ROSEMONT, Ill., Oct. 28 /PRNewswire-FirstCall/ -- Taylor Capital Group, Inc. (the "Company") TAYC, the parent company of Cole Taylor Bank (the "Bank"), today reported results for the third quarter of 2009. For the three months ended September 30, 2009, the Company reported a net loss applicable to common stockholders of $5.3 million, or $0.51 per diluted common share, compared to a net loss applicable to common stockholders of $26.1 million, or $2.49 per diluted common share, for the second quarter of 2009.

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Financial Highlights

• Total revenue (net interest income plus noninterest income excluding securities gains) for the third quarter of 2009 was $35.4 million, up from $34.9 million for the second quarter of 2009.
• For the fourth consecutive quarter, the Company's net interest margin increased over the previous quarter's margin. The net interest margin in the third quarter of 2009 was 2.92%, up from the 2.76% recorded for the second quarter of 2009.
• Noninterest expense decreased by $1.2 million, or 5% in the third quarter, as salaries and benefits and most other categories of overhead expense declined, reflecting continued favorable results from the Company's effective expense management.
• The Company's income before taxes, loan loss provision, securities gains and a second quarter special FDIC assessment was $12.9 million for the third quarter of 2009, down slightly from $13.3 million in the second quarter of 2009.
• The Company continued to reduce its reliance on more costly, brokered sources of funds as out-of-market deposits declined in the third quarter by $128.3 million, or 15%.
• For the third quarter of 2009, the provision for loan losses declined to $15.5 million, down from $39.5 million for the second quarter of 2009.
• The Company's capital ratios remain well above all regulatory requirements for well-capitalized banks.
  

For the first nine months of 2009, the Company reported a net loss applicable to common stockholders of $37.1 million, or $3.54 per diluted common share, compared to a net loss applicable to common stockholders of $126.4 million, or $12.10 per diluted common share, for the first nine months of 2008.

"Third quarter results for our core banking operations continued the Bank's favorable trend, demonstrating the soundness of our strategy even in this extremely difficult economic period," said Taylor Capital Chairman Bruce W. Taylor. "Additional improvement in total revenue, the net interest margin and a reduced cost of overhead are positive trends that we've worked hard to achieve. The Bank and our clients will continue to face challenges from the lingering effects of the recession but our investment in talent and resources - especially in our core commercial and asset based lending businesses - are major building blocks for the Bank moving forward."

"While the last quarter was encouraging in terms of new business generation, we're being pragmatic," said Mark A. Hoppe, President and Chief Executive Officer of Cole Taylor Bank. "We're realistic about the current lending climate and diligent about asset quality, but also proud of our ability to continue to make loans to new and existing clients. In the third quarter, we added nearly a quarter of a billion dollars in new loan commitments and more than $100 million in new loans. We are especially pleased with the growth in our Asset Based Lending group, which booked more than $250 million in new loan commitments in the last year. Our business development and customer relationship management efforts continue to strengthen and support our goal of being a leader in Chicago area business banking."

Revenue

For the third quarter of 2009, the Company's net interest income increased to $32.4 million, up from $30.4 million reported for the second quarter of 2009.

The tax equivalent net interest margin was 2.92% for the third quarter of 2009, up 16 basis points from 2.76% in the second quarter. The increase was attributable to a reduction in the Company's cost of funds.

Noninterest income for the third quarter of 2009 totaled $3.4 million, down from $12.1 million in the prior quarter, primarily attributable to a $7.2 million decrease in gains on sales of investment securities and a $1.4 million loss associated with hedges placed on the single family mortgage loans held for sale. In the second quarter of 2009, the Company recorded a $7.6 million gain on investment securities as it sold $207 million in mortgage backed securities.

Expense

Noninterest expense totaled $22.5 million for the third quarter of 2009 as compared to $23.7 million for the second quarter of 2009. Salaries and benefits and most other categories of operating expenses decreased in the third quarter of 2009 as compared to the second quarter. Non-performing asset expense increased $2.1 million in the third quarter, largely due to an increase in the reserve for losses on unfunded loans and higher losses on the disposition of other real estate. In the second quarter, FDIC assessments included a one-time, industry-wide FDIC special assessment which amounted to $2.1 million for Cole Taylor Bank.

Balance Sheet

As of September 30, 2009, the Company's assets totaled $4.5 billion, unchanged from total assets reported as of June 30, 2009.

