Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces Operating Results for Q3 2008

Exhibit 99.1

For immediate release
October 22, 2008

INVESTOR CONTACT
Myrna Vance, 214.932.6646
myrna.vance@texascapitalbank.com

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q3 2008

DALLAS — October 22, 2008 — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the third quarter of 2008.

• Net income of $7.6 million, a decrease of 14%

• EPS of $0.27, a decrease of 18% for the quarter

• Loans held for investment grew 17%

• Total deposits grew 3%

“We are pleased with our results for the third quarter of 2008, especially in light of difficult market conditions,” said George Jones, President and CEO.  “They are consistent with the disclosures made in early September during our capital raise.  With that additional capital, we are well-positioned to take advantage of the opportunities to extend the reach of Texas Capital in our markets with the addition of quality people and relationships.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

							%
	Q3 2008			Q3 2007			Change
QUARTERLY OPERATING RESULTS
Net Income(1)	$	7,565		$	8,844			(14	)%
Diluted EPS(1)	$	.27		$	.33			(18	)%
ROA(1)		.65	%		.88	%
ROE(1)		9.12	%		12.73	%
Diluted Shares		27,793			26,767
BALANCE SHEET
Total Assets(1)	$	4,742,043		$	4,077,290			16	%
Demand Deposits		561,227			471,109			19	%
Total Deposits		3,388,963			3,295,707			3	%
Loans Held for Investment		3,840,172			3,296,039			17	%
Total Loans(1)		4,183,174			3,414,260			23	%
Stockholders’ Equity		380,858			284,209			34	%

(1) From continuing operations

1

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $7.6 million for the third quarter of 2008 compared to $8.8 million for the third quarter of 2007. On a fully diluted basis, earnings per share from continuing operations were $.27 for the three months ended September 30, 2008, compared to $.33 for the same quarter last year. Results of discontinued operations were net losses of $252,000 and $602,000 for the third quarters 2008 and 2007, respectively. The discussion below relates only to continuing operations.

Return on average equity was 9.12 percent and return on average assets was .65 percent for the third quarter of 2008, compared to 12.73 and .88 percent, respectively, for the third quarter of 2007.

Net interest income was $38.3 million for the third quarter of 2008, compared to $36.5 million for the third quarter of 2007. The increase was due to an increase in average earning assets of $626.5 million over levels reported in the third quarter of 2007. The increase in average earning assets included a $585.8 million increase in average loans held for investment and an increase of $138.1 million in average loans held for sale, offset by a decrease of $91.7 million in average securities. The net interest margin in the third quarter of 2008 was 3.47 percent, a 38 basis point decrease from the third quarter of 2007 and with an 18 basis point decrease from the second quarter of 2008 due to growth, asset sensitivity, and the impact of the increase in nonaccrual loans.

Average total deposits increased by $234.2 million from the third quarter of 2007 and increased by $294.6 million from the second quarter of 2008. For the same periods, the average balance of demand deposits increased by $98.3 million or 21 percent to $567.9 million from $469.6 million and increased $54.6 million, or 11 percent, from the second quarter of 2008.

In the third quarter of 2008, net charge-offs were $1.5 million, compared to net charge-offs of $59,000 in the third quarter of 2007 and net charge-offs of $3.6 million in the second quarter of 2008. Non-accrual loans were $46.6 million or 1.21 percent of loans at the end of the third quarter of 2008, compared to $8.7 million, or .26 percent of loans at the end of third quarter of 2007, and $16.8 million, or .45 percent of loans at the end of the second quarter of 2008. Loans 90 days past due and still accruing were $3.0 million at the end of the third quarter of 2008 compared to $4.4 million at the end of the third quarter of 2007, and $16.8 million at the end of the second quarter of 2008. At September 30, 2008, the $3.0 million of past due loans included $2.1 million in premium finance loans. At September 30, 2008, total other real estate owned was $5.8 million compared to $501,000 at the end of the third quarter of 2007, and $5.6 million at the end of the second quarter of 2008. The Company recorded a $4.0 million provision for loan losses in the third quarter of 2008, compared to $2.0 million in the third quarter of 2007 and $8.0 million in the second quarter of 2008. The increase in the third quarter provision resulted in an increase in the reserve to 1.07 percent of loans held for investment as compared to .79 percent at September 30, 2007, and 1.04 percent at the end of the second quarter of 2008. The increase in the provision was due primarily to the effect of the increase in NPAs. In management’s opinion, the reserve is adequate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio.

