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, 2006 (April 19, 2006)

TEXAS CAPITAL BANCSHARES, INC.

(Name of Registrant)

Delaware	000-30533	75-2679109
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(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 19, 2006, 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, 2006. 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 19, 2006 of Texas Capital Bancshares, Inc., announcing its operating and financial results for its fiscal quarter ended March 31, 2006
		99.2	Presentation given April 19, 2006 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2006

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, 2006	TEXAS CAPITAL BANCSHARES, INC.
	By:	/s/ Peter B. Bartholow
		Peter B. Bartholow
		Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description
99.1 99.2	Press Release dated April 19, 2006 of Texas Capital Bancshares, Inc., announcing its operating and financial results for its fiscal quarter ended March 31, 2006 Presentation given April 19, 2006 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2006

EX-99.1

EXHIBIT 99.1

For immediate release
April 19, 2006

MEDIA CONTACT
Patty Sullivan, 214.932.6850
patty.sullivan@texascapitalbank.com

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

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2006

Dallas, Texas — April 19, 2006 — Texas Capital Bancshares (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings for the first quarter of 2006.

• Net income increased 26%

• EPS increased 25%

• Loans held for investment grew 35%

• Total loans grew 37%

• Demand deposits grew 19%

• Total deposits grew 24%

“We have begun 2006 with exceptional growth in loans and continued expansion in our business,” said Jody Grant, Chairman and CEO. “I am further pleased by the results of some of our newer endeavors and expect to see additional improvement going forward. The momentum reflected in the first quarter’s results gives me great confidence in our ability to achieve our goals for all of 2006.”

FINANCIAL SUMMARY
(dollars and shares in thousands)

	Q1 2006			Q1 2005			% Change
OPERATING RESULTS
Net Income	$	6,643		$	5,276			26	%
Diluted EPS	$	.25		$	.20			25	%
ROA		.88	%		.82	%
ROE		12.22	%		10.89	%
Diluted Shares		26,568			26,623
BALANCE SHEET
Total Assets	$	3,192,932		$	2,636,920			21	%
Demand Deposits		481,410			405,162			19	%
Total Deposits		2,463,719			1,981,701			24	%
Loans Held for Investment		2,263,007			1,676,799			35	%
Total Loans		2,393,292			1,747,471			37	%
Stockholders’ Equity		221,766			194,511			14	%

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income of $6.6 million for the first quarter of 2006 compared to $5.3 million for the first quarter of 2005. On a fully diluted basis, earnings per share were $.25 for the three months ended March 31, 2006, compared to $.20 for the same quarter last year, representing an increase of 25 percent. On a fully diluted basis, assuming FAS 123R had been adopted at March 31, 2005, earnings per share would have increased 32 percent from $.19 for the three months ended March 31, 2005, to $.25 for the three months ended March 31, 2006.

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 2006 was additionally influenced by the adoption of FAS 123R, and 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, adversely affected operating results by 4.7 cents per share on a linked-quarter basis.

Return on average equity was 12.22 percent and return on average assets was .88 percent for the first quarter of 2006 compared to 10.89 percent and .82 percent, respectively, for the first quarter of 2005. The increase in net income and improvement in return on assets in 2006 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 $28.7 million for the first quarter of 2006, compared to $21.7 million for the first quarter of 2005. The increase was due to an increase in average earning assets of $409.1 million over levels reported in the first quarter of 2005 and an improvement in the net interest margin. The increase in average earning assets included a $578.2 million increase in average loans held for investment and an increase of $20.1 million in average loans held for sale, offset by a decrease of $162.3 million in average securities. The net interest margin in the first quarter of 2006 was 4.09 percent, a 48 basis point increase from the first quarter of 2005 and a 4 basis point decrease from the fourth quarter of 2005. The improvement in the net interest margin for the first quarter of 2006 as compared to the first quarter of 2005 resulted primarily from a 182 basis point increase in the yield on earning assets offset by a 159 basis point increase in the cost of interest bearing liabilities. Strong loan growth funded by interest-bearing liabilities resulted in the 4 basis point decline in the linked quarter net interest margin.

