8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant
to Section 13 or 15(d) of the
Securities and Exchange Act of 1934

Date of Report (Date of earliest event reported): April 21, 2005 (April 20, 2005)

TEXAS CAPITAL BANCSHARES, INC.

(Name of Registrant)

Delaware
(State or other jurisdiction of
incorporation or organization) 000-30533
(Commission
File Number) 75-2679109
(I.R.S. Employer
Identification Number)

2100 McKinney Avenue, Suite 900, Dallas, Texas, U.S.A.
(Address of principal executive officers)

75201
(Zip Code)

214-932-6600
(Registrant’s telephone number,
including area code)

N/A
(Former address of principal executive offices)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition.

(a)   On April 20, 2005, Texas Capital Bancshares, Inc. issued a press release and made a concurrent public presentation regarding its operating and financial results for its fiscal quarter ended March 31, 2005. A copy of the press release is attached hereto as Exhibit 99.1. A copy of the presentation is attached hereto as Exhibit 99.2.

      The information in this report (including the exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.

(c)      Exhibits

99.1	Press Release dated April 20, 2005 of Texas Capital Bancshares, Inc., announcing its operating and financial results for its fiscal quarter ended March 31, 2005
99.2	Presentation given April 20, 2005 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2005

 
FORWARD-LOOKING STATEMENTS

      The information in this report contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities and Exchange Act of 1934. Such statements are based upon current expectations that involve risks and uncertainties that may be outside of our control. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue,” “strategy,” “believes,” “anticipates,” “plans,” “expects,” “intends,” and similar expressions are intended to identify forward-looking statements. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements.

SIGNATURE

      Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 21, 2005	TEXAS CAPITAL BANCSHARES, INC.
	By:	/s/ Peter B. Bartholow
		Peter B. Bartholow Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release dated April 20, 2005 of Texas Capital Bancshares, Inc., announcing its operating and financial results for its fiscal quarter ended March 31, 2005
99.2	Presentation given April 20, 2005 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2005

EX-99.1

EXHIBIT 99.1

For immediate release

April 20, 2005

MEDIA CONTACT
Tricia Linderman, 214.932.6798
tricia.linderman@texascapitalbank.com

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

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2005

Dallas, Texas – April 20, 2005 — Texas Capital Bancshares (Nasdaq: TCBI), the parent company of Texas Capital Bank, announced earnings for the first quarter of 2005.

•   Net income increased 34%

•   EPS increased 33%

•   Loans held for investment grew 28%

•   Total loans grew 26%

•   Demand deposits grew 31%

•   Total deposits grew 32%

“Continued strong growth in loans and deposits in the first quarter of 2005, along with exceptionally good credit quality, enabled us to report another great quarter,” said Jody Grant, Chairman and CEO. “We are on plan for the year and ended the quarter with accelerating loan growth and margin expansion.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

	Q1 2005			Q1 2004			% Change
OPERATING RESULTS
Net Income		5,276			3,937			34	%
Diluted EPS	$	.20		$	.15			33	%
ROA		.82	%		.71	%
ROE		10.89	%		8.96	%
Diluted Shares		26,623			26,076			2	%
BALANCE SHEET
Total Assets	$	2,636,920		$	2,233,135			18	%
Demand Deposits		405,162			309,927			31	%
Total Deposits		1,981,701			1,495,891			32	%
Loans Held for Investment		1,676,799			1,311,511			28	%
Total Loans		1,747,471			1,384,300			26	%
Stockholders’ Equity		194,511			182,587			7	%

Loans Held for Investment are stated net of unearned income.

1

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income of $5.3 million for the first quarter of 2005 compared to $3.9 million for the first quarter of 2004. On a fully diluted basis, earnings per share were $.20 for the three months ended March 31, 2005, compared to $.15 for the same quarter last year, representing an increase of 33 percent.

The first quarter of each year is uniquely impacted by certain events, such as the timing of FICA and other employment taxes generated by our incentive and compensation structure. The first quarter of 2005 was additionally influenced by a vesting of restricted stock triggered by the attainment of certain price targets of the company’s common stock. In aggregate, these events, plus the quarter being the shortest of the year, negatively impacted earnings by 3.5 cents per share on a linked quarter basis.