Non-interest income for the third quarter of 2008 remained consistent, as compared to the third quarter of 2007, at $4.9 million. Brokered loan fees increased $572,000 from the third quarter of 2007 related to growth in mortgage warehouse, offset by a $603,000 decrease in other non-interest income for the same period, which is primarily related to a

2

$1.0 million charge associated with a customer fraud on a specific group of mortgage loans.

Non-interest expense for the third quarter of 2008 increased $1.8 million, or 7 percent, to $27.7 million from $25.9 million in the third quarter of 2007. The increase is primarily related to a $785,000 increase in salaries and employee benefits, which was primarily due to general business growth and $539,000 increase in legal and professional, which is also due to general business growth, increase in nonperforming assets, and continued regulatory and compliance costs.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares’ control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

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TEXAS CAPITAL BANCSHARES, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands except per share data)

	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2008			2008			2008			2007			2007
CONSOLIDATED STATEMENT OF OPERATIONS
Interest income	$	62,240		$	61,008		$	66,809		$	74,018		$	76,140
Interest expense		23,974			22,848			30,210			36,487			39,609
Net interest income		38,266			38,160			36,599			37,531			36,531
Provision for loan losses		4,000			8,000			3,750			9,300			2,000
Net interest income after provision for loan losses		34,266			30,160			32,849			28,231			34,531
Non-interest income		4,885			5,952			5,683			4,880			4,875
Non-interest expense		27,675			27,256			26,277			23,206			25,894
Income from continuing operations before income taxes		11,476			8,856			12,255			9,905			13,512
Income tax expense		3,911			3,056			4,225			3,367			4,668
Income from continuing operations		7,565			5,800			8,030			6,538			8,844
Loss from discontinued operations (after-tax)		(252	)		(116	)		(148	)		(1,185	)		(602	)
Net income	$	7,313		$	5,684		$	7,882		$	5,353		$	8,242
Diluted EPS from continuing operations	$	.27		$	.22		$	.30		$	.24		$	.33
Diluted EPS	$	.26		$	.21		$	.30		$	.20		$	.31
Diluted shares		27,792,938			26,805,358			26,527,904			26,790,685			26,766,788
CONSOLIDATED BALANCE SHEET DATA(1)
Total assets	$	4,742,043		$	4,662,507		$	4,351,514		$	4,286,718		$	4,077,290
Loans held for investment		3,840,172			3,704,262			3,493,631			3,462,608			3,296,039
Loans held for sale		343,002			328,838			239,860			174,166			118,221
Securities		365,145			390,223			425,513			440,119			461,064
Demand deposits		561,227			610,629			503,554			529,334			471,109
Total deposits		3,388,963			3,593,077			3,155,313			3,066,377			3,295,707
Other borrowings		835,025			621,127			751,482			783,851			358,510
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		380,858			314,917			312,016			295,138			284,209
End of period shares		30,844,202			26,780,386			26,631,763			26,389,548			26,243,149
Book value (excluding securities gains/losses)	$	12.33		$	11.80		$	11.55		$	11.22		$	11.00
Tangible book value	$	12.10		$	11.47		$	11.42		$	10.89		$	10.53
SELECTED FINANCIAL RATIOS
From continuing operations
Net interest margin		3.47	%		3.65	%		3.65	%		3.85	%		3.85	%
Return on average assets		.65	%		.53	%		.76	%		.63	%		.88	%
Return on average equity		9.12	%		7.40	%		10.64	%		8.88	%		12.73	%
Non-interest income to earning assets		.44	%		.57	%		.56	%		.50	%		.51	%
Efficiency ratio		64.1	%		61.8	%		62.1	%		54.7	%		62.5	%
Non-interest expense to earning assets		2.49	%		2.59	%		2.61	%		2.37	%		2.71	%
From consolidated
Net interest margin		3.47	%		3.65	%		3.65	%		3.85	%		3.85	%
Return on average assets		.63	%		.52	%		.74	%		.52	%		.82	%
Return on average equity		8.81	%		7.25	%		10.45	%		7.27	%		11.86	%
Tier 1 capital ratio		10.5	%		9.3	%		9.7	%		9.4	%		9.6	%
Total capital ratio		11.4	%		10.3	%		10.8	%		10.6	%		10.7	%
Tier 1 leverage ratio		10.5	%		9.3	%		9.4	%		9.4	%		9.4	%

