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

Exhibit 99.3

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands) (2010, 2011, 2012 corrected)

	Year ended December 31
	2013			2012			2011			2010
Operating activities
Net income from continuing operations	$	121,046		$	120,709		$	76,102		$	37,323
Adjustments to reconcile net income from continuing operations to net cash used in operating activities:
Provision for credit losses		19,000			11,500			28,500			53,500
Deferred tax benefit/(expense)		(11,599	)		(3,131	)		(6,682	)		(5,613	)
Depreciation and amortization		5,382			4,782			5,364			6,821
Amortization and accretion on securities		22			38			78			139
Bank owned life insurance (BOLI) income		(1,917	)		(2,168	)		(2,095	)		(1,889	)
Stock-based compensation expense		20,953			12,018			7,340			6,770
Tax benefit from stock option exercises		1,200			7,769			3,139			621
Excess tax benefits from stock-based compensation arrangements		(3,427	)		(22,197	)		(8,970	)		(1,774	)
(Gain) loss on sale of assets		(931	)		(917	)		(80	)		93
Changes in operating assets and liabilities:
Accrued interest receivable and other assets		37,100			(56,679	)		(59,508	)		(24,287	)
Accrued interest payable and other liabilities		2,308			3,066			32,694			25,207
Net cash used in operating activities of continuing operations		189,137			74,790			75,882			96,911
Net cash provided by/(used in) operating activities of discontinued operations		13			54			(29	)		(128	)
Net cash used in operating activities		189,150			74,844			75,853			96,783
Investing activities
Purchases of available-for-sale securities		(2	)		(13	)		(10,000	)		—
Maturities and calls of available-for-sale securities		15,890			14,260			8,240			4,425
Principal payments received on available-for-sale securities		18,542			27,000			42,421			74,895
Originations of mortgage finance loans		(51,087,328	)		(51,110,692	)		(27,234,509	)		(22,859,900	)
Proceeds from pay-offs of mortgage finance loans		51,478,335			50,015,503			26,348,634			22,359,195
Net increase in loans held for investment, excluding mortgage finance loans		(1,706,505	)		(1,220,626	)		(890,753	)		(303,618	)
Purchase of premises and equipment, net		(4,029	)		(3,538	)		(3,286	)		(3,832	)
Proceeds from sale of foreclosed assets		11,667			14,921			23,329			5,980
Cash paid for acquisition		(2,445	)		—			(11,482	)		(10,152	)
Net cash used in investing activities of continuing operations		(1,275,875	)		(2,263,185	)		(1,727,406	)		(733,007	)
Financing activities
Net increase in deposits		1,816,575			1,884,547			100,856			1,334,676
Proceeds from issuance of stock related to stock-based awards and warrants		(2,210	)		355			2,190			866
Proceeds from issuance of common stock		—			86,987			—			12,477
Proceeds from issuance of preferred stock		144,987			—			—			—
Preferred dividends paid		(6,960	)		—			—			—
Net increase (decrease) in other borrowings		(797,002	)		318,115			1,341,761			(362,404	)
Excess tax benefits from stock-based compensation arrangements		3,427			22,197			8,970			1,774
Net increase (decrease) in federal funds purchased		(124,529	)		(139,070	)		128,468			(296,738	)
Issuance of subordinated notes		—			111,000			—			—
Net cash provided by financing activities of continuing operations		1,034,288			2,284,131			1,582,245			690,651
Net increase (decrease) in cash and cash equivalents		(52,437	)		95,790			(69,308	)		54,427
Cash and cash equivalents at beginning of period		206,348			110,558			179,866			125,439
Cash and cash equivalents at end of period	$	153,911		$	206,348		$	110,558		$	179,866
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	24,962		$	21,527		$	20,643		$	38,025
Cash paid during the period for income taxes		77,635			69,095			32,127			27,134
Transfers from loans/leases to OREO and other repossessed assets		1,331			3,489			24,327			29,559

See accompanying notes to consolidated financial statements.

EXHIBIT 99.3 – SUPPLEMENTAL DATA (unaudited)

SELECTED CONSOLIDATED FINANCIAL DATA (corrected)(unaudited)

