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 23, 2009 (April 22, 2009)

TEXAS CAPITAL BANCSHARES, INC.

(Name of Registrant)

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

2000 McKinney Avenue, Suite 700, 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 22, 2009, 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, 2009. 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 22, 2009, of Texas Capital Bancshares, Inc., announcing its operating and financial results for its fiscal quarter ended March 31, 2009
99.2	Presentation given April 22, 2009 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2009

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 23, 2009	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 22, 2009, of Texas Capital Bancshares, Inc., announcing its operating and financial results for its fiscal quarter ended March 31, 2009
99.2	Presentation given April 22, 2009 discussing Texas Capital Bancshares, Inc.’s operating and financial results for its fiscal quarter ended March 31, 2009

EX-99.1

Exhibit 99.1

For immediate release
April 22, 2009

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

TEXAS CAPITAL BANCSHARES ANNOUNCES OPERATING RESULTS FOR Q1 2009

DALLAS — April 22, 2009 — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced earnings and operating results for the first quarter of 2009.

• Loans held for investment were flat and total loans decreased 2% on a linked quarter basis and grew 15% and 19%, respectively, from Q1 2008

• Demand deposits grew 4% and total deposits declined 10% on a linked quarter basis and grew 21% and declined 5%, respectively, from Q1 2008

• Net income increased 76% on a linked quarter basis and decreased 24% from Q1 2008

• Net income available to common shareholders increased 49% on a linked quarter basis and decreased 35% from Q1 2008

• EPS increased 55% on a linked quarter basis and decreased 43% from Q1 2008

“We are pleased with the results for this quarter, especially in light of the challenging economic environment,” said George Jones, CEO. “We are taking advantage of some unique opportunities presented by these circumstances. We are glad we are in Texas, as economists believe Texas will emerge from this downturn faster and better positioned than the rest of the country.”

FINANCIAL SUMMARY

(dollars and shares in thousands)

	Q1 2009			Q1 2008			% Change
QUARTERLY OPERATING RESULTS
Net Income(1)	$	6,125		$	8,030			(24	%)
Net Income Available to Common Shareholders(1)	$	5,195		$	8,030			(35	%)
Diluted EPS(1)	$	.17		$	.30			(43	%)
ROA(1)		.48	%		.76	%
ROE(1)		5.44	%		10.64	%
Diluted Shares		31,072			26,528
	2009			2008			% Change
BALANCE SHEET
Total Assets(1)	$	5,009,931		$	4,351,514			15	%
Demand Deposits		608,939			503,554			21	%
Total Deposits		3,010,960			3,155,313			(5	)%
Loans Held for Investment		4,019,247			3,493,631			15	%
Total Loans(1)		4,446,229			3,733,491			19	%
Stockholders’ Equity		471,990			312,016			51	%

(1) From continuing operations

1

DETAILED FINANCIALS

Texas Capital Bancshares, Inc. reported net income available to common shareholders from continuing operations of $5.2 million for the quarter ended March 31, 2009 compared to $8.0 million for the first quarter of 2008. On a fully diluted basis, earnings per common share from continuing operations were $.17 for the three months ended March 31, 2009, compared to $.30 for the same quarter last year. The effect of the TARP preferred stock dividends net of income earned on the TARP proceeds reduced earnings per share by $.03 for the three months ended March 31, 2009. Shares for the first quarter of 2009 were affected by the issuance of 4 million shares in September 2008. Results of discontinued operations were net losses of $95,000 and $148,000 for the first quarter 2009 and 2008, respectively. The discussion below relates only to continuing operations.

Return on average equity was 5.44 percent and return on average assets was .48 percent for the first quarter of 2009, compared to 10.64 percent and .76 percent, respectively for the first quarter of 2008. The reduction in the ROE resulted primarily from the 51 percent increase in stockholders’ equity since March 31, 2008.

Net interest income was $41.2 million for the first quarter of 2009, compared to $36.6 million for the first quarter of 2008. The increase was due to an increase in average earning assets of $900.5 million over levels reported in the first quarter of 2008. The increase in average earning assets included a $538.3 million increase in average loans held for investment and an increase of $415.7 million in average loans held for sale, offset by a decrease of $60.5 million in average securities. The net interest margin in the first quarter of 2009 was 3.39 percent, a 26 basis point decrease from the first quarter of 2008 and a 2 basis point decrease from the fourth quarter of 2008 due to asset sensitivity, funding costs associated with growth and the impact of the increase in non-accrual loans.