(1) From continuing operations

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)

	September 30,			September 30,			%
	2008			2007			Change
Assets
Cash and due from banks	$	64,738		$	75,724			(15	)%
Federal funds sold		3,050			—			100	%
Securities, available-for-sale		365,145			461,064			(21	)%
Loans held for sale		343,002			118,221			190	%
Loans held for sale from discontinued operations		648			863			(25	)%
Loans held for investment (net of unearned income)		3,840,172			3,296,039			17	%
Less: Allowance for loan losses		40,998			26,003			58	%
Loans held for investment, net		3,799,174			3,270,036			16	%
Premises and equipment, net		26,683			42,224			(37	)%
Accrued interest receivable and other assets		132,522			102,130			30	%
Goodwill and intangibles, net		7,729			7,891			(2	)%
Total assets	$	4,742,691		$	4,078,153			16	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	561,227		$	471,109			19	%
Interest bearing		2,143,944			1,788,809			20	%
Interest bearing in foreign branches		683,792			1,035,789			(34	)%
Total deposits		3,388,963			3,295,707			3	%
Accrued interest payable		5,508			7,312			(25	)%
Other liabilities		18,931			19,009			N/M
Federal funds purchased		240,405			216,744			11	%
Repurchase agreements		42,032			7,820			437	%
Other borrowings		552,588			133,946			313	%
Trust preferred subordinated debentures		113,406			113,406			N/M
Total liabilities		4,361,833			3,793,944			15	%
Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares — 100,000,000
Issued shares — 30,844,202 and 26,243,149 at September 30, 2008 and 2007, respectively		308			263
Additional paid-in capital		253,599			188,265
Retained earnings		126,464			100,232
Treasury stock (shares at cost: 84,691 and 84,691 at September 30, 2008 and 2007, respectively)		(581	)		(581	)
Deferred compensation		573			573
Accumulated other comprehensive income (loss)		495			(4,543	)
Total stockholders’ equity		380,858			284,209			34	%
Total liabilities and stockholders’ equity	$	4,742,691		$	4,078,153			16	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share data)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2008			2007			2008			2007
Interest income
Interest and fees on loans	$	57,909		$	70,719		$	176,195		$	198,419
Securities		4,281			5,395			13,691			16,784
Federal funds sold		40			12			141			27
Deposits in other banks		10			14			30			44
Total interest income		62,240			76,140			190,057			215,274
Interest expense
Deposits		18,338			32,690			56,777			93,311
Federal funds purchased		2,273			3,554			7,186			9,474
Repurchase agreements		86			175			462			839
Other borrowings		1,791			1,102			7,770			3,231
Trust preferred subordinated debentures		1,486			2,088			4,837			6,198
Total interest expense		23,974			39,609			77,032			113,053
Net interest income		38,266			36,531			113,025			102,221
Provision for loan losses		4,000			2,000			15,750			4,700
Net interest income after provision for loan losses		34,266			34,531			97,275			97,521
Non-interest income
Service charges on deposit accounts		1,161			1,089			3,566			2,935
Trust fee income		1,234			1,182			3,656			3,453
Bank owned life insurance (BOLI) income		299			288			925			887
Brokered loan fees		1,024			452			2,168			1,505
Equipment rental income		1,487			1,581			4,513			4,533
Other		(320	)		283			1,692			2,434
Total non-interest income		4,885			4,875			16,520			15,747
Non-interest expense
Salaries and employee benefits		16,039			15,254			46,750			44,573
Net occupancy expense		2,300			2,194			7,097			6,269
Leased equipment depreciation		1,153			1,311			3,525			3,722
Marketing		521			669			1,847			2,154
Legal and professional		2,338			1,799			6,829			5,202
Communications and data processing		804			849			2,428			2,519
Other		4,520			3,818			12,732			10,961
Total non-interest expense		27,675			25,894			81,208			75,400
Income from continuing operations before income taxes		11,476			13,512			32,587			37,868
Income tax expense		3,911			4,668			11,192			13,053
Income from continuing operations		7,565			8,844			21,395			24,815
Loss from discontinued operations (after-tax)		(252	)		(602	)		(516	)		(746	)
Net income	$	7,313		$	8,242		$	20,879		$	24,069
Basic earnings per share:
Income from continuing operations	$	.27		$	.34		$	.79		$	.95
Net income	$	.26		$	.31		$	.77		$	.92
Diluted earnings per share:
Income from continuing operations	$	.27		$	.33		$	.79		$	.93
Net income	$	.26		$	.31		$	.77		$	.90

