Texas Capital Bancshares (TCBI) 8-K Texas Capital Bancshares Announces Operating Results for Q1 2013

FOR IMMEDIATE RELEASE

April 24, 2013

MEDIA CONTACT

Heather Worley, 214.932.6827

heather.worley@texascapitalbank.com

INVESTOR CONTACT

Myrna Vance, 214.932.6646

myrna.vance@texascapitalbank.com

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2013

DALLAS – April 24, 2013 – Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2013.

• Net income increased 5% on a linked quarter basis and 22% from the first quarter of 2012

• EPS increased 5% on a linked quarter basis and 14% from the first quarter of 2012

• Demand deposits increased 4% and total deposits increased 4% on a linked quarter basis; grew 50% and 28%, respectively, from the first quarter of 2012

• Loans held for investment increased 2% and total loans decreased 5% on a linked quarter basis; both grew 19% and 18%, respectively, from the first quarter of 2012

“I am pleased to report another strong quarter for Texas Capital, a quarter in which we maintained superior profitability, returns and credit trends in light of a very competitive environment and an expected seasonal decline in loans held for sale,” said George Jones, CEO. “We are in a strong capital position and have the resources and potential to continue our growth.”

FINANCIAL SUMMARY

(dollars and shares in thousands)

	Q1 2013			Q1 2012			% Change
QUARTERLY OPERATING RESULTS(1)
Net Income	$	33,144		$	27,081			22	%
Net Income Available to Common Shareholders	$	33,063		$	27,081			22	%
Diluted EPS	$	.80		$	.70			14	%
ROA		1.38	%		1.33	%
ROE		15.82	%		17.36	%
Diluted Shares		41,429			38,914
BALANCE SHEET(1)
Total Assets	$	10,020,565		$	8,559,917			17	%
Demand Deposits		2,628,446			1,751,443			50	%
Total Deposits		7,745,831			6,063,558			28	%
Loans Held for Investment		6,920,011			5,792,349			19	%
Loans Held for Sale		2,577,830			2,255,281			14	%
Total Loans		9,497,841			8,047,630			18	%
Stockholders’ Equity		1,013,195			647,341			57	%

(1) Operating results, assets and loans are reporting from continuing operations

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations and net income available to common shareholders of $33.1 million for the quarter ended March 31, 2013 compared to $27.1 million for the first quarter of 2012. On a fully diluted basis, earnings per common share from continuing operations were $.80 for the three months ended March 31, 2013, compared to $.70 for the same period last year. The discussion below relates only to continuing operations.

Return on average common equity was 15.82 percent and return on average assets was 1.38 percent for the first quarter of 2013, compared to 17.36 percent and 1.33 percent, respectively, for the first quarter of 2012.

Net interest income was $98.0 million for the first quarter of 2013, compared to $101.2 million in the fourth quarter of 2012 and $88.2 million for the first quarter of 2012. The net interest margin in the first quarter of 2013 was 4.27 percent, a 27 basis point decrease from the first quarter of 2012 and level with the fourth quarter of 2012. The year over year decrease in net interest margin is due to the growth in loans with lower yields with an offsetting benefit of the reduction in funding costs. The year over year growth in loans more than compensated for the reduction in yields and produced strong growth in net interest income.

Average loans held for investment for the first quarter of 2013 were $6.8 billion, an increase of $1.2 billion from the first quarter of 2012 and $179.9 million from the fourth quarter of 2012. Average loans held for sale for the first quarter of 2013 increased $326.0 million compared to the first quarter of 2012 and decreased $295.4 million from the fourth quarter of 2012 due to seasonal trends.

Average total deposits for the first quarter of 2013 increased by $1.7 billion from the first quarter of 2012 and increased by $499.8 million from the fourth quarter of 2012. For the same periods, the average balance of demand deposits increased by $829.5 million, or 49 percent, to $2.5 billion from $1.7 billion during the first quarter of 2012 and increased $173.2 million from the fourth quarter of 2012.