Total loans at September 30, 2009, included $2.9 billion of portfolio loans and $102.8 million of loans held for sale. Loans held for sale included both nonaccrual commercial loans, which the Company anticipates selling in the fourth quarter, and single family home mortgage loans. As previously disclosed, during the third quarter of 2009, the Company purchased a participation interest in pools of residential mortgage loans, with an aggregate principal amount of approximately $100 million. These loans were to be pooled into pass-through securities issued by the mortgage loan originator and then sold to third party investors. The Company took possession of the underlying mortgage loans when the originator could not securitize all the loans as originally contemplated. The Company is currently working with alternate issuers to dispose of the remaining mortgage loans currently held for sale.

Total portfolio loans decreased in the third quarter of 2009 as the Company continued its strategic realignment of the loan portfolio. Growth in new loans of over $100 million was offset by reductions in categories of loans in which the Company sought to reduce its exposure, as well as the ongoing, recession-driven effects of an unusually low rate of loan commitment usage.

At September 30, 2009, the Company's total deposits were $3.1 billion, down from $3.2 billion at June 30, 2009. The decline in deposits was primarily attributable to reductions in out-of-market deposits, which fell by $128.3 million, or 15%. This decline was part of the Company's ongoing effort to reduce its reliance on brokered funds. In-market deposits declined by $23.5 million as increases in commercial relationship demand deposits and money market accounts were more than offset by planned reductions in higher-rate certificates of deposit.

Notes payable and other advances increased by $100.0 million to $617.0 million as the Company sought to take advantage of attractively priced short term advances such as the Federal Reserve Bank's Term Auction Facility.

Credit Quality

At September 30, 2009, total non-performing assets decreased to $196.3 million from the $212.9 million reported at June 30, 2009.

Nonaccrual loans decreased to $163.8 million at September 30, 2009, from $189.4 million at June 30, 2009, primarily due to $41.3 million of net charge-offs during the third quarter. These net charge-offs were partially offset by increases in new nonaccrual loans. Nonaccrual loans and charge-offs in the third quarter of 2009 were also impacted by the Company's continued efforts to resolve its nonperforming loans. During the third quarter, the Company sold, or transferred to held for sale, $51.8 million of nonaccrual loans. In connection with the sale or transfer, the Company had charged-off $3.2 million more than the specific allowance for loan losses related to these nonaccrual loans. In the fourth quarter, the Company expects to complete the disposition of the nonaccrual commercial loans currently classified as held for sale.

Loans past due 90 days or more increased $11.8 million in the third quarter, primarily due to one commercial lending relationship. Other real estate owned declined to $20.3 million at September 30, 2009, down from $23.1 million at the end of the second quarter due to $4.4 million of asset dispositions. This was partially offset by $1.6 million in new additions.

The allowance for loan losses was $107.1 million at September 30, 2009, or 3.44% of total loans, down from the $132.9 million, or 4.18% of total loans at June 30, 2009. The sale and transfer to held for sale of nonaccrual loans reduced the allowance for loan losses during the third quarter as previously established specific allocations of the allowance for losses related to these nonaccrual loans were charged off upon sale or transfer to held for sale.

The provision for loan losses for the third quarter totaled $15.5 million, down from $39.5 million recorded for the second quarter. The $24.0 million decrease in the third quarter provision was primarily due to lower specific allocations on nonaccrual loans. Nonaccruals decreased by $25.6 million during the quarter and are anticipated to decrease further when the Company completes the disposition of the remaining commercial nonaccrual loans held for sale.

Capital

At September 30, 2009, the Company's Tier I Risk Based Capital ratio was 9.86%, while its Total Risk Based Capital ratio was 12.75%. Both ratios exceed all regulatory requirements for well-capitalized banks, which are 6.00% and 10.00%, respectively. The Company's Tier I Capital to Average Assets leverage ratio at September 30, 2009 was 7.47%.

About Taylor Capital Group, Inc. (NASDAQ: TAYC)

Taylor Capital Group, Inc. is a $4.5 billion bank holding company for Cole Taylor Bank, a Chicago-based commercial bank specializing in serving the banking needs of closely held businesses and the people who own and manage them. Cole Taylor is a member of the FDIC and an Equal Housing Lender.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "might," "plan," "prudent," "potential," "should," "will," "expect," "anticipate," "believe," "intend," "could," "estimate" and similar expressions. These forward-looking statements are based on information currently available to us and are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities in 2009 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation: the effect on our profitability if interest rates fluctuate as well as the effect of our customers' changing use of our deposit products; the possibility that our wholesale funding sources may prove insufficient to replace deposits at maturity and support our growth; the risk that our allowance for loan losses may prove insufficient to absorb probable losses in our loan portfolio; possible volatility in loan charge-offs and recoveries between periods; the decline in residential real estate sales volume and the likely potential for continuing illiquidity in the real estate market, including within the Chicago metropolitan area; the risks associated with the high concentration of commercial real estate loans in our portfolio; the uncertainties in estimating the fair value of developed real estate and undeveloped land in light of declining demand for such assets and continuing illiquidity in the real estate market; the risks associated with management changes, employee turnover and our commercial banking growth initiative, including our expansion of our asset-based lending operations and our entry into new geographical markets; negative developments and disruptions in the credit and lending markets, including the impact of the ongoing credit crisis on our business and on the businesses of our customers as well as other banks and lending institutions with which we have commercial relationships; a continuation of the recent unprecedented volatility in the capital markets; the effectiveness of our hedging transactions and their impact on our future results of operations; the risks associated with implementing our business strategy and managing our growth effectively, including our ability to preserve and access sufficient capital to execute on our strategy; changes in general economic and capital market conditions, interest rates, our debt credit ratings, deposit flows, loan demand, including loan syndication opportunities and competition; changes in legislation or regulatory and accounting principles, policies or guidelines affecting our business; and other economic, competitive, governmental, regulatory and technological factors impacting our operations.