Average total deposits increased by $182.4 million from the first quarter of 2008 and decreased by $125.7 million from the fourth quarter of 2008. For the same periods, the average balance of demand deposits increased by $167.4 million or 36 percent to $636.7 million from $469.3 million during the first quarter of 2008 and increased $70.2 million, or 12 percent, from the fourth quarter of 2008.

As a result of the overall economic downturn, we have experienced increases in levels of non-performing assets. In the first quarter of 2009, net charge-offs were $2.6 million, compared to net charge-offs of $2.6 million in the first quarter of 2008 and net charge-offs of $5.2 million in the fourth quarter of 2008. Non-accrual loans were $50.7 million or 1.26 percent of loans at the end of the first quarter of 2009, compared to $13.6 million, or .39 percent of loans at the end of the first quarter of 2008, and $47.5 million, or 1.18 percent of loans at the end of the fourth quarter of 2008. Loans 90 days past due and still accruing were $4.6 million at the end of the first quarter of 2009 compared to $5.2 million at the end of the first quarter of 2008, and $4.1 million at the end of the fourth quarter of 2008. At March 31, 2009, the $4.6 million of past due loans included $1.7 million in premium finance loans. At March 31, 2009, total other real estate owned was $27.5 million compared to $3.1 million at the end of the first quarter of 2008, and $25.9 million at the end of the fourth quarter of 2008. The Company recorded an $8.5 million provision for loan losses in the first quarter of 2009, compared to $3.8 million in the first quarter of 2008 and $11.0 million in the fourth quarter of 2008. The first quarter provision resulted in an increase in the reserve to 1.31 percent of loans held for investment as compared to .97 percent at March 31, 2008, and 1.16 percent at the end of the fourth quarter of 2008. In management’s opinion, the reserve is adequate 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 2009 increased $1.2 million, or 21 percent, to $6.9 million from $5.7 million in the first quarter of 2008. The increase is primarily related to a $1.4 million increase in brokered loan fees, a $408,000 increase in service charge income, and offset by a $332,000 decrease in trust fee income.

2

Non-interest expense for the first quarter of 2009 increased $4.0 million, or 15 percent, to $30.3 million from $26.3 million in the first quarter of 2008. The increase is primarily related to an $877,000 increase in salaries and employee benefits to $16.2 million from $15.3 million, which was primarily due to general business growth. Additionally, other non-interest expense increased $2.7 million to $6.7 million and included an increase in OREO-related expenses of approximately $1.1 million and an increase in FDIC assessment expense of $1.2 million.

Stockholders equity increased by 51 percent from $312.0 million in March 2008 to $472.0 million at the end of the first quarter of 2009. Contributing to the increase was retained net income of $23.0 million and proceeds of sales of common and preferred stock totaling $130.0 million. In September 2008, we raised $55.0 million in common equity from institutional investors. On January 16, 2009, we completed the issuance of $75.0 million of perpetual preferred stock and related warrants under the U.S. Department of Treasury’s voluntary Capital Purchase Program (“the Program”). In November 2008, we applied for up to $130.0 million of additional capital under the Program. After receiving approval for the $130.0 million, we determined that we would accept $75.0 million under the Program, strengthening our position in a difficult economic environment. We were well capitalized under regulatory guidelines prior to the capital additions, but the $130 million from the two transactions strengthened our already well-capitalized position. At March 31, 2009, our ratio of tangible common equity to total tangible assets was 7.8%.

On April 15, 2009, we filed a universal shelf registration on Form S-3 which allows us to issue from time to time up to $150 million of various debt and equity securities such as senior debt securities, subordinated debt securities, convertible debt, preferred stock, common stock, warrants, and units.

ABOUT TEXAS CAPITAL BANCSHARES, INC.

Texas Capital Bancshares, Inc. (NASDAQ: TCBI) is the parent company of Texas Capital Bank, a commercial bank that delivers highly personalized financial services to businesses and private clients. Headquartered in Dallas, the Bank has full-service locations in Austin, Dallas, Fort Worth, Houston and San Antonio.