Return on average equity was 10.89 percent and return on average assets was .82 percent for the first quarter of 2005 compared to 8.96 percent and .71 percent, respectively, for the first quarter of 2004. The increase in net income and improvement in return on assets in 2005 are attributed to growth in net interest income which came from continued earning asset growth, as well as an improvement in net interest margin.

Net interest income was $21.7 million for the first quarter of 2005, compared to $16.6 million for the first quarter of 2004. The increase was due to an increase in average earning assets of $386.9 million over levels reported in the first quarter of 2004 and an improvement in the net interest margin. The increase in average earning assets included a $324.4 million increase in average loans held for investment (core loans) and an increase of $19.7 million in average securities. The average balance of loans held for sale increased to $82.0 million in the first quarter of 2005 from $61.2 million in the first quarter of 2004. The net interest margin in the first quarter of 2005 was 3.61 percent, a 37 basis point increase from the first quarter of 2004 and a 3 basis point increase from the fourth quarter of 2004. The improvement in the net interest margin resulted primarily from a 95 basis point increase in the yield on earning assets offset by a 76 basis point increase in the cost of interest bearing liabilities from the prior year.

Average interest bearing liabilities increased $271.7 million from the first quarter of 2004, which included a $357.9 million increase in interest bearing deposits offset by an $86.2 million decrease in other borrowings. For the same periods, the average balance of demand deposits increased to $363.4 million from $265.0 million.

Key measures of credit quality showed improvement during the first quarter. In the first quarter of 2005, net recoveries were $17,000, compared to net charge-offs of $466,000, or .15 percent of average loans, in the first quarter of 2004 and $233,000, or .06 percent of average loans, in the fourth quarter of 2004. The Company also reported that the ratio of non-performing loans to total loans decreased to .36 percent. Due to continued improvement in key measures of credit quality, the Company did not record a provision for possible loan losses during the first quarter of 2005, down from $200,000 in the fourth quarter of 2004 and $750,000 in the first quarter of 2004. Reserve coverage of losses, non-performing assets and classified loans remained at especially high levels. In management’s opinion, the reserve, which represents an allocation of total capital, is sufficient to cover all reasonably expected losses in the portfolio 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 first quarter of 2005 increased $864,000, or 26%, to $4.2 million from $3.3 million in the first quarter of 2004. The increase is primarily related to a $1.3 million increase in gains on sale of mortgage loans to $1.8 million from $463,000. Trust fee income increased $149,000 due to continued growth of trust

2

assets. Offsetting these increases was a decrease in cash processing fees, which were $587,000 lower in the first quarter of 2005 compared to the same period in 2004. These fees were related to a special project that occurred in the first quarters of 2002, 2003, and 2004.

Non-interest expense for the first quarter of 2005 increased $4.5 million, or 34 percent, to $17.9 million in the first quarter of 2005 from $13.3 million in the first quarter of 2004. The increase is primarily related to a $3.4 million increase in salaries and employee benefits to $11.5 million from $8.1 million. The increase in salaries and employee benefits resulted from an increase in the total number of employees related to general business growth, substantial additions to staffing for the Houston office, expansion of the residential mortgage lending division, and increased incentive compensation reflective of the Company’s performance.

ABOUT TEXAS CAPITAL BANCSHARES

Texas Capital Bancshares (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, Plano, 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.

3

TEXAS CAPITAL BANCSHARES, INC.

