Texas Capital Bancshares, Inc. (NASDAQ: TCBI) announced today that it
has been approved to repurchase the preferred stock it sold to the U.S.
Department of the Treasury in January 2009. The $75 million preferred
stock was issued to the Treasury Department pursuant to the Capital
Purchase Program ("CPP") established under the Troubled Asset Relief
Program ("TARP"). The Company will pay approximately $75.9 million to
the Treasury to repurchase the preferred stock, which includes the
original investment amount of $75 million plus accrued and unpaid
dividends.
As a result of the repurchase of the preferred stock, the Company will
record a reduction in retained earnings of approximately $4.0 million
related to the unaccreted difference between the carrying value of the
preferred stock and the repurchase price. The reduction will be treated
in a manner consistent with that for preferred dividends.
In connection with the issuance of the preferred stock, the Company
issued to the Treasury Department a warrant to purchase 758,086 shares
of common stock at a price of $14.84 per share. Texas Capital has not
yet determined if it will offer to repurchase the warrant or allow the
Treasury to sell the warrant in the open market.
As previously reported, the Company completed a public offering of 4
million shares of common stock on May 5, 2009. On May 8, 2009, the sole
manager of the offering, Fox-Pitt Kelton Cochran Caronia Waller (USA)
LLC, exercised its option to purchase an additional 600,000 shares of
common stock at $13.75 per share. Net proceeds of $59.7 million from the
sale of the 4.6 million shares of common stock were received by the
Company today, bringing its pro forma tangible common equity to tangible
assets ratio to 8.86% as of March 31, 2009.
"We are extremely pleased to have completed a very successful offering
of common stock along with the approved repurchase of the preferred
stock from the Treasury Department,” commented George Jones, CEO. “We
have a capital position that will support the quality growth
opportunities in our marketplace and allow us to pursue our strategic
objectives.”
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.
Texas Capital Bancshares, Inc.
Myrna Vance, 214-932-6646
myrna.vance@texascapitalbank.com
