BankCap Partners Launches Inaugural $200 Million Fund.

DALLAS -- BankCap Partners (BankCap), a Dallas-based private equity firm, today announced the launch of its inaugural fund, BankCap Partners Fund I, L.P. (the Fund). The Fund is seeking total capital commitments of $200 million, with minimum limited partner commitments of $1 million. The Fund intends to become a registered bank holding company and expects to build a portfolio of core investments in newly chartered banks focused on the middle-market commercial banking sector.

BankCap will target U.S. markets with strong demographic fundamentals, an attractive economic base, favorable competitive dynamics, exceptional and available local banking talent and strong local financial backing. Each bank will have an initial capitalization of at least $50 million to position it competitively in the marketplace. The Fund intends to be a large minority shareholder in its portfolio banks, investing alongside high-profile local investor groups within each selected market. Additionally, the Fund may make investments in certain other financial services or financial technology companies on an opportunistic basis. BankCap expects its first closing for the Fund in March 2006.

A unique aspect of the Fund is the strategic relationship forged with Texas Capital Bancshares, Inc. (Texas Capital or Advisor) as the Advisor to the Fund. As Advisor, TCBI will provide BankCap Partners with access to resources, relationships, and intellectual capital during the Fund formation period and collaborate with them on future investment opportunities. Texas Capital is a highly successful middle-market commercial bank that has grown organically in seven years from a newly chartered bank to $3 billion in assets. It completed a highly successful IPO in August 2003 and has a market capitalization of more than $500 million.

Additionally, Texas Capital will provide, for a fee, various banking services to the portfolio companies of the Fund through its newly formed TCB Banking Solutions subsidiary. Texas Capital has invested heavily in developing the products, processes and competencies critical to running a world-class middle-market commercial bank.

The Fund's strategy is to form and fund middle-market commercial banks in select U.S. markets and leverage the investments and expertise of Texas Capital to accelerate the development, growth and profitability of the newly formed banks.

"We're excited about the launch of our new fund and are pleased to have Texas Capital Bancshares as the Advisor to the Fund," said Brian Jones, a Principal and member of the Fund Board of Directors. "Texas Capital's success and growth over the last seven years speaks for itself, and access to the resources of Texas Capital is a tremendous asset for the Fund. We believe that many great U.S. cities have a vibrant corporate sector that is underserved by the large and small banks in those markets. These cities are in need of service-oriented midsize banks headquartered locally. Our fund is uniquely positioned to partner with local leaders and grow these institutions."

About BankCap Partners

BankCap Partners is a Dallas-based private equity firm focused on forming and funding midsized regional banks that address the banking needs of middle-market businesses and affluent individuals in their metropolitan areas. The BankCap team is comprised of its Principals, Brian D. Jones and Scott A. Reed, and its Fund Board of Directors, Joseph "Jody" M. Grant (Chairman and Chief Executive Officer of Texas Capital Bancshares, Inc.), Jim H. Graves (Chief Executive Officer of Texas Capital Investors) and William "Bill" M. Isaac (former Chairman of the FDIC and Chairman of Secura Group, a highly regarded bank consulting firm founded by Mr. Issac). Together, the BankCap team has more than 125 years of commercial banking and financial institutions experience. For more information about BankCap Partners, visit www.bankcap.com.

About Texas Capital Bancshares, Inc.

Launched in December 1998 with an initial capitalization of $80 million and believed to be the largest start-up bank in U.S. history, Texas Capital Bank, the principal subsidiary of Texas Capital Bancshares, Inc. (Nasdaq:TCBI), is a commercial bank that delivers highly personalized financial services to Texas-based businesses and private client individuals. Texas Capital Bank currently has approximately $3.0 billion in assets and has full-service locations in Austin, Dallas, Fort Worth, Houston, Plano and San Antonio.