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

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2005			2004			2004			2004			2004
CONSOLIDATED STATEMENT OF OPERATIONS
Interest income	$	34,187		$	32,529		$	29,019		$	25,056		$	24,274
Interest expense		12,519			11,069			9,633			7,804			7,630
Net interest income		21,668			21,460			19,386			17,252			16,644
Provision for loan losses		–			200			375			363			750
Net interest income after provision for loan losses		21,668			21,260			19,011			16,889			15,894
Non-interest income		4,179			3,738			3,463			3,116			3,315
Non-interest expense		17,854			15,917			14,595			13,496			13,332
Income before income taxes		7,993			9,081			7,879			6,509			5,877
Income tax expense		2,717			3,054			2,643			2,149			1,940
Net income	$	5,276		$	6,027		$	5,236		$	4,360		$	3,937
Diluted EPS	$	.20		$	.23		$	.20		$	.17		$	.15
Diluted shares		26,622,813			26,457,466			26,263,714			26,140,080			26,075,754
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	2,636,920		$	2,611,163		$	2,487,371		$	2,399,603		$	2,233,135
Loans held for investment		1,676,799			1,564,578			1,485,156			1,364,106			1,311,511
Loans held for sale		70,672			119,537			79,010			58,058			72,789
Securities		754,154			804,544			820,661			783,234			752,861
Demand deposits		405,162			397,629			324,292			359,628			309,927
Total deposits		1,981,701			1,789,887			1,612,762			1,628,397			1,495,891
Other borrowings		431,682			594,991			653,168			569,404			524,502
Long-term debt		20,620			20,620			20,620			20,620			20,620
Stockholders’ equity		194,511			195,275			190,314			174,327			182,587
End of period shares		25,557,896			25,461,602			25,292,206			25,259,574			25,145,617
Book value (excluding securities gains/losses)		7.79			7.57			7.31			7.09			6.91
SELECTED FINANCIAL RATIOS
Net interest margin		3.61	%		3.58	%		3.38	%		3.24	%		3.24	%
Return on average assets		.82	%		.94	%		.85	%		.77	%		.71	%
Return on average equity		10.89	%		12.50	%		11.25	%		10.04	%		8.96	%
Non-interest expense to earning assets		2.94	%		2.63	%		2.53	%		2.52	%		2.58	%
Efficiency ratio		69.1	%		63.2	%		63.9	%		66.3	%		66.8	%
Tier 1 capital ratio		10.4	%		10.7	%		11.0	%		11.4	%		11.7	%
Total capital ratio		11.3	%		11.7	%		12.0	%		12.5	%		12.8	%
Tier 1 leverage ratio		8.3	%		8.3	%		8.3	%		8.6	%		8.7	%
ASSET QUALITY SUMMARY
Non-performing loans	$	6,065		$	6,059		$	7,016		$	10,816		$	13,203
Net charge-offs (recoveries)		(17	)		233			(78	)		96			466
Net charge-offs (recoveries) to average loans (1)		(.00	)%		.06	%		(.02	)%		.03	%		.15	%
Allowance to loans (1)		1.12	%		1.20	%		1.26	%		1.34	%		1.37	%
Non-performing loans to total loans (1)		.36	%		.39	%		.47	%		.79	%		1.01	%
Allowance to non-performing loans (1)		3.1x			3.1x			2.7x			1.7x			1.4x

(1)   Excludes loans held for sale.

4

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

							%
	March 31, 2005			March 31, 2004			Change
Assets
Cash and due from banks	$	86,846		$	55,203			57	%
Federal funds sold		–			4,620			(100	)%
Securities, available-for-sale		754,154			752,861			–
Loans held for sale		70,672			72,789			(3	)%
Loans held for investment (net of unearned income)		1,676,799			1,311,511			28	%
Less: Allowance for loan losses		18,715			18,011			4	%
Loans held for investment, net		1,658,084			1,293,500			28	%
Premises and equipment, net		4,581			4,635			(1	)%
Accrued interest receivable and other assets		61,087			48,031			27	%
Goodwill, net		1,496			1,496			–
Total assets	$	2,636,920		$	2,233,135			18	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	405,162		$	309,927			31	%
Interest bearing		1,276,529			1,131,598			13	%
Interest bearing in foreign branches		300,010			54,366			452	%
Total deposits		1,981,701			1,495,891			32	%
Accrued interest payable		3,125			2,226			40	%
Other liabilities		5,281			7,309			(28	)%
Federal funds purchased		147,684			90,203			64	%
Repurchase agreements		282,964			432,291			(35	)%
Other borrowings		1,034			2,008			(49	)%
Long-term debt		20,620			20,620			–
Total liabilities		2,442,409			2,050,548			19	%
Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares – 25,557,896 and 24,858,683 at March 31, 2005 and 2004, respectively		256			248
Series A-1 non-voting common stock, $.01 par value:
Issued shares – 286,934 at March 31, 2004		–			3
Additional paid-in capital		173,397			169,074
Retained earnings		25,323			4,424
Treasury stock (shares at cost: 84,274 at March 31, 2005 and 2004, respectively)		(573	)		(573	)
Deferred compensation		573			573
Accumulated other comprehensive income (loss)		(4,465	)		8,838
Total stockholders’ equity		194,511			182,587			7	%
Total liabilities and stockholders’ equity	$	2,636,920		$	2,233,135			18	%