In the first quarter of 2013, we experienced decreases in levels of non-performing assets. Credit costs, including the provision for credit losses and valuation charges related to other real estate owned (“OREO”) totaled $2.1 million in the first quarter of 2013 compared to $5.7 million in the first quarter of 2012 and $5.5 million in the fourth quarter of 2012. We recorded a $2.0 million provision for credit losses in the first quarter of 2013 compared to $3.0 million in the first quarter of 2012 and $4.5 million in the fourth quarter of 2012. Due to growth and improving credit quality, at March 31, 2013, the combined reserve decreased to 1.14 percent of loans held for investment as compared to 1.29 percent at March 31, 2012 and 1.15 percent at December 31, 2012. In management’s opinion, the reserve is appropriate and is derived from consistent application of the methodology for establishing the adequacy of reserves for Texas Capital Bank’s loan portfolio. In the first quarter of 2013, net charge-offs were $1.2 million, compared to net charge-offs of $828,000 in the first quarter of 2012 and net charge-offs of $3.5 million in the fourth quarter of 2012. Non-accrual loans were $43.4 million, or .63 percent of loans held for investment at the end of the first quarter of 2013, $50.2 million, or .87 percent, at the end of the first quarter of 2012 and $55.8 million, or .82 percent, at the end of the fourth quarter 2012. At March 31, 2013, total OREO was $14.4 million compared to $32.6 million at the end of the first quarter of 2012, and $16.0 million at the end of the fourth quarter of 2012. The OREO balance of $14.4 million at March 31, 2013 is stated net of a $4.5 million valuation allowance. The valuation charge for OREO reflected in non-interest expense was $71,000 in the first quarter of 2013 compared to $2.7 million in the first quarter of 2012 and $955,000 in the fourth quarter of 2012.

Non-interest income increased $2.1 million during the first quarter of 2013, or 23 percent, compared to the same period of 2012 primarily related to a $1.1 million increase in brokered loan fees earned in the mortgage warehouse lending division. Swap fee income increased $855,000 during the first quarter of 2013 due to an increase in swap transactions as compared to the same period in 2012.

Non-interest expense for the first quarter of 2013 increased $3.4 million, or 7 percent, to $55.7 million from $52.3 million in the first quarter of 2012. The increase is primarily related to a $4.5 million increase in salaries and employee benefits to $33.5 million from $29.0 million, which was primarily due to general business growth and costs of performance-based incentives resulting from the increase in stock price.

2

Marketing expense increased $1.1 million from the first quarter of 2012 due to expansion of customer bases in both loans and deposits. Allowance and other carrying costs for OREO expense decreased $2.9 million to $430,000, which included a $71,000 valuation expense. The $71,000 valuation expense in the first quarter of 2013 relates to direct write-downs of the OREO balance, compared to $1.9 million related to direct write-downs and $856,000 related to increasing the valuation allowance for the first quarter of 2012.

Stockholders’ equity increased 57 percent from $647.3 million at March 31, 2012 to $1.0 billion at March 31, 2013, primarily related to the offering of 2.3 million common shares for net proceeds of $87 million in the third quarter of 2012, the offering of 6.0 million shares of preferred shares for proceeds of $145.1 million in the first quarter of 2013 and retained net income. The Bank is well capitalized under regulatory guidelines and at March 31, 2013, the Company’s ratio of tangible common equity to total tangible assets was 8.4 percent.