Average interest bearing liabilities increased $350.9 million from the first quarter of 2005, which included a $479.1 million increase in interest bearing deposits offset by a $153.9 million decrease in other borrowings. For the same periods, the average balance of demand deposits increased to $445.0 million from $363.4 million.

Key measures of credit quality remained very favorable during the first quarter of 2006. In the first quarter of 2006, net recoveries were $12,000, compared to net recoveries of $17,000, in the first quarter of 2005 and net charge-offs of $11,000 in the fourth quarter of 2005. Non-accrual loans were $6.0 million, or .27 percent of loans, at the end of the first quarter of 2006, compared to $6.0 million, or .36 percent of loans, at the end of first quarter of 2005. Loans 90 days past due and still accruing were $2.8 million at the end of the first quarter of 2006 and included $2.5 million in premium finance loans, compared to $18,000 at the end of the first quarter of 2005. The premium finance loans are secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take up to 180 days from the cancellation date. Due to the experience in loan recoveries and other factors considered in the methodology for assessing the

adequacy of the allowance for possible loan losses, the Company did not record a provision for possible loan losses in the first quarter of 2006. Reserve coverage of historical losses, non-performing assets and classified loans remains strong. In management’s opinion, the reserve 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 2006 increased $1.9 million, or 45 percent, to $6.1 million from $4.2 million in the first quarter of 2005. The increase is primarily related to a $610,000 increase in insurance commission income from $113,000 to $723,000 due to increased focus on the insurance business. Trust fee income increased $257,000 due to continued growth of trust assets.

Non-interest expense for the first quarter of 2006 increased $6.8 million, or 38 percent, to $24.7 million from $17.9 million in the first quarter of 2005. The increase is primarily related to a $3.9 million increase in salaries and employee benefits to $15.4 million from $11.5 million. The increase in salaries and employee benefits resulted from an increase in the total number of employees related to general business growth, addition of the premium finance business, the continued expansion of the residential mortgage lending division, increased focus on the insurance business and increased compensation reflective of the Company’s performance. Occupancy expense increased $1.1 million from $1.7 million to $2.8 million in the first quarter of 2006 relating to our general business growth, continued growth in the residential mortgage lending division, and depreciation related to expansion of our operating lease portfolio.

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 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 (UNAUDITED)
(Dollars in thousands except per share data)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2006			2005			2005			2005			2005
CONSOLIDATED STATEMENT OF OPERATIONS
Interest income	$	52,807		$	49,195		$	45,146		$	39,167		$	34,187
Interest expense		24,086			20,734			18,188			14,683			12,519
Net interest income		28,721			28,461			26,958			24,484			21,668
Provision for loan losses		—			—			—			—			—
Net interest income after provision for loan losses		28,721			28,461			26,958			24,484			21,668
Non-interest income		6,072			5,986			5,790			4,694			4,179
Non-interest expense		24,713			22,736			21,249			19,190			17,854
Income before income taxes		10,080			11,711			11,499			9,988			7,993
Income tax expense		3,437			3,966			3,915			3,401			2,717
Net income	$	6,643		$	7,745		$	7,584		$	6,587		$	5,276
Diluted EPS	$	.25		$	.29		$	.28		$	.25		$	.20
Diluted shares		26,567,893			26,736,858			26,676,335			26,543,191			26,622,813
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	3,192,932		$	3,042,225		$	2,932,662		$	2,818,039		$	2,636,920
Loans held for investment		2,263,007			2,075,961			1,935,818			1,805,630			1,676,799
Loans held for sale		130,285			111,178			118,929			120,708			70,672
Securities		604,987			630,482			674,792			725,554			754,154
Demand deposits		481,410			512,294			457,333			475,516			405,162
Total deposits		2,463,719			2,495,179			2,312,345			1,971,005			1,981,701
Other borrowings		441,991			265,721			366,501			610,254			431,682
Long-term debt		46,394			46,394			20,620			20,620			20,620
Stockholders’ equity		221,766			215,523			212,318			205,880			194,511
End of period shares		25,854,651			25,771,718			25,672,369			25,616,829			25,557,896
Book value (excluding securities gains/losses)	$	8.94		$	8.68		$	8.36		$	8.06		$	7.79
SELECTED FINANCIAL RATIOS
Net interest margin		4.09	%		4.13	%		3.97	%		3.88	%		3.61	%
Return on average assets		.88	%		1.04	%		1.04	%		.97	%		.82	%
Return on average equity		12.22	%		14.53	%		14.41	%		13.14	%		10.89	%
Non-interest expense to earning assets		3.49	%		3.28	%		3.10	%		3.01	%		2.94	%
Efficiency ratio		71.0	%		66.0	%		64.9	%		65.8	%		69.1	%
Tier 1 capital ratio		9.6	%		10.1	%		9.5	%		9.9	%		10.4	%
Total capital ratio		10.3	%		10.8	%		10.3	%		10.7	%		11.3	%
Tier 1 leverage ratio		8.6	%		8.7	%		7.8	%		8.1	%		8.3	%
ASSET QUALITY SUMMARY
Net charge-offs (recoveries)	$	(12	)	$	11		$	(134	)	$	(59	)	$	(17	)
Net charge-offs (recoveries) to average loans(1)		(.00	)%		.00	%		(.03	)%		(.01	)%		(.00	)%
Non-accrual loans	$	6,032		$	5,657		$	1,353		$	5,718		$	6,047
Loans past due (90 days)	$	2,824		$	2,795		$	941		$	—		$	18
Non-accrual loans to loans(1)		.27	%		.27	%		.07	%		.32	%		.36	%
Loans past due 90 days to loans(1)		.12	%		.13	%		.05	%		.00	%		.00	%
Non-performing loans to loans(1)		.39	%		.41	%		.12	%		.32	%		.36	%
Reserve to loans(1)		.84	%		.91	%		.98	%		1.04	%		1.12	%