5

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)

	Three Months Ended March 31
	2005		2004
Interest income
Interest and fees on loans	$	25,692	$	16,706
Securities		8,296		7,551
Federal funds sold		80		15
Deposits in other banks		119		2
Total interest income		34,187		24,274
Interest expense
Deposits		8,933		4,743
Federal funds purchased		861		320
Repurchase agreements		2,394		2,085
Other borrowings		4		226
Long-term debt		327		256
Total interest expense		12,519		7,630
Net interest income		21,668		16,644
Provision for loan losses		–		750
Net interest income after provision for loan losses		21,668		15,894
Non-interest income		781		857
Service charges on deposit accounts		781		857
Trust fee income		586		437
Cash processing fees		–		587
Bank owned life insurance (BOLI) income		288		321
Mortgage warehouse fees		219		238
Gain on sale of mortgage loans		1,765		463
Other		540		412
Total non-interest income		4,179		3,315
Non-interest expense
Salaries and employee benefits		11,529		8,130
Net occupancy expense		1,683		1,334
Marketing		699		534
Legal and professional		1,097		793
Communications and data processing		655		859
Franchise taxes		45		97
Other		2,146		1,585
Total non-interest expense		17,854		13,332
Income before income taxes		7,993		5,877
Income tax expense		2,717		1,940
Net income	$	5,276	$	3,937
Earnings per share:
Basic	$	.21	$	.16
Diluted	$	.20	$	.15

6

TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2005			2004			2004			2004			2004
Beginning balance	$	18,698		$	18,731		$	18,278		$	18,011		$	17,727
Loans charged-off:
Commercial		266			258			–			–			–
Real estate		–			–			–			–			–
Consumer		1			16			135			6			–
Leases		58			115			65			266			493
Total		325			389			200			272			493
Recoveries:
Commercial		282			6			142			–			–
Leases		60			150			136			176			27
Total recoveries		342			156			278			176			27
Net charge-offs (recoveries)		(17	)		233			(78	)		96			466
Provision for loan losses		–			200			375			363			750
Ending balance	$	18,715		$	18,698		$	18,731		$	18,278		$	18,011
Reserve to loans held for investment(2)		1.12	%		1.20	%		1.26	%		1.34	%		1.37	%
Reserve to average loans held for investment(2)		1.18	%		1.23	%		1.31	%		1.38	%		1.42	%
Net charge-offs (recoveries) to average loans (1)(2)		(.00	)%		.06	%		(.02	)%		.03	%		.15	%
Provision for loan losses to average loans (1) (2)		–			.05	%		.10	%		.11	%		.24	%
Recoveries to total charge-offs		105.2	%		40.1	%		139.0	%		64.7	%		5.5	%
Reserve as a multiple of net charge-offs		N/M			80.2x			N/M			190.4x			38.7x
Non-performing loans:
Loans past due (90 days) (2)	$	18		$	209		$	117		$	4,423		$	6,250
Non-accrual		6,047			5,850			6,899			6,393			6,953
Total	$	6,065		$	6,059		$	7,016		$	10,816		$	13,203
Reserve as a percent of non-performing loans (2)		3.1x			3.1x			2.7x			1.7x			1.4x

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.