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2008			2008			2008			2007			2007
Beginning balance	$	38,460		$	34,021		$	32,821		$	26,003		$	24,062
Loans charged-off:
Commercial		592			3,165			3,086			2,189			100
Real estate — construction		553			118			—			313			—
Real estate — permanent		267			464			5			—			—
Consumer		129			—			—			—			45
Leases		—			—			29			13			10
Total		1,541			3,747			3,120			2,515			155
Recoveries:
Commercial		27			165			524			17			72
Consumer		13			—			—			1			1
Leases		12			21			46			15			23
Real estate — permanent		27			—			—			—			—
Total recoveries		79			186			570			33			96
Net charge-offs		1,462			3,561			2,550			2,482			59
Provision for loan losses		4,000			8,000			3,750			9,300			2,000
Ending balance	$	40,998		$	38,460		$	34,021		$	32,821		$	26,003
Reserve to loans held for investment(2)		1.07	%		1.04	%		.97	%		.95	%		.79	%
Reserve to average loans held for investment(2)		1.08	%		1.07	%		.98	%		.98	%		.81	%
Net charge-offs to average loans(1) (2)		.15	%		.40	%		.29	%		.30	%		.01	%
Net charge-offs to average loans for last twelve months(1) (2)		.28	%		.25	%		.16	%		.07	%		.02	%
Provision for loan losses to average loans(1) (2)		.42	%		.89	%		.43	%		1.11	%		.25	%
Non-performing loans:
Loans past due 90 days and still accruing(3) (4)	$	2,970		$	22,763		$	5,199		$	4,147		$	4,356
Non-accrual (4)		46,579			16,753			13,564			21,385			8,690
Total	$	49,549		$	39,516		$	18,763		$	25,532		$	13,046
Other real estate owned	$	5,792		$	5,615		$	3,126		$	2,671		$	501
Reserve to non-performing loans		.8	x		1.0	x		1.8	x		1.3	x		2.0	x
Reserve to non-accrual loans		.9	x		2.3	x		2.5	x		1.5	x		3.0	x
Reserve to non-performing assets		.7	x		.9	x		1.6	x		1.2	x		1.9	x
Non-accrual loans to loans(2)		1.21	%		.45	%		.39	%		.62	%		.26	%
Loans past due 90 days to loans(2)		.08	%		.61	%		.15	%		.12	%		.13	%
Non-performing loans to loans(2)		1.29	%		1.07	%		.54	%		.74	%		.40	%

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At September 30, 2008, loans past due 90 days and still accruing includes premium finance loans of $2.1 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
(4)	Non-performing assets include $4.4 million of mortgage warehouse loans.