(1) Excludes loans held for sale.

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TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	March 31, 2006			March 31, 2005			% Change
Assets
Cash and due from banks	$	108,429		$	86,846			25	%
Securities, available-for-sale		604,987			754,154			(20	)%
Loans held for sale		130,285			70,672			84	%
Loans held for investment (net of unearned income)		2,263,007			1,676,799			35	%
Less: Allowance for loan losses		18,909			18,715			1	%
Loans held for investment, net		2,244,098			1,658,084			35	%
Premises and equipment, net		21,155			4,581			362	%
Accrued interest receivable and other assets		71,573			61,087			17	%
Goodwill, net		12,405			1,496			729	%
Total assets	$	3,192,932		$	2,636,920			21	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	481,410		$	405,162			19	%
Interest bearing		1,478,730			1,276,529			16	%
Interest bearing in foreign branches		503,579			300,010			68	%
Total deposits		2,463,719			1,981,701			24	%
Accrued interest payable		4,857			3,125			55	%
Other liabilities		14,205			5,281			169	%
Federal funds purchased		263,187			147,684			78	%
Repurchase agreements		103,642			282,964			(63	)%
Other borrowings		75,162			1,034			7,169	%
Long-term debt		46,394			20,620			125	%
Total liabilities		2,971,166			2,442,409			22	%
Stockholders’ equity:
Common stock, $.01 par value:
Authorized shares — 100,000,000 Issued shares — 25,854,651 and 25,557,896 at March 31, 2006 and 2005, respectively		259			256
Additional paid-in capital		177,014			173,397
Retained earnings		53,882			25,323
Treasury stock (shares at cost: 84,274 at March 31, 2006 and 2005, respectively)		(573	)		(573	)
Deferred compensation		573			573
Accumulated other comprehensive income (loss)		(9,389	)		(4,465	)
Total stockholders’ equity		221,766			194,511			14	%
Total liabilities and stockholders’ equity	$	3,192,932		$	2,636,920			21	%

5

TEXAS CAPITAL BANCSHARES, INC.