7

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands)

	1st Quarter		4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
	2005		2004		2004		2004		2004
Interest income
Interest and fees on loans	$	25,692	$	23,941	$	20,455	$	17,498	$	16,706
Securities		8,296		8,567		8,546		7,536		7,551
Federal funds sold		80		17		15		18		15
Deposits in other banks		119		4		3		4		2
Total interest income		34,187		32,529		29,019		25,056		24,274
Interest expense
Deposits		8,933		7,315		6,231		4,948		4,743
Federal funds purchased		861		740		437		294		320
Repurchase agreements		2,394		2,631		2,572		2,250		2,085
Other borrowings		4		80		112		56		226
Long-term debt		327		303		281		256		256
Total interest expense		12,519		11,069		9,633		7,804		7,630
Net interest income		21,668		21,460		19,386		17,252		16,644
Provision for loan losses		–		200		375		363		750
Net interest income after provision for loan losses		21,668		21,260		19,011		16,889		15,894
Non-interest income
Service charges on deposit accounts		781		797		825		891		857
Trust fee income		586		559		482		454		437
Cash processing fees		–		–		–		–		587
Bank owned life insurance (BOLI) income		288		292		346		329		321
Mortgage warehouse fees		219		243		241		274		238
Gain on sale of mortgage loans		1,765		1,145		1,083		729		463
Other		540		702		486		439		412
Total non-interest income		4,179		3,738		3,463		3,116		3,315
Non-interest expense
Salaries and employee benefits		11,529		9,786		8,914		7,964		8,130
Net occupancy expense		1,683		1,577		1,443		1,341		1,334
Marketing		699		837		669		569		534
Legal and professional		1,097		814		755		779		793
Communications and data processing		655		540		764		995		859
Franchise taxes		45		41		52		56		97
Other		2,146		2,322		1,998		1,792		1,585
Total non-interest expense		17,854		15,917		14,595		13,496		13,332
Income before income taxes		7,993		9,081		7,879		6,509		5,877
Income tax expense		2,717		3,054		2,643		2,149		1,940
Net income	$	5,276	$	6,027	$	5,236	$	4,360	$	3,937

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

	1st Quarter 2005							4th Quarter 2004							3rd Quarter 2004							2nd Quarter 2004							1st Quarter 2004
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense (1)(2)		Rate			Balance		Expense (1)(2)		Rate			Balance		Expense (1)(2)		Rate			Balance		Expense (1)(2)		Rate			Balance		Expense (1)(2)		Rate
Assets
Securities – Taxable	$	729,907	$	7,861		4.37	%	$	765,943	$	8,168		4.24	%	$	776,302	$	8,337		4.27	%	$	748,343	$	7,396		3.97	%	$	745,042	$	7,442		4.02	%
Securities – Non-taxable		48,715		669		5.57	%		44,907		614		5.44	%		24,925		322		5.14	%		17,664		215		4.90	%		13,924		168		4.85	%
Federal funds sold		12,377		80		2.62	%		3,159		17		2.14	%		4,192		15		1.42	%		7,686		18		0.94	%		6,058		15		1.00	%
Deposits in other banks		17,858		119		2.70	%		773		4		2.06	%		1,128		3		1.06	%		995		4		1.62	%		829		2		0.97	%
Loans held for sale		81,956		2,281		11.29	%		94,510		2,191		9.22	%		70,730		1,765		9.93	%		68,922		1,456		8.50	%		61,177		1,157		7.61	%
Loans		1,590,207		23,411		5.97	%		1,516,672		21,750		5.71	%		1,432,860		18,690		5.19	%		1,326,066		16,042		4.87	%		1,265,840		15,549		4.94	%
Less reserve for loan losses		18,930		–		–			18,870		–		–			18,440		–		–			18,205		–		–			17,720		–		–
Loans, net of reserve		1,653,233		25,692		6.30	%		1,592,312		23,941		5.98	%		1,485,150		20,455		5.48	%		1,376,783		17,498		5.11	%		1,309,297		16,706		5.13	%
Total earning assets		2,462,090		34,421		5.67	%		2,407,094		32,744		5.41	%		2,291,697		29,132		5.06	%		2,151,471		25,131		4.70	%		2,075,150		24,333		4.72	%
Cash and other assets		148,557							137,702							157,255							138,399							146,414
Total assets	$	2,610,647						$	2,544,796						$	2,448,952						$	2,289,870						$	2,221,564
Liabilities and Stockholders’ Equity
Transaction deposits	$	107,162	$	255		0.97	%	$	104,621	$	230		0.87	%	$	99,245	$	150		0.60	%	$	95,031	$	140		0.59	%	$	88,635	$	132		.60	%
Savings deposits		613,391		3,147		2.08	%		587,020		2,548		1.73	%		581,616		2,005		1.37	%		560,182		1,639		1.18	%		504,530		1,499		1.19	%
Time deposits		765,497		5,531		2.93	%		658,447		4,537		2.74	%		631,115		4,076		2.57	%		566,369		3,169		2.25	%		534,981		3,112		2.34	%
Total interest bearing deposits		1,486,050		8,933		2.44	%		1,350,088		7,315		2.16	%		1,311,976		6,231		1.89	%		1,221,582		4,948		1.63	%		1,128,146		4,743		1.69	%
Other borrowings		534,773		3,259		2.47	%		635,552		3,451		2.16	%		617,394		3,121		2.01	%		574,942		2,600		1.82	%		620,982		2,631		1.70	%
Long-term debt		20,620		327		6.43	%		20,620		303		5.85	%		20,620		281		5.42	%		20,620		256		4.99	%		20,620		256		4.99	%
Total interest bearing liabilities		2,041,443		12,519		2.49	%		2,006,260		11,069		2.19	%		1,949,990		9,633		1.97	%		1,817,144		7,804		1.73	%		1,769,748		7,630		1.73	%
Demand deposits		363,398							335,914							302,338							289,973							265,039
Other liabilities		9,241							10,732							11,395							8,047							10,013
Stockholders’ equity		196,565							191,890							185,229							174,706							176,764
Total liabilities and stockholders’ equity	$	2,610,647						$	2,544,796						$	2,448,952						$	2,289,870						$	2,221,564
Net interest income			$	21,902						$	21,675						$	19,499						$	17,327						$	16,703
Net interest income to earning assets						3.61	%						3.58	%						3.38	%						3.24	%						3.24	%