For further information about these and other risks, uncertainties and factors, please review the disclosure included in the section captioned "Risk Factors" in our December 31, 2008 Annual Report on Form 10-K filed with the SEC on March 11, 2009. You should not place undue reliance on any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements or risk factors, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release.

                              TAYLOR CAPITAL GROUP, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                    (in thousands)

                                   (Unaudited)  (Unaudited)
                                     Sept. 30,    June 30,   Dec. 31,
                                         2009       2009        2008
                                         ----       ----        ----
    ASSETS
    Cash and cash equivalents        $47,533     $69,700     $53,012
    Investment securities          1,306,098   1,306,174   1,094,594
    Loans held for sale, at
     lower of cost or market         102,765          --          --
    Loans, net of allowance for
     loan losses of  $107,132,
     $132,927 and $128,548 at
     September 30, 2009, June
     30, 2009 and December 31,
     2008, respectively            2,904,357   3,044,812   3,104,713
    Premises, leasehold
     improvements and
     equipment, net                   15,742      16,097      17,124
    Investment in Federal Home
     Loan Bank and Federal
     Reserve Bank stock               35,741      35,741      29,630
    Other real estate and
     repossessed assets, net          20,313      23,070      13,179
    Other assets                      52,532      52,731      76,637
                                      ------      ------      ------

              Total assets        $4,485,081  $4,548,325  $4,388,889
                                  ==========  ==========  ==========


    LIABILITIES AND
     STOCKHOLDERS' EQUITY
    Deposits:
       Noninterest-bearing          $615,590    $597,734    $470,990
       Interest-bearing            2,437,139   2,606,840   2,660,056
                                   ---------   ---------   ---------
         Total deposits            3,052,729   3,204,574   3,131,046
    Other borrowings                 327,692     315,244     275,560
    Accrued interest, taxes and
     other liabilities                56,440      97,772      71,286
    Notes payable and other
     advances                        617,000     517,000     462,000
    Junior subordinated
     debentures                       86,607      86,607      86,607
    Subordinated notes, net           55,593      55,493      55,303
                                      ------      ------      ------
            Total liabilities      4,196,061   4,276,690   4,081,802
                                   ---------   ---------   ---------

    Stockholders' equity:
      Preferred stock, Series A       60,000      60,000      60,000
      Preferred stock, Series B       98,474      98,110      97,314
      Common stock                       120         121         121
      Surplus                        225,951     225,538     224,872
      Accumulated deficit           (104,708)    (99,386)    (69,294)
      Accumulated other
       comprehensive income, net      33,819      11,888      18,710
      Treasury stock                 (24,636)    (24,636)    (24,636)
                                     -------     -------     -------
        Total stockholders' equity   289,020     271,635     307,087
                                     -------     -------     -------

            Total liabilities and
             stockholders' equity $4,485,081  $4,548,325  $4,388,889
                                  ==========  ==========  ==========

TAYLOR CAPITAL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data)

                                                               For the Nine
                                 For the Three Months Ended    Months Ended
                                Sept.     June     Sept.      Sept.      Sept.
                                 30,       30,      30,        30,        30,
                                2009      2009      2008      2009       2008
                                ----      ----      ----      ----       ----
    Interest income:
       Interest and fees
        on loans             $40,749   $39,552   $40,069  $119,668   $117,047
       Interest and
        dividends on
        investment
        securities:
         Taxable              13,921    14,745     8,664    42,179     27,019
         Tax-exempt            1,360     1,416     1,449     4,203      4,387
       Interest on cash
        equivalents                3         2       582        15      1,371
                                 ---       ---       ---       ---      -----
            Total interest
             income           56,033    55,715    50,764   166,065    149,824
                              ------    ------    ------   -------    -------

