Exhibit 99.1

Taylor Capital Reports

Second Quarter Results

CHICAGO, IL – July 29, 2010 – Taylor Capital Group, Inc. (the “Company”) (NASDAQ: TAYC), the parent company of Cole Taylor Bank, one of Chicago’s leading middle market commercial banks (the “Bank”), today reported results for the second quarter of 2010.

For the three months ended June 30, 2010, the Company posted a net loss of $30.9 million, compared to a net loss of $10.7 million for the first quarter of 2010. The net loss applicable to common stockholders for the second quarter of 2010 was $48.3 million, or $3.35 per diluted common share, compared to a net loss applicable to common stockholders of $13.6 million, or $1.30 per diluted share common share, for the first quarter of 2010. The second quarter 2010 loss applicable to common shareholders included a one-time, non-cash charge of $15.8 million, or $1.09 per diluted share, representing an inducement to the holders of all of the Company’s Series A preferred stock who converted their Series A preferred shares into common stock as part of the recently completed exchange offer. The inducement did not reduce total stockholders’ equity.

The Company’s asset quality faced ongoing challenges in the second quarter of 2010 due to persistent weakness in the Chicago-area real estate market. These challenges were the primary factor contributing to the Company’s provision and increased quarterly loss during the second quarter of 2010. However, the Company did experience ongoing revenue and core operating earning growth which shows continued strength in core operations. As part of its efforts to offset increased migration to nonaccrual loans, the Company successfully executed multiple asset disposition strategies during the second quarter of 2010.

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Financial Highlights

• Pre-tax, pre-provision earnings from core operations totaled $17.3 million for the three months ended June 30, 2010, as compared to $14.2 million for the three months ended March 31, 2010, and $11.4 million for the three months ended June 30, 2009.

• In the second quarter of 2010, total revenue (net interest income plus noninterest income less securities gains or losses) was $40.7 million, up from $36.4 million in the first quarter of 2010.

• Net interest income for the second quarter of 2010 increased to $34.7 million, up from $33.5 million in the first quarter of 2010, marking the Company’s eighth consecutive quarterly increase in net interest income.

• The Company’s net interest margin for the second quarter of 2010 was 3.17%, up from 3.15% for the first quarter of 2010.

• Noninterest expense was $27.5 million for the three months ended June 30, 2010, up slightly from $27.2 million for the three months ended March 31, 2010.

• Asset quality remained challenged in the second quarter of 2010.

• Nonaccrual loans totaled $154.3 million at June 30, 2010, as compared with $141.1 million at March 31, 2010.

• Nonperforming assets were $182.5 million, or 3.98% of total assets, at June 30, 2010, as compared to $168.5 million, or 3.73% of total assets, at March 31, 2010.

• The allowance for loan losses was $100.5 million, or 3.31% as a percent of total loans at June 30, 2010, as compared to $100.2 million or 3.33% at March 31, 2010.

• These figures are not adjusted to account for a bulk loan sale that closed in early July, after which total nonaccrual and nonperforming assets would be reduced.

• The second quarter 2010 provision for loan losses rose to $43.9 million, up from $21.1 million for the first quarter of 2010.

• During the second quarter of 2010, as part of its overall capital plan, the Company raised $75 million in new regulatory capital through the private placement of non-

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cumulative, convertible preferred stock and subordinated debt. Of the $75 million in new capital, $9.1 million remains in escrow pending regulatory approval and is not included in total regulatory capital.

• The Company’s capital ratios remain above all regulatory requirements for well-capitalized banks.

Mark A. Hoppe, President and Chief Executive Officer of Taylor Capital Group and Cole Taylor Bank, said, “We are encouraged by our sustained growth in revenue and core earnings. We remain committed to promptly addressing the impact of the continued weakness in the Chicago-area real estate market on our loan portfolio.”