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

	Three Months Ended March 31
	2006		2005
Interest income
Interest and fees on loans	$	45,941	$	25,692
Securities		6,831		8,296
Federal funds sold		24		80
Deposits in other banks		11		119
Total interest income		52,807		34,187
Interest expense
Deposits		19,307		8,933
Federal funds purchased		2,195		861
Repurchase agreements		1,202		2,394
Other borrowings		554		4
Long-term debt		828		327
Total interest expense		24,086		12,519
Net interest income		28,721		21,668
Provision for loan losses		—		—
Net interest income after provision for loan losses		28,721		21,668
Non-interest income
Service charges on deposit accounts		856		781
Trust fee income		843		586
Bank owned life insurance (BOLI) income		286		288
Brokered loan fees		369		219
Gain on sale of mortgage loans		1,623		1,765
Insurance commissions		723		113
Other		1,372		427
Total non-interest income		6,072		4,179
Non-interest expense
Salaries and employee benefits		15,452		11,529
Net occupancy expense		2,752		1,683
Marketing		799		699
Legal and professional		1,468		1,097
Communications and data processing		684		655
Franchise taxes		61		45
Other		3,497		2,146
Total non-interest expense		24,713		17,854
Income before income taxes		10,080		7,993
Income tax expense		3,437		2,717
Net income	$	6,643	$	5,276
Earnings per share:
Basic	$	.26	$	.21
Diluted	$	.25	$	.20

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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
	2006			2005			2005			2005			2005
Beginning balance	$	18,897		$	18,908		$	18,774		$	18,715		$	18,698
Loans charged-off:
Commercial		—			60			14			70			266
Real estate		—			—			—			28			—
Consumer		3			8			32			52			1
Leases		10			6			—			2			58
Total		13			74			46			152			325
Recoveries:
Commercial		4			3			115			171			282
Consumer		1			—			—			—			—
Leases		20			60			65			40			60
Total recoveries		25			63			180			211			342
Net charge-offs (recoveries)		(12	)		11			(134	)		(59	)		(17	)
Provision for loan losses		—			—			—			—			—
Ending balance	$	18,909		$	18,897		$	18,908		$	18,774		$	18,715
Reserve to loans held for investment (2)		.84	%		.91	%		.98	%		1.04	%		1.12	%
Reserve to average loans held for investment (2)		.87	%		.94	%		1.00	%		1.07	%		1.18	%
Net charge-offs (recoveries) to average loans (1) (2)		(.00	)%		.00	%		(.03	)%		(.01	)%		(.00	)%
Provision for loan losses to average loans (1) (2)		—			—			—			—			—
Recoveries to gross charge-offs		192.31	%		85.14	%		391.3	%		138.8	%		105.2	%
Reserve as a multiple of net charge-offs		N/M			1,717.9	x		N/M			N/M			N/M
Non-performing loans:
Loans past due (90 days) (3)	$	2,824		$	2,795		$	941		$	—		$	18
Non-accrual		6,032			5,657			1,353			5,718			6,047
Total	$	8,856		$	8,452		$	2,294		$	5,718		$	6,065
Reserve as a percent of non-performing loans		2.1	x		2.2	x		8.2	x		3.3	x		3.1	x
Reserve as a percent of non-accrual loans		3.1	x		3.3	x		14.0	x		3.3	x		3.1	x

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At March 31, 2006, loans past due 90 days and still accruing includes premium finance loans of $2.5 million (90% of total). These loans are secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take up to 180 days from the cancellation date.

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TEXAS CAPITAL BANCSHARES, INC.