    Interest expense:
       Deposits               16,629    18,223    23,456    54,911     65,035
       Other borrowings        2,210     2,232     2,364     6,618      7,454
       Notes payable and
        other advances         1,718     1,719     1,298     4,956      4,045
       Junior subordinated
        debentures             1,477     1,541     1,715     4,618      5,320
       Subordinated notes      1,624     1,620        33     4,861         33
                               -----     -----       ---     -----        ---
            Total interest
             expense          23,658    25,335    28,866    75,964     81,887
                              ------    ------    ------    ------     ------

    Net interest income       32,375    30,380    21,898    90,101     67,937
    Provision for loan
     losses                   15,539    39,507    52,700    70,609    113,805
                              ------    ------    ------    ------    -------
       Net interest income
        (loss) after
        provision for loan
        losses                16,836    (9,127)  (30,802)   19,492    (45,868)
                              ------    ------   -------    ------    -------

       Noninterest income:
       Service charges         2,892     2,768     2,256     8,481      6,677
       Trust and
        investment
        management fees          332       475       894     1,341      2,736
       Mortgage banking
        activities            (1,351)       --        --    (1,305)        23
       Gains on investment
        securities               378     7,595        --     8,637         --
       Other derivative
        income                   108       153       154     1,380      1,106
       Other noninterest
        income                 1,017     1,146       (84)    2,322        810
                               -----     -----       ---     -----        ---
            Total noninterest
             income            3,376    12,137     3,220    20,856     11,352
                               -----    ------     -----    ------     ------

    Noninterest expense:
       Salaries and
        employee benefits     10,440    11,004    14,948    31,976     37,747
       Occupancy of
        premises               2,017     2,013     1,943     6,079      5,773
       Furniture and
        equipment                531       526       830     1,625      2,498
       FDIC assessment         2,314     4,368       779     8,213      1,891
       Legal fees, net         1,430     1,655     1,841     4,225      3,195
       Non-performing
        asset expense          2,295       224     1,398     3,273      4,877
       Early
        extinguishment of
        debt                      --        --       412       527      1,606
       Other noninterest
        expense                3,489     3,917     5,150    11,470     14,153
                               -----     -----     -----    ------     ------
            Total noninterest
             expense          22,516    23,707    27,301    67,388     71,740
                              ------    ------    ------    ------     ------

    Loss before income
     taxes                    (2,304)  (20,697)  (54,883)  (27,040)  (106,256)
    Income tax expense           144     2,558    25,653     1,481      3,436
                                 ---     -----    ------     -----      -----
       Net loss               (2,448)  (23,255)  (80,536)  (28,521)  (109,692)
    Preferred dividends
     and discounts            (2,873)   (2,868)        -    (8,603)         -
    Implied non-cash
     preferred dividend            -         -   (16,680)        -    (16,680)
                                 ---       ---   -------       ---    -------
     Net loss applicable
     to common
     stockholders            $(5,321) $(26,123) $(97,216) $(37,124) $(126,372)
                             =======  ========  ========  ========  =========

    Basic loss per
     common share             $(0.51)   $(2.49)   $(9.30)   $(3.54)   $(12.10)
    Diluted loss per
     common share              (0.51)    (2.49)    (9.30)    (3.54)    (12.10)
                               =====     =====     =====    ======     ======

'

TAYLOR CAPITAL GROUP, INC. COMPOSITION OF LOAN PORTFOLIO (unaudited) (dollars in thousands)

    The following table presents the composition of the Company's loan
    portfolio as of the dates indicated:

                           September 30,          June 30,        December 31,
                               2009                 2009              2008
                               ----                 ----              ----
                                 Percent            Percent           Percent
                                 of Gross           of Gross          of Gross
    Loans:             Balance    Loans   Balance    Loans    Balance   Loans
    -----              -------    -----   -------    -----    -------   -----
    Commercial
     and
    industrial        $1,292,091   42.9% $1,379,615   43.4% $1,485,673   45.9%
    Commercial
     real
     estate
     secured           1,156,114   38.4   1,154,971   36.4   1,058,930   32.8
    Residential
    construction
     & land              247,386    8.2     312,978    9.8     349,998   10.8
    Commercial
    construction
     & land              160,534    5.3     163,965    5.2     181,454    5.6
                         -------    ---     -------    ---     -------    ---
          Total
          commercial
           loans       2,856,125   94.8   3,011,529   94.8   3,076,055   95.1
    Consumer-oriented
     loans               155,372    5.2     166,220    5.2     157,222    4.9
                         -------    ---     -------    ---     -------    ---
       Gross
        loans          3,011,497  100.0%  3,177,749  100.0%  3,233,277  100.0%
                                  =====              =====              =====
    Less:
      Unearned
     discount                 (8)               (10)               (16)
                             ---                ---                ---
       Total
        loans          3,011,489          3,177,739          3,233,261
    Less:
      Loan
     loss
    allowance           (107,132)          (132,927)          (128,548)
                       ---------          ---------          ---------
       Net loans      $2,904,357         $3,044,812         $3,104,713
                      ==========         ==========         ==========
    Loans Held
     for Sale           $102,765                 --                 --
                        ========                ===                ===