This release contains forward-looking statements, which are subject to risks and uncertainties. A number of factors, many of which are beyond Texas Capital Bancshares’ control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties include the risk of adverse impacts from general economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Form 10-K and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

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
	2009			2008			2008			2008			2008
CONSOLIDATED STATEMENT OF INCOME
Interest income	$	55,806		$	58,873		$	62,240		$	61,008		$	66,809
Interest expense		14,589			20,161			23,974			22,848			30,210
Net interest income		41,217			38,712			38,266			38,160			36,599
Provision for loan losses		8,500			11,000			4,000			8,000			3,750
Net interest income after provision for loan losses		32,717			27,712			34,266			30,160			32,849
Non-interest income		6,900			5,950			4,885			5,952			5,683
Non-interest expense		30,306			28,443			27,675			27,256			26,277
Income from continuing operations before income taxes		9,311			5,219			11,476			8,856			12,255
Income tax expense		3,186			1,732			3,911			3,056			4,225
Income from continuing operations		6,125			3,487			7,565			5,800			8,030
Loss from discontinued operations (after-tax)		(95	)		(100	)		(252	)		(116	)		(148	)
Net income		6,030			3,387			7,313			5,684			7,882
Preferred stock dividends		930			—			—			—			—
Net income available to common shareholders	$	5,100		$	3,387		$	7,313		$	5,684		$	7,882
Diluted EPS from continuing operations	$	.17		$	.11		$	.27		$	.22		$	.30
Diluted EPS	$	.16		$	.11		$	.26		$	.21		$	.30
Diluted shares		31,072,444			31,037,610			27,792,938			26,805,358			26,527,904
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	5,009,931		$	5,139,564		$	4,742,043		$	4,662,507		$	4,351,514
Loans held for investment		4,019,247			4,027,871			3,840,172			3,704,262			3,493,631
Loans held for sale		426,982			496,351			343,002			328,838			239,860
Securities		361,898			378,752			365,145			390,223			425,513
Demand deposits		608,939			587,161			561,227			610,629			503,554
Total deposits		3,010,960			3,333,187			3,388,963			3,593,077			3,155,313
Other borrowings		1,386,783			1,280,607			835,025			621,127			751,482
Long-term debt		113,406			113,406			113,406			113,406			113,406
Stockholders’ equity		471,990			387,073			380,858			314,917			312,016
End of period shares		31,014,575			30,971,189			30,844,202			26,780,386			26,631,763
Book value (excluding securities gains/losses)	$	12.64		$	12.44		$	12.33		$	11.80		$	11.55
Tangible book value (excluding securities gains/losses)	$	12.39		$	12.19		$	12.08		$	11.51		$	11.26
SELECTED FINANCIAL RATIOS
From continuing operations
Net interest margin		3.39	%		3.41	%		3.47	%		3.65	%		3.65	%
Return on average assets		.48	%		.29	%		.65	%		.53	%		.76	%
Return on average equity		5.44	%		3.61	%		9.12	%		7.40	%		10.64	%
Non-interest income to earning assets		.56	%		.52	%		.44	%		.57	%		.56	%
Efficiency ratio		63.0	%		63.7	%		64.1	%		61.8	%		62.1	%
Non-interest expense to earning assets		2.48	%		2.49	%		2.49	%		2.59	%		2.61	%
From consolidated
Net interest margin		3.39	%		3.41	%		3.47	%		3.65	%		3.65	%
Return on average assets		.47	%		.28	%		.63	%		.52	%		.74	%
Return on average equity		5.36	%		3.50	%		8.81	%		7.25	%		10.45	%
Tier 1 capital ratio		11.9	%		10.0	%		10.5	%		9.3	%		9.7	%
Total capital ratio		13.0	%		10.9	%		11.4	%		10.3	%		10.8	%
Tier 1 leverage ratio		11.0	%		10.2	%		10.5	%		9.3	%		9.4	%