Hoppe continued, “Our efforts in the second quarter resulted in continued strong core earnings growth. Revenue grew by 12% in the second quarter of 2010, with earnings from our core operations increasing $3 million from first quarter of 2010. Primarily fueled by increased net interest income, revenue growth also came from our new residential mortgage origination group. That group began doing business in January of 2010 and became profitable in the second quarter of 2010. We continue to see growth in new clients and new loans in both our core commercial banking group and in asset based lending. Together, those groups brought in approximately 30 new clients and $180 million in new commitments in the second quarter. Another significant accomplishment of the second quarter of 2010 was our successful raise of $75 million in new capital through the private placement of new non-cumulative, convertible preferred stock and subordinated debt. This raise is a strong endorsement of our strategic plan. Ultimately, while we are still facing a tough real estate market, we continue to make strong progress against our goals and are proud of the accomplishments of the second quarter.”

Pre-tax, Pre-Provision Earnings From Core Operations

The Company’s pre-tax, pre-provision earnings from core operations totaled $17.3 million for the three months ended June 30, 2010, as compared to $14.2 million for the three months ended March 31, 2010, and $11.4 million for the three months ended June

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30, 2009. The improved second quarter results were due to increased net interest income and noninterest income, along with essentially flat noninterest expense. As compared to the second quarter of 2009, pre-tax, pre-provision earnings from core operations for the second quarter of 2010 rose as a result of increases in net interest income and noninterest income. This was partially offset by higher operating expenses including costs for the new mortgage origination group, somewhat mitigated by reduced FDIC assessments. A schedule reconciling earnings in accordance with U. S. generally accepted accounting principles (“GAAP”) to the non-GAAP measurement of pre-tax, pre-provision earnings from core operations is provided in the attached tables.

Revenue

For the three months ended June 30, 2010, the Company’s net interest income increased to $34.7 million, up from $33.5 million reported for the three months ended March 31, 2010.

For the second quarter of 2010, the net interest margin was 3.17%, increased from 3.15% in the first quarter of 2010. A seven basis point decline in the Company’s yield on interest-earning assets was more than offset by a 14 point decline in the cost of funds, both due primarily to the effects of a lower interest rate environment.

Noninterest income for the second quarter of 2010 totaled $6.2 million, up from $4.4 million at March 31, 2010. This increase was primarily the result of $1.6 million in additional revenue from the Bank’s new residential mortgage origination group. This increase was also the result of a $2.0 million reduction in losses on the disposition of bulk purchased mortgage loans that were not related to the Company’s new residential mortgage origination group. Offsetting these favorable changes was a reduction of $1.3 million in gains on investment securities in the second quarter of 2010. The Bank’s other sources of noninterest income, including service charges and other fee income, were relatively unchanged.

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Expense

For the second quarter of 2010, noninterest expense totaled $27.5 million as compared to $27.2 million for the first quarter of 2010. Excluding costs associated with the new mortgage origination unit, noninterest expense would have declined by approximately $500,000 between the first quarter of 2010 and the second quarter of 2010. Reduced levels of nonperforming asset expense and FDIC assessments were partially offset by higher legal fees.

Balance Sheet

At June 30, 2010, the Company’s assets increased to $4.6 billion from $4.5 billion at March 31, 2010.

Investment securities remained flat at $1.4 billion between June 30, 2010 and March 31, 2010.

Total loans in the portfolio were $2.9 billion as of June 30, 2010, and March 31, 2010. Loan growth from new and existing clients was offset by historically low levels of client line utilization and charge-offs.

At June 30, 2010, the Company’s total deposits remained at $3.0 billion, unchanged from March 31, 2010. Decreases in noninterest bearing deposits and out-of-market deposits were offset by growth in NOW and money market accounts. This shift in the deposit mix resulted in a 4.7% increase for in-market deposits from March 31, 2010 to June 30, 2010.

Reduced levels of other borrowings and notes payable and other advances were partially offset by an increase in subordinated debt as a result of the Company’s capital raise during the second quarter of 2010.