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

	1st Quarter		4th Quarter		3rd Quarter		2nd Quarter		1st Quarter
	2006		2005		2005		2005		2005
Interest income
Interest and fees on loans	$	45,941	$	41,915	$	37,363	$	31,255	$	25,692
Securities		6,831		7,087		7,442		7,887		8,296
Federal funds sold		24		183		334		14		80
Deposits in other banks		11		10		7		11		119
Total interest income		52,807		49,195		45,146		39,167		34,187
Interest expense
Deposits		19,307		16,991		13,658		10,446		8,933
Federal funds purchased		2,195		1,159		989		1,374		861
Repurchase agreements		1,202		1,727		2,706		2,151		2,394
Other borrowings		554		68		451		354		4
Long-term debt		828		789		384		358		327
Total interest expense		24,086		20,734		18,188		14,683		12,519
Net interest income		28,721		28,461		26,958		24,484		21,668
Provision for loan losses		—		—		—		—		—
Net interest income after provision for loan losses		28,721		28,461		26,958		24,484		21,668
Non-interest income
Service charges on deposit accounts		856		833		816		793		781
Trust fee income		843		760		778		615		586
Bank owned life insurance (BOLI) income		286		290		267		291		288
Brokered loan fees		369		178		962		400		219
Gain on sale of mortgage loans		1,623		2,118		2,198		1,911		1,765
Insurance commissions		723		648		114		172		113
Other		1,372		1,159		655		512		427
Total non-interest income		6,072		5,986		5,790		4,694		4,179
Non-interest expense
Salaries and employee benefits		15,452		13,874		13,465		11,858		11,529
Net occupancy expense		2,752		2,025		1,937		1,875		1,683
Marketing		799		894		821		922		699
Legal and professional		1,468		1,783		1,183		1,103		1,097
Communications and data processing		684		673		658		914		655
Franchise taxes		61		134		49		45		45
Other		3,497		3,353		3,136		2,473		2,146
Total non-interest expense		24,713		22,736		21,249		19,190		17,854
Income before income taxes		10,080		11,711		11,499		9,988		7,993
Income tax expense		3,437		3,966		3,915		3,401		2,717
Net income	$	6,643	$	7,745	$	7,584	$	6,587	$	5,276

8

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

	1st Quarter 2006							4th Quarter 2005							3rd Quarter 2005							2nd Quarter 2005							1st Quarter 2005
	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	$	567,653	$	6,396		4.57	%	$	598,280	$	6,653		4.41	%	$	643,319	$	7,007		4.32	%	$	685,058	$	7,451		4.36	%	$	729,907	$	7,861		4.37	%
Securities — Non-taxable		48,635		669		5.58	%		48,655		668		5.45	%		48,675		669		5.45	%		48,694		671		5.53	%		48,715		669		5.57	%
Federal funds sold		2,233		24		4.36	%		18,553		183		3.91	%		37,532		334		3.53	%		1,980		14		2.84	%		12,377		80		2.62	%
Deposits in other banks		1,079		11		4.13	%		980		10		4.05	%		895		7		3.10	%		1,736		11		2.54	%		17,858		119		2.70	%
Loans held for sale (3)		102,030		3,295		13.10	%		99,882		3,521		13.99	%		121,181		3,650		11.95	%		84,497		2,897		13.75	%		81,956		2,281		11.29	%
Loans held for investment		2,168,410		42,646		7.98	%		2,006,132		38,394		7.59	%		1,884,161		33,713		7.10	%		1,755,311		28,358		6.48	%		1,590,207		23,411		5.97	%
Less reserve for loan losses		18,898		—		—			18,924		—		—			18,882		—		—			18,753		—		—			18,930		—		—
Loans, net of reserve		2,251,542		45,941		8.28	%		2,087,090		41,915		7.97	%		1,986,460		37,363		7.46	%		1,821,055		31,255		6.88	%		1,653,233		25,692		6.30	%
Total earning assets		2,871,142		53,041		7.49	%		2,753,558		49,429		7.12	%		2,716,881		45,380		6.63	%		2,558,523		39,402		6.18	%		2,462,090		34,421		5.67	%
Cash and other assets		205,999							188,998							175,986							162,835							148,557
Total assets	$	3,077,141						$	2,942,556						$	2,892,867						$	2,721,358						$	2,610,647
Liabilities and Stockholders’ Equity
Transaction deposits	$	117,685	$	312		1.08	%	$	108,245	$	282		1.03	%	$	107,398	$	271		1.00	%	$	111,029	$	272		0.98	%	$	107,162	$	255		0.97	%
Savings deposits		671,102		6,195		3.74	%		691,575		5,800		3.33	%		628,019		4,442		2.81	%		654,519		3,906		2.39	%		613,391		3,147		2.08	%
Time deposits		635,250		6,664		4.25	%		564,405		5,561		3.91	%		614,433		5,548		3.58	%		482,249		3,958		3.29	%		520,083		3,947		3.08	%
Deposits in foreign branches		541,084		6,136		4.60	%		518,316		5,348		4.09	%		373,298		3,397		3.61	%		300,394		2,310		3.08	%		245,414		1,584		2.62	%
Total interest bearing deposits		1,965,121		19,307		3.98	%		1,882,541		16,991		3.58	%		1,723,148		13,658		3.14	%		1,548,191		10,446		2.71	%		1,486,050		8,933		2.44	%
Other borrowings		380,832		3,951		4.21	%		325,350		2,954		3.60	%		504,700		4,146		3.26	%		545,896		3,879		2.85	%		534,773		3,259		2.47	%
Long-term debt		46,394		828		7.24	%		44,722		789		7.00	%		20,620		384		7.39	%		20,620		358		6.96	%		20,620		327		6.43	%
Total interest bearing liabilities		2,392,347		24,086		4.08	%		2,252,613		20,734		3.65	%		2,248,468		18,188		3.21	%		2,114,707		14,683		2.78	%		2,041,443		12,519		2.49	%
Demand deposits		445,012							458,743							420,288							397,266							363,398
Other liabilities		19,309							19,702							15,265							8,370							9,241
Stockholders’ equity		220,473							211,498							208,846							201,015							196,565
Total liabilities and stockholders’ equity	$	3,077,141						$	2,942,556						$	2,892,867						$	2,721,358						$	2,610,647
Net interest income			$	28,955						$	28,695						$	27,192						$	24,719						$	21,902
Net interest margin						4.09	%						4.13	%						3.97	%						3.88	%						3.61	%

