TEXAS CAPITAL BANCSHARES INC/TX - FORM 8-K - EX-99.1

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Exhibit 99.1

LOGO

October 23, 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, INC. ANNOUNCES OPERATING RESULTS FOR Q3 2013

DALLAS – October 23, 2013 – Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the third quarter of 2013.

•

Net income increased 39% on a linked quarter basis and increased 3% from the third quarter of 2012 (47% increase on a linked quarter basis and 9% increase from the third quarter of 2012 excluding charge related to FDIC assessment)

•

EPS increased 42% on a linked quarter basis and decreased 8% from the third quarter of 2012 (52% increase on a linked quarter basis and 1% decrease from the third quarter of 2012 excluding charge related to FDIC assessment)

•

Demand deposits increased 11% and total deposits increased 12% on a linked quarter basis, growing 53% and 33%, respectively, from the third quarter of 2012

•

Loans held for investment increased 7% and total loans remained consistent on a linked quarter basis, growing 23% and 10% from the third quarter of 2012

“Our quality growth, both in loans held for investment and in deposits, continues,” said George Jones, CEO. “We are taking advantage of the benefits of our model in attracting great people who produce the results we reported today. It is our commitment to our shareholders to stay focused on those things that improve shareholder value.”

FINANCIAL SUMMARY

(dollars and shares in thousands)


	Q3 2013			Q3 2012			% Change
QUARTERLY OPERATING RESULTS⁽¹⁾
Net Income	$	33,474		$	32,570			3	%
Net Income Available to Common Shareholders	$	31,037		$	32,570			(5	)%
Diluted EPS	$	.74		$	.80			(8	)%
ROA		1.25	%		1.40	%
ROE		13.74	%		17.27	%
Diluted Shares		41,792			40,756
BALANCE SHEET⁽¹⁾
Total Assets	$	10,797,448		$	9,881,362			9	%
Demand Deposits		3,242,060			2,114,279			53	%
Total Deposits		8,957,081			6,717,579			33	%
Loans Held for Investment		8,051,328			6,549,089			23	%
Total Loans		10,313,413			9,367,711			10	%
Stockholders’ Equity		1,066,629			802,406			33	%

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

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income from continuing operations of $33.5 million and net income available to common shareholders of $31.0 million for the quarter ended September 30, 2013, compared to $32.6 million for both net income from continuing operations and net income available to common shareholders for the third quarter of 2012. On a fully diluted basis, earnings per common share from continuing operations were $.74 for the three months ended September 30, 2013, compared to $.80 for the same period last year. The preferred dividend is equal to $.06 per share for the third quarter of 2013. The discussion below relates only to continuing operations.

Return on average common equity was 13.74 percent and return on average assets was 1.25 percent for the third quarter of 2013, compared to 17.27 percent and 1.40 percent, respectively, for the third quarter of 2012.

Net interest income was $108.8 million for the third quarter of 2013, compared to $101.2 million in the second quarter of 2013 and $96.9 million for the third quarter of 2012. The net interest margin in the third quarter of 2013 was 4.21 percent, a 2 basis point increase from the second quarter of 2013 and a 15 basis point decrease from the third quarter of 2012. The year over year decrease in net interest margin is due to the growth in loans with lower yields offset with a reduction in the total cost of deposits and borrowed funds. 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 third quarter of 2013 were $7.7 billion, an increase of $1.4 billion from the third quarter of 2012 and $579.6 million from the second quarter of 2013. Average loans held for sale for the third quarter of 2013 decreased $69.9 million compared to the third quarter of 2012 and decreased $44.1 million from the second quarter of 2013.

Average total deposits for the third quarter of 2013 increased by $2.1 billion from the third quarter of 2012 and increased by $692.9 million from the second quarter of 2013. For the same periods, the average balance of demand deposits increased by $1.1 billion, or 55 percent, to $3.1 billion from $2.0 billion during the third quarter of 2012 and increased $210.3 million from the second quarter of 2013.