The following table presents the composition of the Company's residential

construction and land portfolios as of the dates indicated:

                                 September 30,      June 30,     December 31,
                                     2009             2009           2008
                                     ----             ----           ----
                                       Percent           Percent       Percent
                                         of                of             of
                                Balance Total   Balance  Total  Balance  Total
                                ------- -----   -------  -----  -------  -----
    Single family attached
     and detached housing       $57,854  23.4% $100,086  32.0% $105,526  30.2%
    Condo (new &
     conversions)                58,651  23.7    81,812  26.2    95,705  27.3
    Multi-family                 57,967  23.4    58,909  18.8    57,495  16.4
    Completed for sale           14,889   6.0     8,858   2.8    16,830   4.8
                                 ------   ---     -----   ---    ------   ---
        Total residential
         construction           189,361  76.5   249,665  79.8   275,556  78.7

    Land - unimproved &
     farmland                    41,184  16.6    43,050  13.8    52,321  15.0
    Land - improved &
     entitled                     2,472   1.0     3,282   1.0     3,921   1.1
    Land - under
     development                 14,369   5.9    16,981   5.4    18,200   5.2
                                 ------   ---    ------   ---    ------   ---
        Total land               58,025  23.5    63,313  20.2    74,442  21.3
                                 ------  ----    ------  ----    ------  ----
          Total residential
           construction and
           land                $247,386 100.0% $312,978 100.0% $349,998 100.0%
                               ======== =====  ======== =====  ======== =====

TAYLOR CAPITAL GROUP, INC. CREDIT QUALITY (unaudited) (dollars in thousands)

                                              At or for the Three Months Ended
                                                Sept. 30,   June 30,  Dec. 31,
    Nonperforming Assets:                         2009       2009      2008
    ---------------------                         ----       ----      ----
    Loans contractually past due 90 days
     or more but still accruing interest        $12,190      $379      $153
    Nonaccrual loans:
      Commercial and industrial                  31,191    38,554    42,263
      Commercial real estate secured             36,824    30,856    23,068
      Residential construction and land          78,224   101,921   114,160
      Commercial construction and land            7,854    11,266    14,934
      All other loan types                        9,737     6,840     5,802
                                                  -----     -----     -----
        Total nonaccrual loans                  163,830   189,437   200,227
                                                -------   -------   -------
             Total nonperforming loans          176,020   189,816   200,380
    Other real estate owned and
     repossessed assets                          20,313    23,070    13,179
                                                 ------    ------    ------
        Total nonperforming assets             $196,333  $212,886  $213,559
                                               ========  ========  ========

    Other Credit Quality Information:
    Loans contractually past due 30
     through 89 days and still accruing         $18,339   $16,346   $25,272
    Restructured loans not included in
     nonperforming assets                         4,825     4,375        --
    Recorded balance of impaired loans          162,986   197,675   206,705
    Allowance for loan losses related to
       impaired loans                            35,453    68,963    41,451
                                                 ======    ======    ======

    Allowance for Loan Losses Summary:
    Allowance at beginning of period           $132,927  $130,282  $117,967
    Net (charge-offs) recoveries:
        Commercial and commercial real estate   (14,091)  (21,691)     (357)
        Real estate - construction and land     (27,091)  (15,110)  (19,050)
        Total consumer-oriented loans              (152)      (61)     (365)
                                                   ----       ---      ----
    Total net charge-offs                       (41,334)  (36,862)  (19,772)
    Provision for loan losses                    15,539    39,507    30,353
                                                 ------    ------    ------
    Allowance at end of period                 $107,132  $132,927  $128,548
                                               ========  ========  ========

    Key Credit Ratios:
    Nonperforming loans to total loans             5.65%     5.97%     6.20%
    Nonperforming assets to total loans
     plus repossessed property                     6.26%     6.65%     6.58%
    Nonperforming assets to total assets           4.38%     4.68%     4.87%
    Annualized net charge-offs to average
     total loans                                   5.20%     4.63%     2.47%
    Allowance to total loans at end of
     period                                        3.44%     4.18%     3.98%
    Allowance to nonperforming loans              60.86%    70.03%    64.15%
    30 - 89 days past due to total loans           0.58%     0.51%     0.78%
                                                   ====      ====      ====