(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.
(3)	Revenue includes origination fees and other loan fees for our residential mortgage loans that are earned when the loan is sold. This increases our overall yield on these loans since most of the mortgage loans are on our books for less than 30 days.

9

EX-99.2

EXHIBIT 99.2

Texas Capital Bancshares, Inc. Earnings Release April 19, 2006

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, 2005, and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

OPENING COMMENTS Financial highlights Net income for Q1-2006 of $6.6 million EPS for Q1-2006 of $0.25 Growth of 37% in total loans and 24% in total deposits over Q1-2005 Results for Q1 validate business strategy Results consistent with guidance for full year Pace of growth in business remains very strong with exceptionally strong loan growth Results reflect continued investment and expansion of lines of business TexCap Insurance - first full quarter impact of major investment made in Q4 Houston - addition of private client group Lender Finance - first full quarter following expansion Measurable improvement in market share All lines of business well positioned for continued expansion New and rapidly growing businesses clearly demonstrating potential for growth and profitability

Net income for Q1-2006 at $6.6 million Growth of 26% EPS growth of 25% to $0.25 Growth in loans* Held for investment - 36% growth over Q1-2005; increase of 8% on linked-quarter basis Total loans - 36% growth over Q1-2005; increase of 8% on linked-quarter basis Growth in deposits* Demand deposits - 22% growth over Q1-2005; decrease of 3% on linked-quarter basis Total deposits - 30% growth over Q1-2005; increase of 3% on linked-quarter basis Increase of net interest margin to 4.09% Increase of 48 bp over Q1-2005 and decrease of 4 bp from Q4-2005 Improved earning asset mix - declining security position Rapid loan growth and seasonal reduction in demand deposits limited margin expansion Historically, demand deposits follow loan growth * Average balances PERFORMANCE SUMMARY