4

TEXAS CAPITAL BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

	March 31,			March 31,			%
	2009			2008			Change
Assets
Cash and due from banks	$	60,631		$	78,975			(23	)%
Federal funds sold		10,000			—			100	%
Securities, available-for-sale		361,898			425,513			(15	)%
Loans held for sale		426,982			239,860			78	%
Loans held for sale from discontinued operations		591			730			(19	)%
Loans held for investment (net of unearned income)		4,019,247			3,493,631			15	%
Less: Allowance for loan losses		52,727			34,021			55	%
Loans held for investment, net		3,966,520			3,459,610			15	%
Premises and equipment, net		8,457			6,092			39	%
Accrued interest receivable and other assets		167,795			133,654			26	%
Goodwill and intangibles, net		7,648			7,810			(2	)%
Total assets	$	5,010,522		$	4,352,244			15	%
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest bearing	$	608,939		$	503,554			21	%
Interest bearing		1,984,946			1,718,339			16	%
Interest bearing in foreign branches		417,075			933,420			(55	)%
Total deposits		3,010,960			3,155,313			(5	)%
Accrued interest payable		5,181			5,742			(10	)%
Other liabilities		22,202			14,285			55	%
Federal funds purchased		514,270			312,212			65	%
Repurchase agreements		62,892			8,964			602	%
Other short-term borrowings		809,621			430,306			88	%
Trust preferred subordinated debentures		113,406			113,406			—
Total liabilities		4,538,532			4,040,228			12	%
Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value
Authorized shares — 10,000,000
Issued shares — 75,000 at March 31, 2009		70,984			—			100	%
Common stock, $.01 par value:
Authorized shares — 100,000,000
Issued shares — 31,014,575 and 26,631,763 at March 31, 2009 and March 31, 2008, respectively		310			266			17	%
Additional paid-in capital		260,647			193,917			34	%
Retained earnings		134,951			113,467			19	%
Treasury stock (shares at cost: 417 at March 31, 2009 and 84,691 at March 31, 2008)		(8	)		(581	)		(99	)%
Deferred compensation		—			573			(100	)%
Accumulated other comprehensive income, net of taxes		5,106			4,374			17	%
Total stockholders’ equity		471,990			312,016			51	%
Total liabilities and stockholders’ equity	$	5,010,522		$	4,352,244			15	%

5

TEXAS CAPITAL BANCSHARES, INC.

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

	Three Months Ended
	March 31
	2009			2008
Interest income
Interest and fees on loans	$	51,912		$	61,897
Securities		3,851			4,860
Federal funds sold		15			40
Deposits in other banks		28			12
Total interest income		55,806			66,809
Interest expense
Deposits		11,579			21,724
Federal funds purchased		618			2,950
Repurchase agreements		14			322
Other borrowings		1,178			3,327
Trust preferred subordinated debentures		1,200			1,887
Total interest expense		14,589			30,210
Net interest income		41,217			36,599
Provision for loan losses		8,500			3,750
Net interest income after provision for loan losses		32,717			32,849
Non-interest income
Service charges on deposit accounts		1,525			1,117
Trust fee income		884			1,216
Bank owned life insurance (BOLI) income		274			311
Brokered loan fees		1,906			473
Equipment rental income		1,456			1,516
Other		855			1,050
Total non-interest income		6,900			5,683
Non-interest expense
Salaries and employee benefits		16,219			15,342
Net occupancy expense		2,754			2,365
Leased equipment depreciation		1,123			1,193
Marketing		555			677
Legal and professional		2,071			1,826
Communications and data processing		836			854
Other		6,748			4,020
Total non-interest expense		30,306			26,277
Income from continuing operations before income taxes		9,311			12,255
Income tax expense		3,186			4,225
Income from continuing operations		6,125			8,030
Loss from discontinued operations (after-tax)		(95	)		(148	)
Net income		6,030			7,882
Preferred stock dividends		930			—
Net income available to common stockholders	$	5,100		$	7,882
Basic earnings per common share:
Income from continuing operations	$	.17		$	.30
Net income	$	.16		$	.30
Diluted earnings per common share:
Income from continuing operations	$	.17		$	.30
Net income	$	.16		$	.30

6

TEXAS CAPITAL BANCSHARES, INC.

SUMMARY OF LOAN LOSS EXPERIENCE
(Dollars in thousands)

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2009			2008			2008			2008			2008
Beginning balance	$	46,835		$	40,998		$	38,460		$	34,021		$	32,821
Loans charged-off:
Commercial		1,695			535			592			3,165			3,086
Real estate — construction		60			1,195			553			118			—
Real estate — term		236			3,432			267			464			5
Consumer		419			64			129			—			—
Leases		226			—			—			—			29
Total		2,636			5,226			1,541			3,747			3,120
Recoveries:
Commercial		21			43			27			165			524
Consumer		—			—			13			—			—
Leases		7			—			12			21			46
Real estate — term		—			20			27			—			—
Total recoveries		28			63			79			186			570
Net charge-offs		2,608			5,163			1,462			3,561			2,550
Provision for loan losses		8,500			11,000			4,000			8,000			3,750
Ending balance	$	52,727		$	46,835		$	40,998		$	38,460		$	34,021
Reserve to loans held for investment (2)		1.31	%		1.16	%		1.07	%		1.04	%		.97	%
Reserve to average loans held for investment (2)		1.31	%		1.21	%		1.08	%		1.07	%		.98	%
Net charge-offs to average loans (1) (2)		.26	%		.53	%		.15	%		.40	%		.29	%
Net charge-offs to average loans for last twelve months(1) (2)		.34	%		.35	%		.28	%		.25	%		.16	%
Provision for loan losses to average loans (1) (2)		.85	%		1.13	%		.42	%		.89	%		.43	%
Non-performing loans:
Loans past due 90 days and still accruing (3) (4)	$	4,637		$	4,115		$	2,970		$	22,763		$	5,199
Non-accrual (4)		50,683			47,499			46,579			16,753			13,564
Total	$	55,320		$	51,614		$	49,549		$	39,516		$	18,763
Other real estate owned	$	27,501		$	25,904		$	5,792		$	5,615		$	3,126
Reserve to non-performing loans		1.0x			.9x			.8x			1.0x			1.8x
Reserve to non-accrual loans		1.0x			1.0x			.9x			2.3x			2.5x
Reserve to non-performing assets		.6x			.6x			.7x			.9x			1.6x
Non-accrual loans to loans (2)		1.26	%		1.18	%		1.21	%		.45	%		.39	%
Loans past due 90 days to loans (2)		.12	%		.10	%		.08	%		.61	%		.15	%
Non-performing loans to loans (2)		1.38	%		1.28	%		1.29	%		1.07	%		.54	%