                            TAYLOR CAPITAL GROUP, INC.
                          FUNDING LIABILITIES (unaudited)
                              (dollars in thousands)

    The following table presents the distribution of the Company's average
    deposit account balances for the periods indicated:

                                          For the Quarter Ended
                                          ---------------------
                            September 30,       June 30,       September 30,
                                 2009             2009              2008
                                 ----             ----              ----
                                   Percent            Percent          Percent
                          Average    of      Average    of    Average    of
                          Balance Deposits   Balance Deposits Balance Deposits
                          ------- --------   ------- -------- ------- --------
    In-market deposits:
        Noninterest-
         bearing deposits $598,760  19.2%   $578,020  18.3%   $404,580   13.0%
        NOW accounts       223,386   7.2     224,987   7.1     144,410    4.6
        Savings deposits    41,839   1.3      42,227   1.3      43,924    1.4
        Money market
         accounts          407,298  13.0     408,149  12.9     478,396   15.4
        Customer
         certificates
         of deposit        826,911  26.4     841,533  26.6     801,047   25.8
        CDARS time
         deposits          154,979   5.0     105,847   3.4           -      -
        Public time
         deposits           76,625   2.4      75,853   2.4      76,463    2.5
                            ------   ---      ------   ---      ------    ---
    Total in-market
     deposits            2,329,798  74.5   2,276,616  72.0   1,948,820   62.7

    Out-of-market
    deposits:
       Brokered NOW
        accounts                 -     -         515     *         287      *
       Brokered money
        market deposits      9,390   0.3      21,467   0.7      99,011    3.2
       Out-of-local-market
        certificates of
        deposit             99,665   3.2     112,653   3.6     163,372    5.3
       Brokered
        certificates
        of deposit         686,868  22.0     747,172  23.7     892,378   28.8
                           -------  ----     -------  ----     -------   ----
    Total
     out-of-market
     deposits              795,923  25.5     881,807  28.0   1,155,048   37.3
                           -------  ----     -------  ----   ---------   ----
    Total
     deposits           $3,125,721 100.0% $3,158,423 100.0% $3,103,868  100.0%
                        ========== =====  ========== =====  ========== ======

         *Less than 0.1%.

The following table sets forth the period end balances of total deposits

as of each of the dates indicated below, as well as categorizes the

Company's deposits as "in-market" and "out-of-market" deposits:

                                             Sept. 30,   June 30,    Dec. 31,
                                                2009       2009       2008
                                                ----       ----       ----
    In-market deposits:
         Noninterest-bearing deposits       $615,590   $597,734   $470,990
         NOW accounts                        213,668    237,617    218,146
         Savings accounts                     41,534     41,784     42,275
         Money market accounts               456,795    400,591    320,691
         Customer certificates of deposit    774,082    830,268    870,183
         CDARS time deposits                 145,889    167,315      5,670
         Public time deposits                 78,090     73,867     84,831
                                              ------     ------     ------
     Total in-market deposits              2,325,648  2,349,176  2,012,786

    Out-of-market deposits:
         Brokered NOW accounts                    --         --        305
         Brokered money market deposits        9,052      9,584     73,352
         Out-of-local-market certificates
          of deposit                          95,990    107,525    136,470
         Brokered certificates of deposit    622,039    738,289    908,133
                                             -------    -------    -------
     Total out-of-market deposits            727,081    855,398  1,118,260
                                             -------    -------  ---------

      Total deposits                      $3,052,729 $3,204,574 $3,131,046
                                          ========== ========== ==========

Taylor Capital Group, Inc.

Summary of Key Financial Data

Dollars in Thousands

Unaudited 2009 2008 ---- ---- Third Second First Fourth Third Quarter Quarter Quarter Quarter Quarter ------- ------- ------- ------- -------

Condensed Income Data:

----------------------

Net interest

income $32,375 $30,380 $27,346 $24,414 $21,898

Provision for

loan losses 15,539 39,507 15,563 30,353 52,700

Total

noninterest

income 3,376 12,137 5,343 1,085 3,220

Total

noninterest

expense 22,516 23,707 21,165 21,630 27,301 ------ ------ ------ ------ ------

Loss before

income taxes (2,304) (20,697) (4,039) (26,484) (54,883)

Income tax

expense

(benefit) 144 2,558 (1,221) (11,648) 25,653 --- ----- ------ ------- ------

Net loss (2,448) (23,255) (2,818) (14,836) (80,536)

Preferred

dividends and

discounts (2,873) (2,868) (2,862) (2,150) (16,680) ------ ------ ------ ------ -------