Credit Quality

For the second quarter of 2010, the Company’s provision for loan losses was $43.9 million, up sharply from the $21.1 million recorded in the first quarter. The primary

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reason for the increase in provision was to cover the losses incurred on significant sales of real estate related nonaccrual loans. All of these sales closed during the second quarter of 2010, except for one that was completed on July 15, 2010.

Nonaccrual loans totaled $154.3 million as of June 30, 2010, an increase of $13.2 million from March 31, 2010. New nonaccrual loans during the second quarter included a $25 million well secured single commercial real estate relationship.

The sale of loans on July 15, 2010 reduced total nonaccrual loans to $136.1 million, approximately $5 million lower than the balance at March 31, 2010. The reduction in nonaccrual loans resulting from this sale was primarily in residential construction and land loans as well as loans secured by commercial real estate.

At June 30, 2010, other real estate owned totaled $28.2 million, up slightly from $27.4 million at March 31, 2010. Loans contractually past due 30 through 89 days increased to $35.9 million at June 30, 2010, up from $13.2 million at March 31, 2010, as a result of one large commercial credit that was past due at June 30, 2010.

The allowance for loan losses was $100.5 million at June 30, 2010, compared to $100.2 million at March 31, 2010. The loan loss allowance represented 3.31% of total loans at June 30, 2010, down slightly from 3.33% at March 31, 2010. As a percent of nonperforming loans, the allowance was 65.10% at June 30, 2010, down from 70.93% at March 31, 2010. After including the impact of the July 15, 2010 sale of loans, the ratio of the allowance for loan loss to nonperforming loans increases to 73.8%.

Capital

During the second quarter of 2010, the Company completed two transactions intended to further strengthen its capital position. First, it raised $75 million of new regulatory capital, which includes $9.1 million held in escrow pending regulatory approval. This capital included a private placement of non-cumulative, convertible preferred stock

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(Series C) and subordinated debt. The Company infused $25 million of the new capital into the Bank to better align its capital position to its peers and to support future growth. Second, it retired its Series A preferred shares, converting all $60 million to 7.2 million shares of common stock.

At June 30, 2010, the Company’s Tier I Risk Based Capital ratio was 9.34%, while its Total Risk Based Capital ratio was 13.20% and its Tier I Capital to Average Assets leverage ratio was 6.98%. These ratios exceed all regulatory requirements for well-capitalized banks, which are 6.00% for Tier I Risk Based Capital, 10.00% for Total Risk Based Capital and 5.00% for Tier I Capital to Average Assets.

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

Taylor Capital Group, Inc. is a $4.6 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”, “contemplate”, “plan”, “prudent”, “potential”, “should”, “will,” “expect,” “anticipate,” “believe,” “intend,” “could” and “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 2010 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

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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, 2009 Annual Report on Form 10-K filed with the SEC on March 29, 2010. 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.

Media Contact:	Christina Hachikian
	847-653-7166

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TAYLOR CAPITAL GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	(Unaudited) June 30, 2010			(Unaudited) Mar. 31, 2010			Dec. 31, 2009
ASSETS
Cash and cash equivalents	$	58,510		$	38,666		$	48,469
Investment securities		1,430,419			1,408,240			1,271,271
Loans held for sale		78,437			28,492			81,853
Loans, net of allowance for loan losses of $100,500, $100,151 and $106,185 at June 30, 2010, March 31, 2010 and December 31, 2009, respectively		2,858,727			2,878,128			2,847,290
Premises, leasehold improvements and equipment, net		14,616			14,951			15,515
Investment in Federal Home Loan Bank and Federal Reserve Bank stock		36,484			36,484			31,210
Other real estate and repossessed assets, net		28,169			27,355			26,231
Other assets		79,868			81,864			81,663
Total assets	$	4,585,230		$	4,514,180		$	4,403,502
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	570,423		$	587,402		$	659,146
Interest-bearing		2,472,543			2,370,318			2,317,654
Total deposits		3,042,966			2,957,720			2,976,800
Other borrowings		586,960			633,422			337,669
Accrued interest, taxes and other liabilities		55,575			51,830			60,925
Notes payable and other advances		445,000			475,000			627,000
Junior subordinated debentures		86,607			86,607			86,607
Subordinated notes, net		85,367			55,801			55,695
Total liabilities		4,302,475			4,260,380			4,144,696
Stockholders’ equity:
Preferred stock, Series A		—			60,000			60,000
Preferred stock, Series B		99,603			99,221			98,844
Preferred stock, Series C		31,912			—			—
Common stock		193			120			120
Surplus		306,703			227,022			226,398
Accumulated deficit		(172,583	)		(124,251	)		(110,617	)
Accumulated other comprehensive income, net		41,563			16,324			8,697
Treasury stock		(24,636	)		(24,636	)		(24,636	)
Total stockholders’ equity		282,755			253,800			258,806
Total liabilities and stockholders’ equity	$	4,585,230		$	4,514,180		$	4,403,502