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)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2013			2012			2012			2012			2012
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	104,179		$	107,769		$	102,011		$	95,546		$	93,131
Interest expense		6,137			6,614			5,156			4,906			4,902
Net interest income		98,042			101,155			96,855			90,640			88,229
Provision for credit losses		2,000			4,500			3,000			1,000			3,000
Net interest income after provision for credit losses		96,042			96,655			93,855			89,640			85,229
Non-interest income		11,281			12,836			10,552			10,462			9,190
Non-interest expense		55,700			60,074			53,521			53,973			52,276
Income from continuing operations before income taxes		51,623			49,417			50,886			46,129			42,143
Income tax expense		18,479			17,982			18,316			16,506			15,062
Income from continuing operations		33,144			31,435			32,570			29,623			27,081
Income (loss) from discontinued operations (after-tax)		(1	)		(6	)		(34	)		(1	)		4
Net income	$	33,143		$	31,429		$	32,536		$	29,622		$	27,085
Preferred stock dividends		81			—			—			—			—
Net income available to common shareholders	$	33,062		$	31,429		$	32,536		$	29,622		$	27,085
Diluted EPS from continuing operations	$	.80		$	.76		$	.80		$	.76		$	.70
Diluted EPS	$	.80		$	.76		$	.80		$	.76		$	.70
Diluted shares		41,429,244			41,505,026			40,755,733			39,141,544			38,914,241
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	10,020,565		$	10,540,542		$	9,881,362		$	9,144,360		$	8,559,917
Loans held for investment		6,920,011			6,785,535			6,549,089			6,234,692			5,792,349
Loans held for sale		2,577,830			3,175,272			2,818,622			2,408,032			2,255,281
Securities		87,527			100,195			107,288			114,964			123,828
Demand deposits		2,628,446			2,535,375			2,114,279			2,019,473			1,751,443
Total deposits		7,745,831			7,440,804			6,717,579			6,660,290			6,063,558
Other borrowings		938,134			1,947,161			2,046,169			1,609,039			1,657,728
Subordinated notes		111,000			111,000			111,000			—			—
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		1,013,195			836,242			802,406			680,705			647,341
End of period shares outstanding		40,771,414			40,727,579			40,580,283			38,114,012			37,912,054
Book value (excluding securities gains/losses)	$	21.10		$	20.45		$	19.68		$	17.75		$	16.96
Tangible book value (excluding securities gains/losses)	$	20.62		$	19.96		$	19.18		$	17.22		$	16.42
SELECTED FINANCIAL RATIOS
Net interest margin		4.27	%		4.27	%		4.36	%		4.49	%		4.54	%
Return on average assets		1.38	%		1.27	%		1.40	%		1.40	%		1.33	%
Return on average common equity		15.82	%		15.35	%		17.27	%		18.08	%		17.36	%
Non-interest income to earning assets		.49	%		.54	%		.47	%		.52	%		.47	%
Efficiency ratio		50.9	%		52.7	%		49.8	%		53.4	%		53.7	%
Efficiency ratio (excluding OREO valuation/write-down)		50.9	%		51.9	%		49.8	%		50.3	%		50.8	%
Non-interest expense to earning assets		2.42	%		2.53	%		2.40	%		2.67	%		2.69	%
Non-interest expense to earning assets (excluding OREO valuation charge)		2.42	%		2.49	%		2.40	%		2.52	%		2.55	%
Tangible common equity to total tangible assets		8.4	%		7.7	%		7.9	%		7.2	%		7.3	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

	March 31, 2013			March 31, 2012			% Change
Assets
Cash and due from banks	$	80,440		$	66,806			20	%
Interest-bearing deposits		86,003			61,324			40	%
Federal funds sold and securities purchased under resale agreements		25,000			20,680			21	%
Securities, available-for-sale		87,527			123,828			(29	)%
Loans held for sale		2,577,830			2,255,281			14	%
Loans held for sale from discontinued operations		301			390			(23	)%
Loans held for investment (net of unearned income)		6,920,011			5,792,349			19	%
Less: Allowance for loan losses		75,000			71,992			4	%
Loans held for investment, net		6,845,011			5,720,357			20	%
Premises and equipment, net		11,249			11,445			(2	)%
Accrued interest receivable and other assets		287,771			279,866			3	%
Goodwill and intangibles, net		19,734			20,330			(3	)%
Total assets	$	10,020,866		$	8,560,307			17	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	2,628,446		$	1,751,443			50	%
Interest bearing		4,739,067			3,902,123			21	%
Interest bearing in foreign branches		378,318			409,992			(8	)%
Total deposits		7,745,831			6,063,558			28	%
Accrued interest payable		1,013			893			13	%
Other liabilities		98,287			77,381			27	%
Federal funds purchased		452,998			383,927			18	%
Repurchase agreements		35,095			23,740			48	%
Other borrowings		450,041			1,250,061			(64	)%
Subordinated notes		111,000			—			100	%
Trust preferred subordinated debentures		113,406			113,406			—
Total liabilities		9,007,671			7,912,966			14	%
Stockholders’ equity:
Preferred stock		150,000			—			100	%
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 40,771,831 and 37,912,054 at March 31, 2013 and 2012, respectively		408			379			8	%
Additional paid-in capital		444,477			353,567			26	%
Retained earnings		415,517			288,868			44	%
Treasury stock (shares at cost: 417 at March 31, 2013 and 2012, respectively)		(8	)		(8	)		—
Accumulated other comprehensive income, net of taxes		2,801			4,535			(38	)%
Total stockholders’ equity		1,013,195			647,341			57	%
Total liabilities and stockholders’ equity	$	10,020,866		$	8,560,307			17	%

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share data)