Net loss

applicable to

common

stockholders $(5,321) $(26,123) $(5,680) $(16,986) $(97,216) ======= ======== ======= ======== ========

    Per Share Data:
    ---------------
    Basic loss
     per common
     share             $(0.51)     $(2.49)     $(0.54)     $(1.62)     $(9.30)
    Diluted loss
     per common
     share              (0.51)      (2.49)      (0.54)      (1.62)      (9.30)
    Cash
     dividends per
     common share           -           -           -           -           -
    Book value
     per common
     share              11.78       10.24       13.85       13.47       12.59
    Weighted
     average
     shares-basic  10,502,844  10,492,789  10,471,516  10,458,851  10,456,544
    Weighted
     average
     shares-
     diluted       10,502,844  10,492,789  10,471,516  10,458,851  10,456,544
    Shares
     outstanding-
     end of period 11,078,011  11,081,429  11,093,349  11,115,936  11,011,184

    Performance Ratios
     (annualized):
    ------------------
    Loss on
     average
     assets             -0.22%      -2.04%      -0.25%      -1.39%      -8.22%
    Loss on
     average
     equity             -3.58%     -30.20%      -3.69%     -24.14%    -145.51%
    Efficiency
     ratio (1)          63.65%      67.89%      66.09%      77.53%     108.69%

    Average Balance Sheet
     Data (2):
    ---------------------
    Total assets   $4,543,191  $4,570,534  $4,434,293  $4,267,048  $3,918,831
    Investments     1,325,722   1,341,763   1,150,587   1,026,848     829,206
    Cash
     equivalents        2,637         527       2,473      16,224     121,498
    Loans           3,180,992   3,187,740   3,238,537   3,203,811   2,909,799
    Total
     interest-
     earning
     assets         4,509,351   4,530,030   4,391,597   4,246,883   3,860,503
    Interest-
     bearing
     deposits       2,526,961   2,580,403   2,632,961   2,758,703   2,699,288
    Borrowings      1,074,533   1,027,010     909,565     753,070     544,005
    Total
     interest-
     bearing
     liabilities    3,601,494   3,607,413   3,542,526   3,511,774   3,243,293
    Noninterest-
     bearing
     deposits         598,760     578,020     519,187     446,693     404,580
    Total
     stockholders'
      equity          273,504     307,977     305,111     245,836     221,394

    Tax Equivalent Net
     Interest Margin:
    ------------------
    Net interest
     income as
     stated           $32,375     $30,380     $27,346     $24,414     $21,898
      Add:  Tax
             equivalent
             adjust.-
             investment
             (3)          732         763         768         777         780
            Tax
             equivalent
             adjust.-
             loans
             (3)           29          29          29          32          31
                          ---         ---         ---         ---         ---
    Tax
     equivalent
     net interest
     income           $33,136     $31,172     $28,143     $25,223     $22,709
                      =======     =======     =======     =======     =======
    Net interest
     margin
     without tax
     adjust.             2.86%       2.69%       2.51%       2.29%       2.26%
    Net interest
     margin - tax
     equivalent
     (3)                 2.92%       2.76%       2.58%       2.37%       2.35%
    Yield on
     earning
     assets
     without tax
     adjust.             4.94%       4.93%       5.00%       5.12%       5.24%
    Yield on
     earning
     assets - tax
     equivalent
     (3)                 5.01%       5.00%       5.07%       5.20%       5.32%
    Yield on
     interest-
     bearing
     liabilities         2.61%       2.82%       3.09%       3.42%       3.54%
    Net interest
     spread -
     without tax
     adjust.             2.34%       2.11%       1.91%       1.70%       1.70%
    Net interest
     spread - tax
     equivalent
     (3)                 2.40%       2.18%       1.98%       1.78%       1.78%

                          Year To Date
                            Sept. 30,
                            ---------
                         2009        2008
                         ----        ----
    Condensed Income Data:
    ----------------------
    Net interest
     income           $90,101     $67,937
    Provision for
     loan losses       70,609     113,805
    Total
     noninterest
     income            20,856      11,352
    Total
     noninterest
     expense           67,388      71,740
                       ------      ------
    Loss before
     income taxes     (27,040)   (106,256)
    Income tax
     expense
     (benefit)          1,481       3,436
                        -----       -----
    Net loss          (28,521)   (109,692)
    Preferred
     dividends and
     discounts         (8,603)    (16,680)
                       ------     -------
    Net loss
     applicable to
     common
     stockholders    $(37,124)  $(126,372)
                     ========   =========