TAYLOR CAPITAL GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

	For the Three Months Ended									For the Six Months Ended
	June 30, 2010			Mar. 31, 2010			June 30, 2009			June 30, 2010			June 30, 2009
Interest income:
Interest and fees on loans	$	38,260		$	38,211		$	39,552		$	76,471		$	78,919
Interest and dividends on investment securities:
Taxable		14,209			13,446			14,745			27,655			28,258
Tax-exempt		1,212			1,229			1,416			2,441			2,843
Interest on cash equivalents		1			1			2			2			12
Total interest income		53,682			52,887			55,715			106,569			110,032
Interest expense:
Deposits		11,994			12,442			18,223			24,436			38,282
Other borrowings		2,469			2,285			2,232			4,754			4,408
Notes payable and other advances		1,174			1,624			1,719			2,798			3,238
Junior subordinated debentures		1,446			1,438			1,541			2,884			3,141
Subordinated notes		1,921			1,631			1,620			3,552			3,237
Total interest expense		19,004			19,420			25,335			38,424			52,306
Net interest income		34,678			33,467			30,380			68,145			57,726
Provision for loan losses		43,946			21,130			39,507			65,076			55,070
Net interest income(loss) after provision for loan losses		(9,268	)		12,337			(9,127	)		3,069			2,656
Noninterest income:
Service charges		2,781			2,857			2,768			5,638			5,589
Trust and investment management fees		235			347			475			582			1,009
Mortgage origination revenue		1,892			303			—			2,195			—
Loss on disposition of bulk purchased mortgage loans		(5	)		(2,022	)		—			(2,027	)		—
Gain on investment securities		142			1,433			7,595			1,575			8,259
Other derivative income (loss)		(42	)		209			153			167			1,272
Other noninterest income		1,155			1,247			1,146			2,402			1,351
Total noninterest income		6,158			4,374			12,137			10,532			17,480
Noninterest expense:
Salaries and employee benefits		12,246			11,613			11,004			23,859			21,536
Occupancy of premises, furniture and equipment		2,753			2,554			2,539			5,307			5,156
Nonperforming asset expense		4,055			4,938			224			8,993			978
FDIC assessment		1,970			2,213			4,368			4,183			5,899
Legal fees, net		1,427			819			1,655			2,246			2,795
Early extinguishment of debt		—			—			—			—			527
Other noninterest expense		5,016			5,015			3,917			10,031			7,981
Total noninterest expense		27,467			27,152			23,707			54,619			44,872
Loss before income taxes		(30,577	)		(10,441	)		(20,697	)		(41,018	)		(24,736	)
Income tax expense		306			306			2,558			612			1,337
Net loss		(30,883	)		(10,747	)		(23,255	)		(41,630	)		(26,073	)
Preferred dividends and discounts		(1,693	)		(2,887	)		(2,868	)		(4,580	)		(5,730	)
Implied non-cash preferred dividend		(15,756	)		—			—			(15,756	)		—
Net loss applicable to common stockholders	$	(48,332	)	$	(13,634	)	$	(26,123	)	$	(61,966	)	$	(31,803	)
Basic loss per common share	$	(3.35	)	$	(1.30	)	$	(2.49	)	$	(4.97	)	$	(3.03	)
Diluted loss per common share		(3.35	)		(1.30	)		(2.49	)		(4.97	)		(3.03	)