	2012			2011			2010			2009			2008
	(In thousands, except per share, average share and percentage data)
Consolidated Balance Sheet Data (1)
Total assets (2)	$	10,540,542		$	8,137,225		$	6,445,679		$	5,698,318		$	5,141,034
Loans held for investment, mortgage finance loans		3,175,272			2,080,081			1,194,209			693,504			496,351
Loans held for investment		6,785,535			5,572,371			4,711,130			4,457,293			4,027,871
Loans held for sale from discontinued operations		302			393			490			586			648
Securities available-for-sale		100,195			143,710			185,424			266,128			378,752
Demand deposits		2,535,375			1,751,944			1,451,307			899,492			587,161
Total deposits		7,440,804			5,556,257			5,455,401			4,120,725			3,333,187
Federal funds purchased		273,179			412,249			283,781			580,519			350,155
Other borrowings		1,673,982			1,355,867			14,106			376,510			930,452
Subordinated notes		111,000			—			—			—			—
Trust preferred subordinated debentures		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		836,242			616,331			528,319			481,360			387,073
Selected Financial Ratios (3)
Asset Quality Ratios
Net charge-offs (recoveries) to average loans		0.07	%		0.47	%		0.95	%		0.41	%		0.35	%
Net charge-offs (recoveries) to average loans excluding mortgage finance loans		0.10	%		0.58	%		1.14	%		0.46	%		0.35	%
Reserve for loan losses to loans held for investment		0.75	%		0.92	%		1.21	%		1.32	%		1.00	%
Reserve for loan losses to loans held for investment excluding mortgage finance loans		1.10	%		1.26	%		1.52	%		1.52	%		1.13	%
Reserve for loan losses to non-accrual loans		1.3x			1.3x			.6x			.7x			1.0x
Non-accrual loans to loans		0.56	%		0.71	%		1.90	%		1.86	%		1.05	%
Non-accrual loans to loans excluding mortgage finance loans		0.82	%		0.98	%		2.38	%		2.15	%		1.18	%
Total NPAs to loans plus OREO		0.72	%		1.17	%		2.60	%		2.38	%		1.61	%
Total NPAs to loans excluding mortgage finance loans plus OREO		1.06	%		1.61	%		3.26	%		2.74	%		1.81	%

⁽¹⁾  The consolidated statement of operating data and consolidated balance sheet data presented above for the five most recent fiscal years ended December 31, have been derived from our audited consolidated financial statements. The historical results are not necessarily indicative of the results to be expected in any future period.

⁽²⁾  From continuing operations.

⁽³⁾  Mortgage finance loans were previously classified as loans held for sale but have been reclassified as loans held for investment. The indicated ratios are presented with and excluding the mortgage finance loans because the risk profile of our mortgage finance loans is different than our other loans held for investment. No provision for credit losses is allocated to these loans based on the internal risk grade assigned.

Consolidated Daily Average Balances, Average Yields and Rates (corrected)

	2012							2011							2010
	Average Balance		Revenue / Expense(1)		Yield / Rate			Average Balance		Revenue / Expense(1)		Yield / Rate			Average Balance		Revenue / Expense(1)		Yield / Rate
Assets
Securities—Taxable	$	90,796	$	3,681		4.05	%	$	123,124	$	5,186		4.21	%	$	183,363	$	8,023		4.38	%
Securities—Non-taxable(2)		26,579		1,550		5.83	%		33,996		1,957		5.76	%		39,360		2,243		5.70	%
Federal funds sold		11,497		13		0.11	%		21,897		37		0.17	%		112,716		210		0.19	%
Deposits in other banks		61,192		208		0.34	%		107,734		352		0.33	%		47,365		116		0.24	%
Loans held for investment, mortgage finance loans		2,298,651		93,275		4.06	%		1,210,954		53,940		4.45	%		883,033		41,808		4.73	%
Loans held for investment		6,148,860		300,273		4.88	%		5,059,134		260,813		5.16	%		4,475,668		228,195		5.10	%
Less reserve for loan losses		72,087		—		—			67,888		—		—			71,942		—		—
Loans, net		8,375,424		393,548		4.70	%		6,202,200		314,753		5.07	%		5,286,759		270,003		5.11	%
Total earning assets		8,565,488		399,000		4.66	%		6,488,951		322,285		4.97	%		5,669,563		280,595		4.95	%
Cash and other assets		400,472							330,137							281,448
Total assets	$	8,965,960						$	6,819,088						$	5,951,011
Liabilities and stockholders’ equity
Transaction deposits	$	752,040	$	829		0.11	%	$	391,100	$	195		0.05	%	$	437,674	$	974		0.22	%
Savings deposits		2,765,089		8,674		0.31	%		2,401,997		7,797		0.32	%		2,142,541		15,777		0.74	%
Time deposits		530,816		2,775		0.52	%		562,654		5,231		0.93	%		913,616		11,707		1.28	%
Deposits in foreign branches		411,891		1,366		0.33	%		490,703		1,727		0.35	%		401,155		4,851		1.21	%
Total interest bearing deposits		4,459,836		13,644		0.31	%		3,846,454		14,950		0.39	%		3,894,986		33,309		0.86	%
Other borrowings		1,585,723		3,141		0.20	%		723,172		1,140		0.16	%		280,899		1,155		0.41	%
Subordinated notes		30,934		2,037		6.58	%		—		—		—			—		—		—
Trust preferred subordinated debentures		113,406		2,756		2.43	%		113,406		2,573		2.27	%		113,406		3,672		3.24	%
Total interest bearing liabilities		6,189,899		21,578		0.35	%		4,683,032		18,663		0.40	%		4,289,291		38,136		0.89	%
Demand deposits		1,984,171							1,515,021							1,116,260
Other liabilities		78,700							52,888							29,492
Stockholders’ equity		713,190							568,147							515,968
Total liabilities and stockholders’ equity	$	8,965,960						$	6,819,088						$	5,951,011