In the third quarter of 2013, we experienced continued 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 $5.0 million in the third quarter of 2013 compared to $3.1 million in the third quarter of 2012 and $7.4 million in the second quarter of 2013. We recorded a $5.0 million provision for credit losses in the third quarter of 2013 compared to $3.0 million in the third quarter of 2012 and $7.0 million in the second quarter of 2013. The substantial majority of the provision in the third quarter of 2013 was directly related to the significant growth in loans held for investment during the quarter. Due to growth and improving credit quality, at September 30, 2013, the combined reserve decreased to 1.10 percent of loans held for investment as compared to 1.11 percent at June 30, 2013 and 1.18 percent at September 30, 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 third quarter of 2013, net charge-offs were $46,000, compared to net charge-offs of $2.4 million in the second quarter of 2013 and $1.2 million in the third quarter of 2012. For the first nine months of 2013, the net charge-off ratio was 7 basis points compared to 6 basis points for the same period in 2012. Non-accrual loans were $35.7 million, or .44 percent of loans held for investment at the end of the third quarter of 2013, $57.3 million, or .87 percent, at the end of the third quarter of 2012 and $38.5 million, or .51 percent, at the end of the second quarter 2013. At September 30, 2013, total OREO was $12.8 million compared to $19.1 million at the end of the third quarter of 2012, and $13.1 million at the end of the second quarter of 2013. The OREO balance of $12.8 million at September 30, 2013, is stated net of a $4.6 million valuation allowance. We did not record a valuation charge for OREO in the third quarter of 2013 compared to $64,000 in the third quarter of 2012 and $383,000 in the second quarter of 2013.

Non-interest income decreased $121,000 during the third quarter of 2013, or 1 percent, compared to the same period of 2012 primarily related to a $761,000 decrease in brokered loan fees earned in the mortgage finance division. Swap fee income decreased $414,000 during the third quarter of 2013 due to a decrease in swap transactions as compared to the same period in 2012. Offsetting these decreases was a $1.2 million increase in other non-interest income during the third quarter of 2013 as compared to the same period in 2012.

Non-interest expense for the third quarter of 2013 increased $8.5 million, or 16 percent, to $62.0 million from $53.5 million in the third quarter of 2012. The increase is primarily related to a $5.0 million increase in salaries and employee benefits to $36.0 million from $31.0 million due to general business growth. Non-interest expense also includes a $3.0 million assessment by the FDIC that was paid during the third quarter of 2013. The assessment related to the year-end call reports for 2011 and 2012, which were amended for the change in the risk weight applicable to our mortgage finance loan portfolio. As previously disclosed, the amendment caused one capital ratio to fall below “well-capitalized” for each quarter end. We do not believe this is an assessment warranted under our circumstances, and we have disputed the charge. Any recovery of the $3.0 million expense would be credited to non-interest expense in a future quarter.

Stockholders’ equity increased 33 percent from $802.4 million at September 30, 2012 to $1.1 billion at September 30, 2013, primarily related to 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 September 30, 2013, the Company’s ratio of tangible common equity to total tangible assets was 8.3 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 individuals. 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.

TEXAS CAPITAL BANCSHARES, INC.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)

(Dollars in thousands except per share data)


	3^rd Quarter			2^nd Quarter			1^st Quarter			4^th Quarter			3^rd Quarter
	2013			2013			2013			2012			2012
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	115,217		$	107,264		$	104,179		$	107,769		$	102,011
Interest expense		6,441			6,044			6,137			6,614			5,156

Net interest income		108,776			101,220			98,042			101,155			96,855
Provision for credit losses		5,000			7,000			2,000			4,500			3,000

Net interest income after provision for credit losses		103,776			94,220			96,042			96,655			93,855
Non-interest income		10,431			11,128			11,281			12,836			10,552
Non-interest expense		62,009			68,734			55,700			60,074			53,521