	Three Months Ended March 31
	2013			2012
Interest income
Loans	$	103,182		$	91,774
Securities		939			1,307
Federal funds sold		6			1
Deposits in other banks		52			49
Total interest income		104,179			93,131
Interest expense
Deposits		3,245			3,472
Federal funds purchased		212			281
Repurchase agreements		4			3
Other borrowings		213			435
Subordinated notes		1,829			—
Trust preferred subordinated debentures		634			711
Total interest expense		6,137			4,902
Net interest income		98,042			88,229
Provision for credit losses		2,000			3,000
Net interest income after provision for credit losses		96,042			85,229
Non-interest income
Service charges on deposit accounts		1,701			1,604
Trust fee income		1,241			1,114
Bank owned life insurance (BOLI) income		498			521
Brokered loan fees		4,744			3,651
Swap fees		1,652			797
Other		1,445			1,503
Total non-interest income		11,281			9,190
Non-interest expense
Salaries and employee benefits		33,541			29,019
Net occupancy expense		3,857			3,604
Marketing		3,972			2,823
Legal and professional		3,940			3,991
Communications and technology		3,122			2,483
Allowance and other carrying costs for OREO		430			3,342
Other		6,838			7,014
Total non-interest expense		55,700			52,276
Income from continuing operations before income taxes		51,623			42,143
Income tax expense		18,479			15,062
Income from continuing operations		33,144			27,081
Income (loss) from discontinued operations (after-tax)		(1	)		4
Net income		33,143		$	27,085
Preferred stock dividends		81			—
Net income available to common shareholders	$	33,062		$	27,085
Basic earnings per common share:
Income from continuing operations	$	.82		$	.72
Net income	$	.82		$	.72
Diluted earnings per common share:
Income from continuing operations	$	.80		$	.70
Net income	$	.80		$	.70

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TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE

(Dollars in thousands)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2013			2012			2012			2012			2012
Reserve for loan losses:
Beginning balance	$	74,337		$	73,722		$	72,404		$	71,992		$	70,295
Loans charged-off:
Commercial		1,648			4,044			1,154			1,048			462
Real estate – construction		—			—			—			—			—
Real estate – term		105			—			284			56			559
Consumer		19			—			49			—			—
Leases		—			34			49			26			95
Total loans charged-off		1,772			4,078			1,536			1,130			1,116
Recoveries:
Commercial		397			350			132			191			159
Real estate – construction		—			—			10			—			—
Real estate – term		8			226			130			348			108
Consumer		30			7			18			3			5
Leases		121			21			16			55			16
Total recoveries		556			604			306			597			288
Net charge-offs		1,216			3,474			1,230			533			828
Provision for loan losses		1,879			4,089			2,548			945			2,525
Ending balance	$	75,000		$	74,337		$	73,722		$	72,404		$	71,992
Reserve for off-balance sheet credit losses:
Beginning balance	$	3,855		$	3,444		$	2,992		$	2,937		$	2,462
Provision (benefit) for off-balance sheet credit losses		121			411			452			55			475
Ending balance	$	3,976		$	3,855		$	3,444		$	2,992		$	2,937
Total reserves for credit losses	$	78,976		$	78,192		$	77,166		$	75,396		$	74,929
Total provision for credit losses	$	2,000		$	4,500		$	3,000		$	1,000		$	3,000
Reserve to loans held for investment(2)		1.08	%		1.10	%		1.13	%		1.16	%		1.24	%
Reserve to average loans held for investment(2)		1.10	%		1.12	%		1.16	%		1.22	%		1.27	%
Net charge-offs to average loans(1)(2)		.07	%		.21	%		.08	%		.04	%		.06	%
Net charge-offs to average loans for last twelve months(1)(2)		.10	%		.10	%		.10	%		.20	%		.40	%
Total provision for credit losses to average loans(1)(2)		.12	%		.27	%		.19	%		.07	%		.21	%
Combined reserves for credit losses to loans held for investment(2)		1.14	%		1.15	%		1.18	%		1.21	%		1.29	%
Non-performing assets (NPAs):
Non-accrual loans	$	43,424		$	55,833		$	57,275		$	56,433		$	50,160
Other real estate owned (OREO) (4)		14,426			15,991			19,079			27,882			32,601
Total	$	57,850		$	71,824		$	76,354		$	84,315		$	82,761
Non-accrual loans to loans(2)		.63	%		.82	%		.87	%		.91	%		.87	%
Total NPAs to loans plus OREO(2)		.83	%		1.06	%		1.16	%		1.35	%		1.42	%
Total NPAs to earning assets		.60	%		.71	%		.81	%		.97	%		1.01	%
Reserve for loan losses to non-accrual loans		1.7x			1.3x			1.3x			1.3x			1.4x
Restructured loans	$	11,755		$	10,407		$	9,145		$	13,943		$	12,582
Loans past due 90 days and still accruing(3)	$	12,614		$	3,674		$	3,622		$	4,421		$	5,941
Loans past due 90 days to loans(2)		.18	%		.05	%		.06	%		.07	%		.10	%