FINANCIAL REVIEW

INCOME STATEMENT In Thousands Q1-06 Q4-05 Q3-05 Q2-05 Q1-05 Net interest income $ 28,721 $ 28,461 $ 26,958 $ 24,484 $ 21,668 Provision for loan losses - - - - - Net interest income after provision for loan losses 28,721 28,461 26,958 24,484 21,668 Non-interest income 6,072 5,986 5,790 4,694 4,179 Non-interest expense 24,713 22,736 21,249 19,190 17,854 Income before income taxes 10,080 11,711 11,499 9,988 7,993 Income tax expense 3,437 3,966 3,915 3,401 2,717 Net income $ 6,643 $ 7,745 $ 7,584 $ 6,587 $ 5,276 Diluted EPS $ .25 $ .29 $ .28 $ .25 $ .20 Key Ratios Net interest margin 4.09% 4.13% 3.97% 3.88% 3.61% EA/TA 93.4% 93.6% 93.9% 94.0% 94.3% ROA 0.88% 1.04% 1.04% 0.97% 0.82% Leverage 14.0x 13.9x 13.5x 13.5x 13.3x ROE 12.2% 14.5% 14.4% 13.1% 10.9% Efficiency 71.0% 66.0% 64.9% 65.8% 69.1%

ITEMS IMPACTING Q1-2006 In Thousands Q4-2005 to Q1-2006 comparison All are in the normal course of business, but can significantly affect quarter-to-quarter comparisons. Impact from the items listed below on: EPS - $0.047 ROE - 14.5% vs. 12.2% ROA - 1.04% vs. 0.88% Efficiency - 66.2% vs. 71.0% Pretax Increase from Q4-2005 FICA and other employment taxes* $ 691 Difference in days* 638 FAS 123R 426 Restricted stock vesting 128 Total $ 1,883 * Always affect Q1 as compared to Q4.

NET INTEREST & MARGIN Impact of exceptional loan growth - positive on net income; slight decline in NIM Total loan growth of 8% from Q4-2005 and 36% from Q1-2005 Improved earning asset composition with loans at 78% versus 76% in Q4-2005 and 67% in Q1-2005, reaching 80% at quarter-end Funded with increase in interest-bearing liabilities and reduction in liquidity assets and securities Seasonal weakness in deposits following very strong growth in Q4-2005 Expansion of operating leases - fixed rate financing, not included in earning assets Selective increase in fixed rate loans Small compression in yields vs. funding costs on both fixed rate loans and securities Result: Decline (4 bps) in linked-quarter NIM - insignificant consequence of rapid growth with no adverse impact on income NET INTEREST MARGIN

FINANCIAL SUMMARY In Thousands Period End Period End Period End Q1 2006 Q4 2005 Q1 2005 Q1/Q4 % Change YOY % Change Loans held for investment $2,263,007 $2,075,961 $1,676,799 9% 35% Loans held for sale 130,285 111,178 70,672 17% 84% Total loans 2,393,292 2,187,139 1,747,471 9% 37% Securities 604,987 630,482 754,154 (4)% (20)% Demand deposits 481,410 512,294 405,162 (6)% 19% Total Deposits 2,463,719 2,495,179 1,981,701 (1)% 24% Total Assets 3,192,932 3,042,225 2,636,920 5% 21% Quarterly net income 6,643 7,745 5,276 (14)% 26% Quarterly diluted EPS .25 .29 .20 (14)% 25%

FINANCIAL SUMMARY In Thousands Averages Averages Averages Averages Q1 2006 Q4 2005 Q4 2005 Q1 2005 Q1/Q4 % Change YOY % Change Loans held for investment $2,168,410 $2,168,410 $2,006,132 $1,590,207 8% 36% Loans held for sale 102,030 102,030 99,882 81,956 2% 24% Total loans 2,270,440 2,270,440 2,106,014 1,672,163 8% 36% Securities 616,288 616,288 646,935 778,622 (5)% (21)% Demand deposits 445,012 445,012 458,743 363,398 (3)% 22% Total Deposits 2,410,133 2,410,133 2,341,284 1,849,448 3% 30% Total Assets 3,077,141 3,077,141 2,942,556 2,610,647 5% 18%