Income from continuing operations before income taxes		52,198			36,614			51,623			49,417			50,886
Income tax expense		18,724			12,542			18,479			17,982			18,316

Income from continuing operations		33,474			24,072			33,144			31,435			32,570
Income (loss) from discontinued operations (after-tax)		2			1			(1	)		(6	)		(34	)

Net income		33,476			24,073			33,143			31,429			32,536
Preferred stock dividends		2,437			2,438			81			—			—

Net income available to common shareholders	$	31,039		$	21,635		$	33,062		$	31,429		$	32,536

Diluted EPS from continuing operations	$	.74		$	.52		$	.80		$	.76		$	.80
Diluted EPS	$	.74		$	.52		$	.80		$	.76		$	.80
Diluted shares		41,791,674			41,723,525			41,429,244			41,505,026			40,755,733
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	10,797,448		$	10,977,990		$	10,020,565		$	10,540,542		$	9,881,362
Loans held for investment		8,051,328			7,510,662			6,920,011			6,785,535			6,549,089
Loans held for sale		2,262,085			2,838,234			2,577,830			3,175,272			2,818,622
Securities		67,815			75,861			87,527			100,195			107,288
Demand deposits		3,242,060			2,928,735			2,628,446			2,535,375			2,114,279
Total deposits		8,957,081			7,980,598			7,745,831			7,440,804			6,717,579
Other borrowings		449,724			1,634,630			938,134			1,947,161			2,046,169
Subordinated notes		111,000			111,000			111,000			111,000			111,000
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		1,066,629			1,034,955			1,013,195			836,242			802,406
End of period shares outstanding		40,934,623			40,862,481			40,771,414			40,727,579			40,580,283
Book value (excluding securities gains/losses)	$	22.35		$	21.60		$	21.10		$	20.45		$	19.68
Tangible book value (excluding securities gains/losses)	$	21.82		$	21.08		$	20.62		$	19.96		$	19.18
SELECTED FINANCIAL RATIOS
Net interest margin		4.21	%		4.19	%		4.27	%		4.27	%		4.36	%
Return on average assets		1.25	%		0.95	%		1.38	%		1.27	%		1.40	%
Return on average common equity		13.74	%		9.94	%		15.82	%		15.35	%		17.27	%
Non-interest income to earning assets		.40	%		.46	%		.49	%		.54	%		.47	%
Efficiency ratio		52.0	%		61.2	%		50.9	%		52.7	%		49.8	%
Efficiency ratio (excluding OREO valuation/write-down)		52.0	%		60.8	%		50.9	%		51.9	%		49.8	%
Non-interest expense to earning assets		2.40	%		2.84	%		2.42	%		2.53	%		2.40	%
Non-interest expense to earning assets (excluding OREO valuation charge)		2.40	%		2.83	%		2.42	%		2.49	%		2.40	%
Tangible common equity to total tangible assets		8.3	%		7.9	%		8.4	%		7.7	%		7.9	%

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)


	September 30, 2013			September 30, 2012			% Change
Assets
Cash and due from banks	$	118,268		$	88,220			34	%
Interest-bearing deposits		76,690			60,971			26	%
Federal funds sold		100			—			100	%
Securities, available-for-sale		67,815			107,288			(37	)%
Loans held for sale		2,262,085			2,818,622			(20	)%
Loans held for sale from discontinued operations		296			304			(3	)%
Loans held for investment (net of unearned income)		8,051,328			6,549,089			23	%
Less: Allowance for loan losses		84,006			73,722			14	%

Loans held for investment, net		7,967,322			6,475,367			23	%
Premises and equipment, net		12,653			11,280			12	%
Accrued interest receivable and other assets		271,052			299,582			(10	)%
Goodwill and intangibles, net		21,463			20,032			7	%

Total assets	$	10,797,744		$	9,881,666			9	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	3,242,060		$	2,114,279			53	%
Interest bearing		5,344,152			4,171,405			28	%
Interest bearing in foreign branches		370,869			431,895			(14	)%