(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

EX-99.2

Exhibit 99.2

Texas Capital Bancshares, Inc. Earnings Release April 20, 2005

Certain matters discussed on this call may contain 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 our annual report on Form 10-K for the year ended December 31, 2004, and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

OPENING COMMENTS Financial highlights Net income for Q1-2005 of $5.3 million EPS for Q1-2005 of $0.20 Continued growth of more than 20% in loans and deposits over Q1-2004 Business remains exceptionally well-positioned for 2005 On plan and on target to meet full year net income of $26.5 million to $28 million Strengthened credit quality Continued growth and build-out in lines of business Houston Residential Mortgage Lending

Net income growth to $5.3 million Increase of 34% from Q1-2004 - decrease of 12% on linked-quarter basis EPS at $0.20 up 33% from Q1-2004 - decrease of 13% on linked-quarter basis Growth in core and total loans (average balances) 26% growth over Q1-2004 - increase of 5% on linked-quarter basis March 31 outstandings 5% greater than Q1-2005 Average Increase of net interest margin to 3.61% Increase of 37 bp over Q1-2004 and 3 bp from Q4-2004 Linked-quarter comparison understates favorable impact of interest sensitivity - normalized NIM closer to 3.70% and increasing through end of quarter Much improved earning asset mix at end of quarter Interest sensitivity increase resulting from exceptional growth in core loans and contraction of securities portfolio PERFORMANCE SUMMARY

MARGIN ANALYSIS A number of variables during Q1-2005 affected expansion of the net interest margin and net interest income. Growth of deposits during the quarter, exceptional growth in core loans near the end of the quarter and seasonal reduction in loans held for sale reduced net interest income and margin by approximately 5 bps. Typically quarterly margin has on average been affected by 1 to 2 bps by "non- interest variables" that include: Fee adjustments, either accelerated or reduced Prepayment penalties; premium amortization for securities and loans Experienced unusual change from "normalized" non-interest variables in Q1-2005 Adverse effects in Q1 of 5+ bps below normalized NIM No expectation of similar impact in any quarter of 2005 Adjusting for these factors, NIM was approximately 3.70% for the quarter Expect more normal trend for Q2 Excess liquidity position absorbed by growth in loans Full benefit of late-March increase in fed funds rate

Q4-2004 TO Q1-2005 COMPARISON (In Thousands) The numbers below represent significant differences between Q4-2004 and Q1-2005. All are in the normal course of business, but can significantly affect quarter-to-quarter comparisons. EPS impact of the following is $0.035. Pretax Increase from Q4-2004 Restricted stock vesting $ 300 FICA and other employment taxes* 640 Difference in days* 480 Total $ 1,420 * Always affect Q1 as compared to Q4.