(1)	Interim period ratios are annualized.
(2)	Excludes loans held for sale.
(3)	At March 31, 2009, loans past due 90 days and still accruing includes premium finance loans of $1.7 million. These loans are primarily secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
(4)	At March 31, 2009, non-performing assets include $4.0 million of mortgage warehouse loans which were transferred to the loans held for investment portfolio at lower of cost or market, and some were subsequently moved to other real estate owned.

7

TEXAS CAPITAL BANCSHARES, INC.

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

	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
	2009			2008			2008			2008			2008
Interest income
Interest and fees on loans	$	51,912		$	54,814		$	57,909		$	56,389		$	61,897
Securities		3,851			4,031			4,281			4,550			4,860
Federal funds sold		15			27			40			61			40
Deposits in other banks		28			1			10			8			12
Total interest income		55,806			58,873			62,240			61,008			66,809
Interest expense
Deposits		11,579			16,075			18,338			16,715			21,724
Federal funds purchased		618			1,046			2,273			1,963			2,950
Repurchase agreements		14			79			86			54			322
Other borrowings		1,178			1,353			1,791			2,652			3,327
Trust preferred subordinated debentures		1,200			1,608			1,486			1,464			1,887
Total interest expense		14,589			20,161			23,974			22,848			30,210
Net interest income		41,217			38,712			38,266			38,160			36,599
Provision for loan losses		8,500			11,000			4,000			8,000			3,750
Net interest income after provision for loan losses		32,717			27,712			34,266			30,160			32,849
Non-interest income
Service charges on deposit accounts		1,525			1,133			1,161			1,288			1,117
Trust fee income		884			1,036			1,234			1,206			1,216
Bank owned life insurance (BOLI) income		274			315			299			315			311
Brokered loan fees		1,906			1,074			1,024			671			473
Equipment rental income		1,456			1,482			1,487			1,510			1,516
Other		855			910			(320	)		962			1,050
Total non-interest income		6,900			5,950			4,885			5,952			5,683
Non-interest expense
Salaries and employee benefits		16,219			14,688			16,039			15,369			15,342
Net occupancy expense		2,754			2,534			2,300			2,432			2,365
Leased equipment depreciation		1,123			1,142			1,153			1,179			1,193
Marketing		555			882			521			649			677
Legal and professional		2,071			2,793			2,358			2,645			1,826
Communications and data processing		836			832			858			770			854
Other		6,748			5,572			4,446			4,212			4,020
Total non-interest expense		30,306			28,443			27,675			27,256			26,277
Income from continuing operations before income taxes		9,311			5,219			11,476			8,856			12,255
Income tax expense		3,186			1,732			3,911			3,056			4,225
Income from continuing operations		6,125			3,487			7,565			5,800			8,030
Loss from discontinued operations (after-tax)		(95	)		(100	)		(252	)		(116	)		(148	)
Net income		6,030			3,387			7,313			5,684			7,882
Preferred stock dividends		930			—			—			—			—
Net income available to common stockholders	$	5,100		$	3,387		$	7,313		$	5,684		$	7,882

8

TEXAS CAPITAL BANCSHARES, INC.