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Dollars in thousands)

	3rd Quarter			2nd Quarter			1st Quarter			4th Quarter			3rd Quarter
	2008			2008			2008			2007			2007
Interest income
Interest and fees on loans	$	57,909		$	56,389		$	61,897		$	68,752		$	70,719
Securities		4,281			4,550			4,860			5,191			5,395
Federal funds sold		40			61			40			65			12
Deposits in other banks		10			8			12			10			14
Total interest income		62,240			61,008			66,809			74,018			76,140
Interest expense
Deposits		18,338			16,715			21,724			27,934			32,690
Federal funds purchased		2,273			1,963			2,950			3,580			3,554
Repurchase agreements		86			54			322			76			175
Other borrowings		1,791			2,652			3,327			2,838			1,102
Trust preferred subordinated debentures		1,486			1,464			1,887			2,059			2,088
Total interest expense		23,974			22,848			30,210			36,487			39,609
Net interest income		38,266			38,160			36,599			37,531			36,531
Provision for loan losses		4,000			8,000			3,750			9,300			2,000
Net interest income after provision for loan losses		34,266			30,160			32,849			28,231			34,531
Non-interest income
Service charges on deposit accounts		1,161			1,288			1,117			1,156			1,089
Trust fee income		1,234			1,206			1,216			1,238			1,182
Bank owned life insurance (BOLI) income		299			315			311			311			288
Brokered loan fees		1,024			671			473			365			452
Equipment rental income		1,487			1,510			1,516			1,605			1,581
Other		(320	)		962			1,050			205			283
Total non-interest income		4,885			5,952			5,683			4,880			4,875
Non-interest expense
Salaries and employee benefits		16,039			15,369			15,342			12,035			15,254
Net occupancy expense		2,300			2,432			2,365			2,161			2,194
Leased equipment depreciation		1,153			1,179			1,193			1,236			1,311
Marketing		521			649			677			850			669
Legal and professional		2,338			2,665			1,826			2,043			1,799
Communications and data processing		804			770			854			838			849
Other		4,520			4,192			4,020			4,043			3,818
Total non-interest expense		27,675			27,256			26,277			23,206			25,894
Income from continuing operations before income taxes		11,476			8,856			12,255			9,905			13,512
Income tax expense		3,911			3,056			4,225			3,367			4,668
Income from continuing operations		7,565			5,800			8,030			6,538			8,844
Loss from discontinued operations (after-tax)		(252	)		(116	)		(148	)		(1,185	)		(602	)
Net income	$	7,313		$	5,684		$	7,882		$	5,353		$	8,242

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TEXAS CAPITAL BANCSHARES, INC.

QUARTERLY FINANCIAL SUMMARY — UNAUDITED
Consolidated Daily Average Balances, Average Yields and Rates
Continuing Operations
(Dollars in thousands)