QTD AVERAGE BALANCES, YIELDS, AND RATES In Thousands Q1 2006 Q1 2006 Q4 2005 Q4 2005 Q1 2005 Q1 2005 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 616,288 4.65% $ 646,935 4.49% $ 778,622 4.44% Fed funds sold & liquidity investments 3,312 4.29% 19,533 3.92% 30,235 2.67% Loans held for sale 102,030 13.10% 99,882 13.99% 81,956 11.29% Loans held for investment 2,168,410 7.98% 2,006,132 7.59% 1,590,207 5.97% Total loans, net of reserve 2,251,542 8.28% 2,087,090 7.97% 1,653,233 6.30% Total earning assets 2,871,142 7.49% 2,753,558 7.12% 2,462,090 5.67% Total assets $3,077,141 $2,942,556 $2,610,647 Liabilities and Stockholders' Equity Total interest bearing deposits $1,965,121 3.98% $1,882,541 3.58% $1,486,050 2.44% Other borrowings 380,832 4.21% 325,350 3.60% 534,773 2.47% Long-term debt 46,394 7.24% 44,722 7.00% 20,620 6.43% Total interest bearing liabilities 2,392,347 4.08% 2,252,613 3.65% 2,041,443 2.49% Demand deposits 445,012 458,743 363,398 Stockholders' equity 220,473 211,498 196,565 Total liabilities and stockholders' equity $3,077,141 3.17% $2,942,556 2.80% $2,610,647 1.94% Net interest margin 4.09% 4.13% 3.61%

Assets Liabilities 0.66 0.46 0.2 0.14 0.08 0.07 0.06 0.33 Asset Sensitive Differential: Approx. $665 million INTEREST SENSITIVITY POSITION 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 Assets Liabilities Data : 1st Qtr Average Balance Sheet

DEPOSIT AND LOAN GROWTH Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. Demand Deposit CAGR: 27% Total Deposit CAGR: 27% Loans Held for Investment CAGR: 26% 2001 2002 2003 2004 2005 Q1-2006 Loans Held for Investment 855 1003 1230 1565 2076 2263 2001 2002 2003 2004 2005 Q1-2006 Demand Deposits 136 239 302 398 512 481 Interest Bearing Deposits 750 858 1103 1392 1983 1983 2001 2002 2003 2004 2005 ($ in millions) Q1-2006 886 1,197 1,445 1,790 2,495 2,464

REVENUE AND EXPENSE GROWTH Operating Revenue CAGR: 33% Net Interest Income CAGR: 32% Non-interest Income CAGR: 39% Non-interest Expense CAGR: 33% Net Interest Income Non-interest Income Non-interest Expense 2001 2002 2003 2004 2005 Q1-2006 Non Interest Expense 29432 35370 48430 57340 81030 98852 2001 2002 2003 2004 2005 Q1-2006 Net Interest Income 35055 42246 53155 74742 101571 114884 Non Interest Income 5983 8625 10892 13632 20649 24288 2001 2002 2003 2004 2005 ($ in thousands) 2006* 41,038 50,871 64,047 88,374 122,220 139,172 * 2006 annualized through 3/31/2006.

CREDIT QUALITY Credit quality remains strong Net recoveries of $12,000 in Q1-2006 Net recovery for trailing 12 months Total NCO's for last 2 years now only $40,000 Losses since inception < 10 bps Reserve position remains high as multiple of historical NCO's and NPL's Non-accrual loans remain very low at 27 bps

CREDIT QUALITY Allowance / Loans .84% .91% 1.20% 1.44% 1.45% NPL to Loans .39% .41% .39% .83% .29% Allowance to NPL 2.1x 2.2x 3.1x 1.7x 5.0x Allowance to non-accruals 3.1x 3.3x 3.2x 1.7x 5.2x Non-accrual loans to loans ..27% ..27% ..37% ..83% ..28% Net Charge-offs / Average Loans Q1-2006 2005 2004 2003 2002

EARNINGS GUIDANCE Confirming Earnings Guidance for 2006 Q1 results consistent with 2006 net income range of $32 million to $35 million (before 123R equity-linked compensation expense) Range as adjusted for 123R is $30.5 million to $33 million Assumptions Improvement in ROA and ROE Superior growth in loans and deposits with increases > 20% Margin expansion - modest compared to 2005 Yield curve - continued reduction in securities with adverse effect on net interest margin Increased profit contribution from all lines of business Continued investment in businesses at strong pace

CLOSING COMMENTS Closing comments Strong quarter, strong year Economic outlook positive Confident of continued growth in 2006

Q & A