FINANCIAL REVIEW

INCOME STATEMENT In Thousands Q1-05 Q4-04 Q3-04 Q2-04 Q1-04 Net interest income $ 21,668 $ 21,460 $ 19,386 $ 17,252 $ 16,644 Provision for loan losses - 200 375 363 750 Net interest income after provision for loan losses 21,668 21,260 19,011 16,889 15,894 Non-interest income 4,179 3,738 3,463 3,116 3,315 Non-interest expense 17,854 15,917 14,595 13,496 13,332 Income before income taxes 7,993 9,081 7,879 6,509 5,877 Income tax expense 2,717 3,054 2,643 2,149 1,940 Net income $ 5,276 $ 6,027 $ 5,236 $ 4,360 $ 3,937 Diluted EPS $ .20 $ .23 $ .20 $ .17 $ .15

PERFORMANCE DRIVERS & MODEL Q1-2005 Q4-2004 Q3-2004 Q2-2004 Q1-2004 Net interest margin 3.61% 3.58% 3.38% 3.24% 3.24% Non-interest income 0.69% 0.62% 0.60% 0.58% 0.64% Net revenue 4.30% 4.20% 3.98% 3.82% 3.88% Loan Loss Provision - (0.03)% (0.07)% (0.07)% (0.15)% Non-interest expense (2.94)% (2.63)% (2.53)% (2.52)% (2.58)% Pre-tax net/EA 1.36% 1.54% 1.38% 1.23% 1.15% FIT (0.45)% (0.50)% (0.46)% (0.40)% (0.38)% Net income/EA 0.91% 1.04% 0.92% 0.83% 0.77% Key Ratios EA/TA 94.3% 94.6% 93.6% 94.0% 93.4% ROA 0.82% 0.94% 0.85% 0.77% 0.71% Leverage 13.3 13.3 13.2 12.7 12.6 ROE 10.9% 12.5% 11.3% 10.0% 9.0% Efficiency 69.1% 63.2% 63.9% 66.3% 66.8%

FINANCIAL SUMMARY In Thousands Period End Period End Period End Q1 2005 Q4 2004 Q1 2004 Q1/Q4 % Change YOY % Change Loans held for investment $1,676,799 $1,564,578 $1,311,511 7% 28% Loans held for sale 70,672 119,537 72,789 (41)% (3)% Total loans 1,747,471 1,684,115 1,384,300 4% 26% Securities 754,154 804,544 752,861 (6)% 0% Demand deposits 405,162 397,629 309,927 2% 31% Total Deposits 1,981,701 1,789,887 1,495,891 11% 32% Total Assets 2,636,920 2,611,163 2,233,135 1% 18% Quarterly net income 5,276 6,027 3,937 (12)% 34% Quarterly diluted EPS .20 .23 .15 (13)% 33%

FINANCIAL SUMMARY In Thousands Averages Averages Averages Q1 2005 Q4 2004 Q1 2004 Q1/Q4 % Change YOY % Change Loans held for investment $1,590,207 $1,516,672 $1,265,840 5% 26% Loans held for sale 81,956 94,510 61,177 (13)% 34% Total loans 1,672,163 1,611,182 1,327,017 4% 26% Securities 778,622 810,850 758,966 (4)% 3% Demand deposits 363,398 335,914 265,039 8% 37% Total Deposits 1,849,448 1,686,002 1,393,185 10% 33% Total Assets 2,610,647 2,544,796 2,221,564 3% 18%