    Per Share Data:
    ---------------
    Basic loss
     per common
     share             $(3.54)    $(12.10)
    Diluted loss
     per common
     share              (3.54)     (12.10)
    Cash
     dividends per
     common share           -        0.10
    Book value
     per common
     share              11.78       12.59
    Weighted
     average
     shares-basic  10,489,165  10,447,264
    Weighted
     average
     shares-
     diluted       10,489,165  10,447,264
    Shares
     outstanding-
     end of period 11,078,011  11,011,184

    Performance Ratios
     (annualized):
    ------------------
    Loss on
     average
     assets             -0.84%      -4.00%
    Loss on
     average
     equity            -12.87%     -60.04%
    Efficiency
     ratio (1)          65.86%      90.48%

    Average Balance Sheet
     Data (2):
    ---------------------
    Total assets   $4,516,405  $3,657,857
    Investments     1,273,332     851,212
    Cash
     equivalents        1,880      80,075
    Loans           3,202,212   2,652,022
    Total
     interest-
     earning
     assets         4,477,424   3,583,309
    Interest-
     bearing
     deposits       2,579,720   2,428,925
    Borrowings      1,004,307     543,548
    Total
     interest-
     bearing
     liabilities    3,584,027   2,972,473
    Noninterest-
     bearing
     deposits         565,614     396,774
    Total
     stockholders'
      equity          295,415     243,580

    Tax Equivalent Net
     Interest Margin:
    ------------------
    Net interest
     income as
     stated           $90,101     $67,937
      Add:  Tax
             equivalent
             adjust.-
             investment
             (3)        2,263       2,363
            Tax
             equivalent
             adjust.-
             loans
             (3)           86          94
                          ---         ---
    Tax
     equivalent
     net interest
     income           $92,450     $70,394
                      =======     =======
    Net interest
     margin
     without tax
     adjust.             2.69%       2.53%
    Net interest
     margin - tax
     equivalent
     (3)                 2.76%       2.62%
    Yield on
     earning
     assets
     without tax
     adjust.             4.95%       5.58%
    Yield on
     earning
     assets - tax
     equivalent
     (3)                 5.02%       5.67%
    Yield on
     interest-
     bearing
     liabilities         2.83%       3.68%
    Net interest
     spread -
     without tax
     adjust.             2.12%       1.90%
    Net interest
     spread - tax
     equivalent
     (3)                 2.19%       1.99%

                    Sept. 30,    June 30,    Mar. 31,    Dec. 31,   Sept. 30,
                         2009        2009        2009        2008       2008
                         ----        ----        ----        ----       ----
    Condensed Balance
     Sheet Data:
    -----------------
    Investment
     securities    $1,306,098  $1,306,174  $1,321,605  $1,094,594   $794,727
    Loans           3,114,254   3,177,739   3,214,096   3,233,261  3,078,427
    Allowance for
     loan losses      107,132     132,927     130,282     128,548    117,967
    Total assets    4,485,081   4,548,325   4,596,701   4,388,889  4,074,750
    Total deposits  3,052,729   3,204,574   3,147,653   3,131,046  3,221,581
    Total
     borrowings     1,086,892     974,344   1,060,212     879,470    594,049
    Total
     stockholders'
      equity          289,020     271,635     311,425     307,087    198,581

    Asset Quality Ratios:
    ---------------------
    Nonperforming
     loans           $176,020    $189,816    $184,297    $200,380   $196,599
    Nonperforming
     assets           196,333     212,886     202,529     213,559    200,716
    Allowance for
     loan losses
     to total
     loans               3.44%       4.18%       4.05%       3.98%      3.83%
    Allowance for
     loan losses
     to
     nonperforming
      loans             60.86%      70.03%      70.69%      64.15%     60.00%
    Nonperforming
     assets to
     total loans
     plus
    repossessed
     property            6.26%       6.65%       6.27%       6.58%      6.51%

    Capital Ratios
     (Taylor Capital
      Group, Inc.):
    ----------------
    Total Capital
     (to Risk
     Weighted
     Assets)            12.75%      12.51%      12.87%      13.02%     10.97%
    Tier I
     Capital (to
     Risk Weighted
     Assets).            9.86%       9.67%      10.07%      10.22%      7.61%
    Leverage (to
     average
     assets)             7.47%       7.52%       8.29%       8.73%      6.79%

    Footnotes:
    ----------
    (1)  Efficiency ratio is determined by dividing noninterest expense by an
         amount equal to net interest income plus
         noninterest income, adjusted for gains or losses from  investment
         securities.
    (2)  Average balances are daily averages.
    (3)  This adjustment reflects tax-exempt interest income on an equivalent
         before-tax basis assuming a tax rate of 35.0%.

SOURCE Taylor Capital Group, Inc.

Copyright 2009 PR Newswire

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