(1) Interim period ratios are annualized.

(2) Excludes loans held for sale.

(3) At March 31, 2013, loans past due 90 days and still accruing includes premium finance loans of $4.4 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) At March 31, 2013, OREO balance is net of $4.5 million valuation allowance.

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

(Dollars in thousands)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2013			2012			2012			2012			2012
Interest income
Interest and fees on loans	$	103,182		$	106,653		$	100,830		$	94,291		$	91,774
Securities		939			1,053			1,125			1,203			1,307
Federal funds sold		6			6			2			4			1
Deposits in other banks		52			57			54			48			49
Total interest income		104,179			107,769			102,011			95,546			93,131
Interest expense
Deposits		3,245			3,312			3,378			3,482			3,472
Federal funds purchased		212			190			268			240			281
Repurchase agreements		4			3			3			4			3
Other borrowings		213			615			607			492			435
Subordinated notes		1,829			1,829			208			—			—
Trust preferred subordinated debentures		634			665			692			688			711
Total interest expense		6,137			6,614			5,156			4,906			4,902
Net interest income		98,042			101,155			96,855			90,640			88,229
Provision for credit losses		2,000			4,500			3,000			1,000			3,000
Net interest income after provision for credit losses		96,042			96,655			93,855			89,640			85,229
Non-interest income
Service charges on deposit accounts		1,701			1,693			1,684			1,624			1,604
Trust fee income		1,241			1,260			1,216			1,232			1,114
Bank owned life insurance (BOLI) income		498			510			549			588			521
Brokered loan fees		4,744			4,978			4,839			4,128			3,651
Swap fees		1,652			2,093			1,397			622			797
Other		1,445			2,302			867			2,268			1,503
Total non-interest income		11,281			12,836			10,552			10,462			9,190
Non-interest expense
Salaries and employee benefits		33,541			31,198			31,009			30,230			29,019
Net occupancy expense		3,857			3,916			3,653			3,679			3,604
Marketing		3,972			3,980			3,472			3,174			2,823
Legal and professional		3,940			5,320			4,916			3,330			3,991
Communications and technology		3,122			3,070			2,885			2,720			2,483
Allowance and other carrying costs for OREO		430			1,369			552			3,812			3,342
Litigation settlement expense		—			4,000			—			—			—
Other		6,838			7,221			7,034			7,028			7,014
Total non-interest expense		55,700			60,074			53,521			53,973			52,276
Income from continuing operations before income taxes		51,623			49,417			50,886			46,129			42,143
Income tax expense		18,479			17,982			18,316			16,506			15,062
Income from continuing operations		33,144			31,435			32,570			29,623			27,081
Income (loss) from discontinued operations (after-tax)		(1	)		(6	)		(34	)		(1	)		4
Net income		33,143		$	31,429		$	32,536		$	29,622		$	27,085
Preferred stock dividends		81			—			—			—			—
Net income available to common shareholders	$	33,062		$	31,429		$	32,536		$	29,622		$	27,085

8

TEXAS CAPITAL BANCSHARES, INC.