	3rd Quarter 2008							2nd Quarter 2008							1st Quarter 2008							4th Quarter 2007							3rd Quarter 2007
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense(1)		Rate			Balance		Expense(1)		Rate			Balance		Expense(1)		Rate			Balance		Expense(1)		Rate			Balance		Expense(1)		Rate
Assets
Securities — Taxable	$	325,317	$	3,852		4.71	%	$	356,445	$	4,114		4.64	%	$	380,257	$	4,424		4.68	%	$	402,240	$	4,755		4.69	%	$	416,092	$	4,959		4.73	%
Securities — Non-taxable(2)		47,271		660		5.55	%		48,129		671		5.61	%		48,144		671		5.61	%		48,158		671		5.53	%		48,173		671		5.53	%
Federal funds sold		8,001		40		1.99	%		11,127		61		2.20	%		4,714		40		3.41	%		5,495		65		4.69	%		885		12		5.38	%
Deposits in other banks		2,554		10		1.56	%		1,103		8		2.92	%		1,251		12		3.86	%		1,121		10		3.54	%		1,217		14		4.56	%
Loans held for sale		288,103		4,137		5.78	%		246,026		3,654		5.97	%		171,672		2,610		6.11	%		122,205		1,872		6.08	%		150,031		2,618		6.92	%
Loans held for investment		3,781,289		53,772		5.66	%		3,597,342		52,735		5.90	%		3,483,840		59,287		6.84	%		3,337,968		66,880		7.95	%		3,195,480		68,101		8.46	%
Less reserve for loan losses		38,180		—		—			33,181		—		—			33,519		—		—			25,958		—		—			24,065		—		—
Loans, net of reserve		4,031,212		57,909		5.71	%		3,810,187		56,389		5.95	%		3,621,993		61,897		6.87	%		3,434,215		68,752		7.94	%		3,321,446		70,719		8.45	%
Total earning assets		4,414,355		62,471		5.63	%		4,226,991		61,243		5.83	%		4,056,359		67,044		6.65	%		3,891,229		74,253		7.57	%		3,787,813		76,375		8.00	%
Cash and other assets		201,589							198,946							207,595							215,853							204,859
Total assets	$	4,615,944						$	4,425,937						$	4,263,954						$	4,107,082						$	3,992,672
Liabilities and Stockholders’ Equity
Transaction deposits	$	103,905	$	122		0.47	%	$	111,587	$	129		0.46	%	$	108,349	$	145		0.54	%	$	97,798	$	166		0.67	%	$	95,870	$	239		0.99	%
Savings deposits		778,956		3,371		1.72	%		840,933		3,563		1.70	%		790,185		5,118		2.61	%		859,914		8,127		3.75	%		848,760		9,393		4.39	%
Time deposits		1,275,798		10,524		3.28	%		930,698		8,345		3.61	%		727,494		7,875		4.35	%		624,509		7,734		4.91	%		760,511		9,877		5.15	%
Deposits in foreign branches		720,211		4,321		2.39	%		755,593		4,678		2.49	%		956,603		8,586		3.61	%		1,049,645		11,907		4.50	%		1,037,813		13,181		5.04	%
Total interest bearing deposits		2,878,870		18,338		2.53	%		2,638,811		16,715		2.55	%		2,582,631		21,724		3.38	%		2,631,866		27,934		4.21	%		2,742,954		32,690		4.73	%
Other borrowings		709,157		4,150		2.33	%		830,482		4,669		2.26	%		773,149		6,599		3.43	%		560,523		6,494		4.60	%		368,824		4,831		5.20	%
Trust preferred subordinated debentures		113,406		1,486		5.21	%		113,406		1,464		5.19	%		113,406		1,887		6.69	%		113,406		2,059		7.20	%		113,406		2,088		7.30	%
Total interest bearing liabilities		3,701,433		23,974		2.58	%		3,582,699		22,848		2.56	%		3,469,186		30,210		3.50	%		3,305,795		36,487		4.38	%		3,225,184		39,609		4.87	%
Demand deposits		567,914							513,327							469,299							485,211							469,610
Other liabilities		16,452							14,613							22,071							23,999							22,173
Stockholders’ equity		330,145							315,298							303,398							292,076							275,705
Total liabilities and stockholders’ equity	$	4,615,944						$	4,425,937						$	4,263,954						$	4,107,082						$	3,992,672
Net interest income			$	38,497						$	38,395						$	36,834						$	37,766						$	36,766
Net interest margin						3.47	%						3.65	%						3.65	%						3.85	%						3.85	%

(1)	The loan averages include loans on which the accrual of interest has been discontinued and are stated net of unearned income.
(2)	Taxable equivalent rates used where applicable.

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