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

	1st Quarter 2009							4th Quarter 2008							3rd Quarter 2008							2nd Quarter 2008							1st Quarter 2008
	Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/			Average		Revenue/		Yield/
	Balance		Expense (1)		Rate			Balance		Expense (1)		Rate			Balance		Expense (1)		Rate			Balance		Expense (1)		Rate			Balance		Expense (1)		Rate
Assets
Securities — Taxable	$	321,802	$	3,431		4.32	%	$	313,992	$	3,610		4.57	%	$	325,317	$	3,852		4.71	%	$	356,445	$	4,114		4.64	%	$	380,257	$	4,424		4.68	%
Securities — Non-taxable(2)		46,055		646		5.69	%		46,272		648		5.57	%		47,271		660		5.55	%		48,129		671		5.61	%		48,144		671		5.61	%
Federal funds sold		14,923		15		0.41	%		23,050		27		0.47	%		8,001		40		1.99	%		11,127		61		2.20	%		4,714		40		3.41	%
Deposits in other banks		11,207		28		1.01	%		5,761		1		0.07	%		2,554		10		1.56	%		1,103		8		2.92	%		1,251		12		3.86	%
Loans held for sale		587,401		6,487		4.48	%		316,409		4,441		5.58	%		288,103		4,137		5.78	%		246,026		3,654		5.97	%		171,672		2,610		6.11	%
Loans held for investment		4,022,180		45,425		4.58	%		3,875,586		50,373		5.17	%		3,781,289		53,772		5.66	%		3,597,342		52,735		5.90	%		3,483,840		59,287		6.84	%
Less reserve for loan losses		46,686		—		—			38,145		—		—			38,180		—		—			33,181		—		—			33,519		—		—
Loans, net of reserve		4,562,895		51,912		4.61	%		4,153,850		54,814		5.25	%		4,031,212		57,909		5.71	%		3,810,187		56,389		5.95	%		3,621,993		61,897		6.87	%
Total earning assets		4,956,882		56,032		4.58	%		4,542,925		59,100		5.18	%		4,414,355		62,471		5.63	%		4,226,991		61,243		5.83	%		4,056,359		67,044		6.65	%
Cash and other assets		238,723							218,335							201,589							198,946							207,595
Total assets	$	5,195,605						$	4,761,260						$	4,615,944						$	4,425,937						$	4,263,954
Liabilities and Stockholders’ Equity
Transaction deposits	$	129,850	$	44		0.14	%	$	103,111	$	67		0.26	%	$	103,905	$	122		0.47	%	$	111,587	$	129		0.46	%	$	108,349	$	145		0.54	%
Savings deposits		745,355		1,420		0.77	%		729,337		2,350		1.28	%		778,956		3,371		1.72	%		840,933		3,563		1.70	%		790,185		5,118		2.61	%
Time deposits		1,277,824		8,066		2.56	%		1,405,426		10,603		3.00	%		1,275,798		10,524		3.28	%		930,698		8,345		3.61	%		727,494		7,875		4.35	%
Deposits in foreign branches		444,549		2,049		1.87	%		555,573		3,055		2.19	%		720,211		4,321		2.39	%		755,593		4,678		2.49	%		956,603		8,586		3.61	%
Total interest bearing deposits		2,597,578		11,579		1.81	%		2,793,447		16,075		2.29	%		2,878,870		18,338		2.53	%		2,638,811		16,715		2.55	%		2,582,631		21,724		3.38	%
Other borrowings		1,367,691		1,810		0.54	%		881,868		2,478		1.12	%		709,157		4,150		2.33	%		830,482		4,669		2.26	%		773,149		6,599		3.43	%
Trust preferred subordinated debentures		113,406		1,200		4.29	%		113,406		1,608		5.64	%		113,406		1,486		5.21	%		113,406		1,464		5.19	%		113,406		1,887		6.69	%
Total interest bearing liabilities		4,078,675		14,589		1.45	%		3,788,721		20,161		2.12	%		3,701,433		23,974		2.58	%		3,582,699		22,848		2.56	%		3,469,186		30,210		3.50	%
Demand deposits		636,704							566,513							567,914							513,327							469,299
Other liabilities		23,619							21,323							16,452							14,613							22,071
Stockholders’ equity		456,607							384,703							330,145							315,298							303,398
Total liabilities and stockholders’ equity	$	5,195,605						$	4,761,260						$	4,615,944						$	4,425,937						$	4,263,954
Net interest income			$	41,443						$	38,939						$	38,497						$	38,395						$	36,834
Net interest margin						3.39	%						3.41	%						3.47	%						3.65	%						3.65	%

(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

Earnings Release April 22, 2009

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, 2008, and other filings made by Texas Capital Bancshares with the Securities and Exchange Commission.