Total deposits		8,957,081			6,717,579			33	%
Accrued interest payable		743			1,039			(28	)%
Other liabilities		99,161			90,067			10	%
Federal funds purchased		169,794			473,330			(64	)%
Repurchase agreements		29,899			22,788			31	%
Other borrowings		250,031			1,550,051			(84	)%
Subordinated notes		111,000			111,000			—
Trust preferred subordinated debentures		113,406			113,406			—

Total liabilities		9,731,115			9,079,260			7	%
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:		150,000			—			100	%
Common stock, $.01 par value:
Authorized shares — 100,000,000
Issued shares — 40,935,040 and 38,114,429 at September 30, 2013 and 2012, respectively		409			409			—
Additional paid-in capital		446,249			447,104			N/M
Retained earnings		468,191			351,026			33	%
Treasury stock (shares at cost: 417 at September 30, 2013 and 2012, respectively)		(8	)		(8	)		—
Accumulated other comprehensive income, net of taxes		1,788			3,878			(54	)%

Total stockholders’ equity		1,066,629			802,406			33	%

Total liabilities and stockholders’ equity	$	10,797,744		$	9,881,666			9	%

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share data)


	Three Months Ended September 30					Nine Months Ended September 30
	2013		2012			2013		2012
Interest income
Interest and fees on loans	$	114,453	$	100,830		$	324,053	$	286,895
Securities		682		1,125			2,394		3,635
Federal funds sold		22		2			41		7
Deposits in other banks		60		54			172		151

Total interest income		115,217		102,011			326,660		290,688
Interest expense
Deposits		3,699		3,378			10,172		10,332
Federal funds purchased		152		268			570		789
Repurchase agreements		4		3			13		10
Other borrowings		119		607			475		1,534
Subordinated notes		1,829		208			5,487		208
Trust preferred subordinated debentures		638		692			1,905		2,091

Total interest expense		6,441		5,156			18,622		14,964

Net interest income		108,776		96,855			308,038		275,724
Provision for credit losses		5,000		3,000			14,000		7,000

Net interest income after provision for credit losses		103,776		93,855			294,038		268,724
Non-interest income
Service charges on deposit accounts		1,659		1,684			5,109		4,912
Trust fee income		1,263		1,216			3,773		3,562
Bank owned life insurance (BOLI) income		423		549			1,384		1,658
Brokered loan fees		4,078		4,839			13,600		12,618
Swap fees		983		1,397			3,616		2,815
Other		2,025		867			5,358		4,639

Total non-interest income		10,431		10,552			32,840		30,204
Non-interest expense
Salaries and employee benefits		36,012		31,009			114,744		90,258
Net occupancy expense		4,342		3,653			12,334		10,936
Marketing		3,974		3,472			12,020		9,469
Legal and professional		3,937		4,916			12,584		12,237
Communications and technology		3,696		2,885			10,165		8,088
Allowance and other carrying costs for OREO		267		552			1,179		7,706
FDIC insurance assessment		4,357		1,332			6,134		4,497
Other		5,424		5,702			17,283		16,579

Total non-interest expense		62,009		53,521			186,443		159,770

Income from continuing operations before income taxes		52,198		50,886			140,435		139,158
Income tax expense		18,724		18,316			49,745		49,884

Income from continuing operations		33,474		32,570			90,690		89,274
Income (loss) from discontinued operations (after-tax)		2		(34	)		2		(31	)

Net income		33,476		32,536			90,692		89,243
Preferred stock dividends		2,437		—			4,956		—

Net income available to common shareholders	$	31,039	$	32,536		$	85,736	$	89,243

Basic earnings per common share:
Income from continuing operations	$	.76	$	.82		$	2.10	$	2.32
Net income	$	.76	$	.82		$	2.10	$	2.32
Diluted earnings per common share:
Income from continuing operations	$	.74	$	.80		$	2.05	$	2.25
Net income	$	.74	$	.80		$	2.05	$	2.25

TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE

(Dollars in thousands)


	3^rd Quarter			2^nd Quarter			1^st Quarter			4^th Quarter			3^rd Quarter
	2013			2013			2013			2012			2012
Reserve for loan losses:
Beginning balance	$	79,428		$	75,000		$	74,337		$	73,722		$	72,404
Loans charged-off:
Commercial		496			2,826			1,648			4,044			1,154
Real estate – term		13			26			105			—			284
Consumer		—			26			19			—			49
Leases		2			—			—			34			49

Total loans charged-off		511			2,878			1,772			4,078			1,536
Recoveries:
Commercial		233			348			397			350			132
Real estate – construction		—			—			—			—			10
Real estate – term		195			7			8			226			130
Consumer		19			15			30			7			18
Leases		18			140			121			21			16

Total recoveries		465			510			556			604			306

Net charge-offs		46			2,368			1,216			3,474			1,230
Provision for loan losses		4,624			6,796			1,879			4,089			2,548

Ending balance	$	84,006		$	79,428		$	75,000		$	74,337		$	73,722

Reserve for off-balance sheet credit losses:
Beginning balance	$	4,180		$	3,976		$	3,855		$	3,444		$	2,992
Provision for off-balance sheet credit losses		376			204			121			411			452

Ending balance	$	4,556		$	4,180		$	3,976		$	3,855		$	3,444

Total reserves for credit losses	$	88,562		$	83,608		$	78,976		$	78,192		$	77,166
Total provision for credit losses	$	5,000		$	7,000		$	2,000		$	4,500		$	3,000
Reserve to loans held for investment⁽²⁾		1.04	%		1.06	%		1.08	%		1.10	%		1.13	%
Reserve to average loans held for investment⁽²⁾		1.09	%		1.11	%		1.10	%		1.12	%		1.16	%
Net charge-offs to average loans⁽¹⁾⁽²⁾		.00	%		.13	%		.07	%		.21	%		.08	%
Net charge-offs to average loans for last twelve months⁽¹⁾⁽²⁾		.10	%		.12	%		.10	%		.10	%		.10	%
Total provision for credit losses to average loans⁽¹⁾⁽²⁾		.26	%		.39	%		.12	%		.27	%		.19	%
Combined reserves for credit losses to loans held for investment⁽²⁾		1.10	%		1.11	%		1.14	%		1.15	%		1.18	%
Non-performing assets (NPAs):
Non-accrual loans	$	35,737		$	38,450		$	43,424		$	55,833		$	57,275
Other real estate owned (OREO)⁽⁴⁾		12,805			13,053			14,426			15,991			19,079

Total	$	48,542		$	51,503		$	57,850		$	71,824		$	76,354

Non-accrual loans to loans⁽²⁾		.44	%		.51	%		.63	%		.82	%		.87	%
Total NPAs to loans plus OREO⁽²⁾		.60	%		.68	%		.83	%		1.06	%		1.16	%
Total NPAs to earning assets		.47	%		.49	%		.60	%		.71	%		.81	%
Reserve for loan losses to non-accrual loans		2.4x			2.1x			1.7x			1.3x			1.3x
Restructured loans	$	4,691		$	4,765		$	11,755		$	10,407		$	9,145
Loans past due 90 days and still accruing⁽³⁾	$	7,510		$	7,633		$	12,614		$	3,674		$	3,622
Loans past due 90 days to loans⁽²⁾		.09	%		.10	%		.18	%		.05	%		.06	%

(1)	Interim period ratios are annualized.

(2)	Excludes loans held for sale.

(3)

At September 30, 2013, loans past due 90 days and still accruing includes premium finance loans of $3.1 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)	At September 30, 2013, OREO balance is net of $4.6 million valuation allowance.