QUARTERLY FINANCIAL SUMMARY – UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)

	1st Quarter 2013							4th Quarter 2012							3rd Quarter 2012							2nd Quarter 2012							1st Quarter 2012
	Average Balance		Revenue/ Expense (1)		Yield/ Rate			Average Balance		Revenue/ Expense (1)		Yield/ Rate			Average Balance		Revenue/ Expense (1)		Yield/ Rate			Average Balance		Revenue/ Expense (1)		Yield/ Rate			Average Balance		Revenue/ Expense (1)		Yield/ Rate
Assets
Securities – Taxable	$	71,220	$	729		4.15	%	$	78,182	$	811		4.13	%	$	84,583	$	881		4.14	%	$	91,623	$	948		4.16	%	$	109,003	$	1,041		3.84	%
Securities – Non-taxable(2)		22,174		323		5.91	%		25,301		372		5.85	%		25,717		376		5.82	%		26,817		393		5.89	%		28,506		409		5.77	%
Federal funds sold and securities purchased under resale agreements		24,785		6		0.10	%		21,617		6		0.11	%		9,360		2		0.09	%		8,077		4		0.20	%		6,848		1		0.06	%
Deposits in other banks		78,718		52		0.27	%		69,886		57		0.32	%		64,859		54		0.33	%		60,416		48		0.32	%		49,470		49		0.41	%
Loans held for sale		2,362,646		22,641		3.89	%		2,658,092		26,440		3.96	%		2,432,027		24,433		4.00	%		2,062,449		21,087		4.11	%		2,036,622		21,315		4.21	%
Loans held for investment		6,842,766		80,541		4.77	%		6,662,817		80,213		4.79	%		6,313,263		76,397		4.81	%		5,950,913		73,204		4.95	%		5,660,993		70,459		5.01	%
Less reserve for loan losses		74,442		—		—			73,912		—		—			72,373		—		—			71,779		—		—			70,261		—		—
Loans, net of reserve		9,130,970		103,182		4.58	%		9,246,997		106,653		4.59	%		8,672,917		100,830		4.63	%		7,941,583		94,291		4.78	%		7,627,354		91,774		4.84	%
Total earning assets		9,327,867		104,292		4.53	%		9,441,983		107,899		4.55	%		8,857,436		102,143		4.59	%		8,128,516		95,684		4.73	%		7,821,181		93,274		4.80	%
Cash and other assets		401,692							427,299							399,428							394,086							388,009
Total assets	$	9,729,559						$	9,869,282						$	9,256,864						$	8,522,602						$	8,209,190
Liabilities and Stockholders’ Equity
Transaction deposits	$	1,003,735	$	253		0.10	%	$	941,947	$	244		0.10	%	$	803,776	$	247		0.12	%	$	694,463	$	198		0.11	%	$	565,319	$	140		0.10	%
Savings deposits		3,246,675		2,297		0.29	%		2,933,904		2,299		0.31	%		2,922,852		2,185		0.30	%		2,664,598		2,107		0.32	%		2,535,412		2,083		0.33	%
Time deposits		403,113		414		0.42	%		423,685		448		0.42	%		491,783		576		0.47	%		584,581		831		0.57	%		624,823		920		0.59	%
Deposits in foreign branches		335,265		281		0.34	%		362,580		321		0.35	%		431,412		370		0.34	%		444,478		346		0.31	%		409,422		329		0.32	%
Total interest bearing deposits		4,988,788		3,245		0.26	%		4,662,116		3,312		0.28	%		4,649,823		3,378		0.29	%		4,388,120		3,482		0.32	%		4,134,976		3,472		0.34	%
Other borrowings		1,041,573		429		0.17	%		1,725,129		808		0.19	%		1,639,953		878		0.21	%		1,428,575		736		0.21	%		1,554,716		719		0.19	%
Subordinated notes		111,000		1,829		6.68	%		111,000		1,829		6.56	%		12,065		208		6.86	%		—		—		—			—		—		—
Trust preferred subordinated debentures		113,406		634		2.27	%		113,406		665		2.33	%		113,406		692		2.43	%		113,406		688		2.44	%		113,406		711		2.52	%
Total interest bearing liabilities		6,254,767		6,137		0.40	%		6,611,651		6,614		0.40	%		6,415,247		5,156		0.32	%		5,930,101		4,906		0.33	%		5,803,098		4,902		0.34	%
Demand deposits		2,529,927							2,356,758							2,010,694							1,864,456							1,700,390
Other liabilities		90,538							86,308							80,810							69,076							78,108
Stockholders’ equity		854,327							814,565							750,113							658,969							627,594
Total liabilities and stockholders’ equity	$	9,729,559						$	9,869,282						$	9,256,864						$	8,522,602						$	8,209,190
Net interest income			$	98,155						$	101,285						$	96,987						$	90,778						$	88,372
Net interest margin						4.27	%						4.27	%						4.36	%						4.49	%						4.54	%

(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.

9