Opening Comments Strong capital position with tangible common equity to total tangible assets of 7.8% Business model intact and positioned for future opportunities Continued potential to extend our growth strategy in Texas market Continuing to maintain an intense focus on credit quality Provision for loan losses based on reserve methodology, which includes factors related to overall economic conditions

Financial Highlights Net income and EPS Net income available to common shareholders of $5.2 million for Q1-2009 increased 49% compared to Q4-2008; 35% decrease compared to Q1-2008 EPS of $.17 increased 55% compared to Q4-2008; 43% decrease compared to Q1-2008 Impact of preferred stock dividends in Q1-09 was $.03 and $.02 for shares added in Q3-08 Growth in loans Held for investment - 4% increase over Q4-2008; 16% increase compared to Q1-2008 Total loans - 10% increase over Q4-2008; 26% increase compared to Q1-2008 Growth in deposits Demand deposits - 12% increase compared to Q4-2008; 36% increase compared to Q1- 2008 Total deposits - decrease of 4% from Q4-2008; 6% increase compared to Q1-2008 Net interest margin at 3.39%, slight decrease from Q4-08 Significant reduction in costs of all major funding sources, especially borrowings Strong growth in average balances in Q1-2009 for both LHFI and LHFS Growth in DDA and equity growth reduced total cost of funding, but at lower earnings rate Comparisons based on average balances

Financial Review Improved operating leverage - the benefit of growth and improved operations Net revenue increase of 8% from Q4-2008; 14% increase from Q1-2008 Benefit reduced by reduction in NIM from 2008 levels Credit quality Provision of $8.5 million for quarter Continue to provide based on methodology and allows for factors related to economic conditions Increase in non-performing assets Non-accrual loans at 1.26% and non-accrual loans + ORE to loans + ORE at 1.93% Net charge-offs of $2.6 million, or 26 bps, in Q1-2009

Income Statement (in thousands) Q1-09 Q4-08 Q3-08 Q2-08 Q1-08 Net interest income $ 41,217 $ 38,712 $ 38,266 $ 38,160 $ 36,599 Provision for loan losses 8,500 11,000 4,000 8,000 3,750 Net interest income after provision for loan losses 32,717 27,712 34,266 30,160 32,849 Non-interest income 6,900 5,950 4,885 5,952 5,683 Non-interest expense 30,306 28,443 27,675 27,256 26,277 Income before income taxes 9,311 5,219 11,476 8,856 12,255 Income tax expense 3,186 1,732 3,911 3,056 4,225 Net income 6,125 3,487 7,565 5,800 8,030 Preferred stock dividends 930 ^ ^ ^ ^ Net income available to common shareholders $ 5,195 $ 3,487 $ 7,565 $ 5,800 $ 8,030 Diluted EPS $ .17 $ .11 $ .27 $ .22 $ .30 Net interest margin 3.39% 3.41% 3.47% 3.65% 3.65% ROA .48% .29% .65% .53% .76% ROE 5.44% 3.61% 9.12% 7.40% 10.64% Efficiency 63.0% 63.7% 64.1% 61.8% 62.1%

Financial Summary (in thousands) QTD Averages QTD Averages QTD Averages Q1 2009 Q4 2008 Q1 2008 Q1/Q4 % Change YOY % Change Loans held for investment $4,022,180 $3,875,586 $3,483,840 4% 15% Loans held for sale 587,401 316,409 171,672 86% 242% Total loans 4,609,581 4,191,995 3,655,512 10% 26% Securities 367,859 360,264 428,401 2% (14)% Demand deposits 636,704 566,513 469,299 12% 36% Total deposits 3,234,282 3,359,960 3,051,930 (4)% 6% Total assets 5,195,605 4,761,260 4,263,954 9% 22%

Financial Summary (in thousands) Period End Period End Period End Q1 2009 Q4 2008 Q1 2008 Q1/Q4 % Change YOY % Change Loans held for investment $4,019,247 $4,027,871 $3,493,631 0% 15% Loans held for sale 426,982 496,351 239,860 (14)% 78% Total loans 4,446,229 4,524,222 3,733,491 (2)% 19% Securities 361,898 378,752 425,513 (4)% (15)% Demand deposits 608,939 587,161 503,554 4% 21% Total deposits 3,010,960 3,333,187 3,155,313 (10)% (5)% Total assets 5,009,931 5,139,564 4,351,514 (3)% 15%