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

(Dollars in thousands)


	3^rd Quarter			2^nd Quarter		1^st Quarter			4^th Quarter			3^rd Quarter
	2013			2013		2013			2012			2012
Interest income
Interest and fees on loans	$	114,453		$	106,418	$	103,182		$	106,653		$	100,830
Securities		682			773		939			1,053			1,125
Federal funds sold		22			13		6			6			2
Deposits in other banks		60			60		52			57			54

Total interest income		115,217			107,264		104,179			107,769			102,011
Interest expense
Deposits		3,699			3,228		3,245			3,312			3,378
Federal funds purchased		152			206		212			190			268
Repurchase agreements		4			5		4			3			3
Other borrowings		119			143		213			615			607
Subordinated notes		1,829			1,829		1,829			1,829			208
Trust preferred subordinated debentures		638			633		634			665			692

Total interest expense		6,441			6,044		6,137			6,614			5,156

Net interest income		108,776			101,220		98,042			101,155			96,855
Provision for credit losses		5,000			7,000		2,000			4,500			3,000

Net interest income after provision for credit losses		103,776			94,220		96,042			96,655			93,855
Non-interest income
Service charges on deposit accounts		1,659			1,749		1,701			1,693			1,684
Trust fee income		1,263			1,269		1,241			1,260			1,216
Bank owned life insurance (BOLI) income		423			463		498			510			549
Brokered loan fees		4,078			4,778		4,744			4,978			4,839
Swap fees		983			981		1,652			2,093			1,397
Other		2,025			1,888		1,445			2,302			867

Total non-interest income		10,431			11,128		11,281			12,836			10,552
Non-interest expense
Salaries and employee benefits		36,012			45,191		33,541			31,198			31,009
Net occupancy expense		4,342			4,135		3,857			3,916			3,653
Marketing		3,974			4,074		3,972			3,980			3,472
Legal and professional		3,937			4,707		3,940			5,320			4,916
Communications and technology		3,696			3,347		3,122			3,070			2,885
Allowance and other carrying costs for OREO		267			482		430			1,369			552
FDIC insurance assessment		4,357			699		1,078			1,071			1,332
Litigation settlement expense		(908	)		—		—			4,000			—
Other		6,332			6,099		5,760			6,150			5,702

Total non-interest expense		62,009			68,734		55,700			60,074			53,521

Income from continuing operations before income taxes		52,198			36,614		51,623			49,417			50,886
Income tax expense		18,724			12,542		18,479			17,982			18,316

Income from continuing operations		33,474			24,072		33,144			31,435			32,570
Income (loss) from discontinued operations (after-tax)		2			1		(1	)		(6	)		(34	)

Net income		33,476			24,073		33,143			31,429			32,536
Preferred stock dividends		2,437			2,438		81			—			—

Net income available to common shareholders	$	31,039		$	21,635	$	33,062		$	31,429		$	32,536

TEXAS CAPITAL BANCSHARES, INC.

QUARTERLY FINANCIAL SUMMARY – UNAUDITED

Consolidated Daily Average Balances, Average Yields and Rates

Continuing Operations

(Dollars in thousands)


	3^rd Quarter 2013							2^nd Quarter 2013							1^st Quarter 2013							4^th Quarter 2012							3^rd 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	$	54,838	$	522		3.78	%	$	60,063	$	594		3.97	%	$	71,220	$	729		4.15	%	$	78,182	$	811		4.13	%	$	84,583	$	881		4.14	%
Securities – Non-taxable⁽²⁾		16,879		246		5.78	%		18,843		275		5.85	%		22,174		323		5.91	%		25,301		372		5.85	%		25,717		376		5.82	%
Federal funds sold and securities purchased under resale agreements		78,896		22		0.11	%		54,448		13		0.10	%		24,785		6		0.10	%		21,617		6		0.11	%		9,360		2		0.09	%
Deposits in other banks		88,717		60		0.27	%		91,177		60		0.26	%		78,718		52		0.27	%		69,886		57		0.32	%		64,859		54		0.33	%
Loans held for sale		2,362,118		22,547		3.79	%		2,406,246		22,440		3.74	%		2,362,646		22,641		3.89	%		2,658,092		26,440		3.96	%		2,432,027		24,433		4.00	%
Loans held for investment		7,731,901		91,906		4.72	%		7,152,323		83,978		4.71	%		6,842,766		80,541		4.77	%		6,662,817		80,213		4.79	%		6,313,263		76,397		4.81	%
Less reserve for loan losses		79,551		—		—			75,006		—		—			74,442		—		—			73,912		—		—			72,373		—		—