AVERAGE BALANCES, YIELDS, AND RATES In Thousands Q1 2005 Q1 2005 Q4 2004 Q4 2004 Q1 2004 Q1 2004 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 778,622 4.44% $ 810,850 4.31% $ 758,966 4.03% Fed funds sold & liquidity investments 30,235 2.67% 3,932 2.12% 6,887 0.99% Loans held for sale 81,956 11.29% 94,510 9.22% 61,177 7.61% Loans held for investment 1,590,207 5.97% 1,516,672 5.71% 1,265,840 4.94% Total earning assets 2,462,090 5.67% 2,407,094 5.41% 2,075,150 4.72% Total assets $2,610,647 $2,544,796 $2,221,564 Liabilities and Stockholders' Equity Total interest bearing deposits $1,486,050 2.44% $1,350,088 2.16% $1,128,146 1.69% Other borrowings 534,773 2.47% 635,552 2.16% 620,982 1.70% Long-term debt 20,620 6.43% 20,620 5.85% 20,620 4.99% Total interest bearing liabilities 2,041,443 2.49% 2,006,260 2.19% 1,769,748 1.73% Demand deposits 363,398 335,914 265,039 Stockholders' equity 196,565 191,890 176,764 Total liabilities and stockholders' equity $2,610,647 1.94% $2,544,796 1.73% $2,221,564 1.38% Net interest income to earning assets 3.61% 3.58% 3.24%

DEPOSIT AND LOAN GROWTH Core Loans* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 50% Total Deposit CAGR: 24% Core Loan CAGR: 26% 2000 2001 2002 2003 2004 Q1-2005 Core Loans 625 855 1003 1230 1565 1677 2000 2001 2002 2003 2004 Q1-2005 Demand Deposits 72 136 239 302 398 405 Interest Bearing Deposits 723 750 958 1143 1392 1577 2000 2001 2002 2003 2004 ($ in millions) Q1-2005 795 886 1,197 1,445 1,790 1,982

REVENUE AND EXPENSE GROWTH Operating Revenue CAGR: 33% Net Interest Income CAGR: 31% Non-interest Income CAGR: 54% Non-interest Expense CAGR: 15% Net Interest Income Non-interest Income Non-interest Expense 2000 2001 2002 2003 2004 Q1-2005 Non Interest Expense 35158 29432 35370 48430 57340 71416 2000 2001 2002 2003 2004 Q1-2005 Net Interest Income 22839 35055 42246 53155 74742 86672 Non Interest Income 1957 5983 8625 10892 13632 16716 2000 2001 2002 2003 2004 ($ in millions) 2005* 24,796 41,038 50,871 64,047 88,374 103,388 * 2005 annualized through 3/31/2005.

56% 7% 4% 36% 14% 8% 42% 33% INTEREST SENSITIVITY POSITION 56% 7% 4% 36% 14% 8% 42% 33% Assets Liabilities Data : 1st Qtr Average Balance Sheet Asset Sensitive Differential: Approx. $574 million Assets Liabilities 0.58 0.38 0.3 0.15 0.06 0.07 0.07 0.4 Floating Rate Other Loans Securities Loans Fixed Rate Floating Rate Money Market & Fed Funds Non-Interest Checking Fixed Rate Capital Term Deposits & Rev Repos Asset Sensitive GAP

Credit quality improved during 2004 and remains superior Net recoveries of $17,000 in Q1-2005 NPL's decreased to 0.36% of core loans Substantial reduction in classified assets Increase in unallocated reserve Total reserve at $18.7 million are exceptionally strong as measured by coverage of NCO's and NPL's Total reserve 1.18% of average core loans; 1.12% of YE core loans Multiple of 11.4X trailing 2-year NCO's and 3.1X NPL's Multiple of 2.6X NCO's from inception CREDIT QUALITY

CREDIT QUALITY Allowance / Loans (1) 1.12% 1.20% 1.44% 1.45% 1.47% NPL to Loans (1) .36% .39% .83% .29% .75% Allowance to NPL 3.1x 3.1x 1.7x 5.0x 1.1x (1) Excludes loans held for sale. (1) Excludes loans held for sale. Net Charge-offs / Average Loans Q1-2005 2004 2003 2002 2001

CLOSING COMMENTS Confirming guidance for 2005 Traction in market clearly reflected in results Expect continuation of growth trends with core loan growth exceeding 20% Expansion of net interest margin Growth in non-interest income Growth of RML income, net of related commissions Increase in Wealth Management and Treasury Management fees Continued investment in business strategy Credit quality maintained at high standards Net income of $26.5 to $28 million Improvement in ROA and ROE

Q & A