QTD Average Balances, Yields and Rates (in thousands) Q1 2009 Q1 2009 Q4 2008 Q4 2008 Q1 2008 Q1 2008 Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Avg. Bal. Yield / Rate Assets Securities $ 367,857 4.49% $ 360,264 4.70% $ 428,401 4.78% Fed funds sold & liquidity investments 26,130 .67% 28,811 .39% 5,965 3.51% Loans held for sale 587,401 4.48% 316,409 5.58% 171,672 6.11% Loans held for investment 4,022,180 4.58% 3,875,586 5.17% 3,483,840 6.84% Total loans, net of reserve 4,562,895 4.61% 4,153,850 5.25% 3,621,993 6.87% Total earning assets 4,956,882 4.58% 4,542,925 5.18% 4,056,359 6.65% Total assets $ 5,195,605 $ 4,761,260 $ 4,263,954 Liabilities and Stockholders' Equity Total interest bearing deposits $ 2,597,578 1.81% $ 2,793,447 2.29% $ 2,582,631 3.38% Other borrowings 1,367,691 .54% 881,868 1.12% 773,149 3.43% Long-term debt 113,406 4.29% 113,406 5.64% 113,406 6.69% Total interest bearing liabilities 4,078,675 1.45% 3,788,721 2.12% 3,469,186 3.50% Demand deposits 636,704 566,513 469,299 Stockholders' equity 456,607 384,703 303,398 Total liabilities and stockholders' equity $ 5,195,605 1.14% $ 4,761,260 1.68% $ 4,263,954 2.85% Net interest margin 3.39% 3.41% 3.65%

2004 2005 2006 2007 2008 Q1-2009 Non Interest Expense 50381 65344 86912 98606 109651 121224 2004 2005 2006 2007 2008 Q1-2009 Net Interest Income 71467 93624 117170 139752 151737 164868 Non Interest Income 10593 12507 17684 20627 22470 27600 Revenue and Expense Growth Net Interest Income Non-interest Income Non-interest Expense 2004 2005 2006 2007 2008 ($ in thousands) Q1-2009 82,060 106,131 134,854 160,379 174,207 192,468 Operating Revenue CAGR: 22% Net Interest Income CAGR: 22% Non-interest Income CAGR: 25% Non-interest Expense CAGR: 23%

2004 2005 2006 2007 2008 Q1-2009 Demand Deposits 398 512 514 529 587 609 Interest Bearing Deposits 1392 1983 2555 2537 2746 2402 Deposit and Loan Growth Loans HFI* Interest Bearing Deposits Demand Deposits * Excludes loans held for sale. 2004 2005 2006 2007 2008 Q1-2009 Loans Held for Investment 1565 2076 2722 3462 4028 4019 2004 2005 2006 2007 2008 ($ in millions) 2009 Demand Deposit CAGR: 11% Total Deposit CAGR: 13% Loans Held for Investment CAGR: 25%

Loan Portfolio Statistics Non-accrual loans Commercial 13,459 Construction 29,493 Real estate 3,594 Consumer 86 Equipment leases 4,051 Total non-accrual loans $ 50,683 Non-accrual loans as % of total loans 1.14% ORE 27,501 Total Non-accruals + ORE $ 78,184 Non-accrual loans + ORE as % of loans held for investment + ORE 1.93% Total Loans $4,446,229 All numbers in thousands.

Credit Quality Credit experience remains relatively good Weakness continues to be manageable Net charge-offs of $2.6 million in Q1-2009 Net charge-offs represent 26 bps for the quarter NCO's related to identified problems substantially covered with allocated reserves in prior periods Increase in non-performing loan levels not unexpected due to economic impact, but receiving continued intense focus Non-performing loans as a percent of loans held for investment were 1.38% Provision of $8.5 million in Q1-2009 Reserve balance increased to 1.31% Provision driven by methodology, which includes factors related to challenging economic conditions Current appraisals continue to support collateral values Tightened credit standards warranted by industry conditions

Credit Quality Reserve / Loans* 1.31% 1.16% .95% .77% .91% Non-accrual loans + ORE to loans* + ORE 1.93% 1.81% ..69% ..37% ..27% Reserve to non-accruals 1.0x 1.0x 1.5x 2.3x 3.3x Reserve to NPL 1.0x .9x 1.3x 1.9x 2.2x Net Charge-offs / Average Loans YTD 2009 2008 2007 2006 2005 * Excludes loans held for sale.

Closing Comments Continued intense focus on maintaining credit quality Positioned to take advantage of opportunity for people and customers

Q & A