Loans, net of reserve		10,014,468		114,453		4.53	%		9,483,563		106,418		4.50	%		9,130,970		103,182		4.58	%		9,246,997		106,653		4.59	%		8,672,917		100,830		4.63	%

Total earning assets		10,253,798		115,303		4.46	%		9,708,094		107,360		4.44	%		9,327,867		104,292		4.53	%		9,441,983		107,899		4.55	%		8,857,436		102,143		4.59	%
Cash and other assets		383,968							402,898							401,692							427,299							399,428

Total assets	$	10,637,766						$	10,110,992						$	9,729,559						$	9,869,282						$	9,256,864

Liabilities and Stockholders’ Equity
Transaction deposits	$	794,630	$	102		0.05	%	$	1,051,199	$	233		0.09	%	$	1,003,735	$	253		0.10	%	$	941,947	$	244		0.10	%	$	803,776	$	247		0.12	%
Savings deposits		4,057,792		2,863		0.28	%		3,340,420		2,292		0.28	%		3,246,675		2,297		0.29	%		2,933,904		2,299		0.31	%		2,922,852		2,185		0.30	%
Time deposits		402,920		414		0.41	%		397,868		407		0.41	%		403,113		414		0.42	%		423,685		448		0.42	%		491,783		576		0.47	%
Deposits in foreign branches		357,532		320		0.36	%		340,713		296		0.35	%		335,265		281		0.34	%		362,580		321		0.35	%		431,412		370		0.34	%

Total interest bearing deposits		5,612,874		3,699		0.26	%		5,130,200		3,228		0.25	%		4,988,788		3,245		0.26	%		4,662,116		3,312		0.28	%		4,649,823		3,378		0.29	%
Other borrowings		539,767		275		0.20	%		727,158		354		0.20	%		1,041,573		429		0.17	%		1,725,129		808		0.19	%		1,639,953		878		0.21	%
Subordinated notes		111,000		1,829		6.54	%		111,000		1,829		6.61	%		111,000		1,829		6.68	%		111,000		1,829		6.56	%		12,065		208		6.86	%
Trust preferred subordinated debentures		113,406		638		2.23	%		113,406		633		2.24	%		113,406		634		2.27	%		113,406		665		2.33	%		113,406		692		2.43	%

Total interest bearing liabilities		6,377,047		6,441		0.40	%		6,081,764		6,044		0.40	%		6,254,767		6,137		0.40	%		6,611,651		6,614		0.40	%		6,415,247		5,156		0.32	%
Demand deposits		3,124,602							2,914,341							2,529,927							2,356,758							2,010,694
Other liabilities		89,640							91,608							90,538							86,308							80,810
Stockholders’ equity		1,046,477							1,023,279							854,327							814,565							750,113

Total liabilities and stockholders’ equity	$	10,637,766						$	10,110,992						$	9,729,559						$	9,869,282						$	9,256,864

Net interest income			$	108,862						$	101,316						$	98,155						$	101,285						$	96,987
Net interest margin						4.21	%						4.19	%						4.27	%						4.27	%						4.36	%

(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.

TEXAS CAPITAL BANCSHARES INC/TX - FORM 8-K - EX-99.1 - October 24, 2013

Attached files

TEXAS CAPITAL BANCSHARES INC/TX Reports