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:

	June 30, 2010					March 31, 2010					December 31, 2009
Loans:	Balance			Percent of Gross Loans		Balance			Percent of Gross Loans		Balance			Percent of Gross Loans
Commercial and industrial	$	1,335,411		45.1	%	$	1,263,210		42.4	%	$	1,264,369		42.8	%
Commercial real estate secured		1,164,800		39.4			1,180,988		39.7			1,171,777		39.7
Residential construction & land		146,494		5.0			206,727		6.9			221,859		7.5
Commercial construction & land		140,473		4.7			142,845		4.8			142,584		4.8
Total commercial loans		2,787,178		94.2			2,793,770		93.8			2,800,589		94.8
Consumer-oriented loans		172,053		5.8			184,513		6.2			152,892		5.2
Gross loans		2,959,231		100.0	%		2,978,283		100.0	%		2,953,481		100.0	%
Less: Unearned discount		(4	)				(4	)				(6	)
Total loans		2,959,227					2,978,279					2,953,475
Less: Loan loss allowance		(100,500	)				(100,151	)				(106,185	)
Net loans	$	2,858,727				$	2,878,128				$	2,847,290
Loans Held for Sale	$	78,437				$	28,492				$	81,853

The following tables provide details of the Company’s commercial real estate and residential construction and land portfolios:

	June 30, 2010				March 31, 2010				December 31, 2009
	Balance		Percent of Total		Balance		Percent of Total		Balance		Percent of Total
Commercial real estate secured:
Commercial non-owner occupied:
Retail strip centers or malls	$	205,660	17.7	%	$	211,933	17.9	%	$	211,817	18.1	%
Office/mixed use property		132,803	11.4			145,139	12.3			149,951	12.8
Commercial properties		141,854	12.2			144,415	12.2			144,745	12.3
Specialized – other		125,782	10.8			125,726	10.7			121,530	10.4
Other commercial properties		66,565	5.7			66,228	5.6			64,602	5.5
Subtotal commercial non-owner occupied		672,664	57.8			693,441	58.7			692,645	59.1
Commercial owner-occupied		348,808	29.9			341,106	28.9			334,744	28.6
Multi-family properties		143,328	12.3			146,441	12.4			144,388	12.3
Total commercial real estate secured	$	1,164,800	100.0	%	$	1,180,988	100.0	%	$	1,171,777	100.0	%
Residential construction & land:
Residential construction	$	121,151	82.7	%	$	167,728	81.1	%	$	173,432	78.2	%
Land		25,343	17.3			38,999	18.9			48,427	21.8
Total residential construction and land	$	146,494	100.0	%	$	206,727	100.0	%	$	221,859	100.0	%

TAYLOR CAPITAL GROUP, INC.

CREDIT QUALITY (unaudited)

(dollars in thousands)

	At or for the Three Months Ended
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009
Nonperforming Assets:
Loans contractually past due 90 days or more but still accruing interest	$	58		$	58		$	59
Nonaccrual loans:
Commercial and industrial		21,101			25,310			26,687
Commercial real estate secured		58,754			34,863			36,420
Residential construction and land		50,932			57,320			62,795
Commercial construction and land		14,883			14,171			4,245
All other loan types		8,650			9,468			11,256
Total nonaccrual loans		154,320			141,132			141,403
Total nonperforming loans		154,378			141,190			141,462
Other real estate owned and repossessed assets		28,169			27,355			26,231
Total nonperforming assets	$	182,547		$	168,545		$	167,693
Other Credit Quality Information:
Loans contractually past due 30 through 89 days and still accruing	$	35,899		$	13,186		$	13,206
Performing restructured loans		18,826			1,247			1,196
Recorded balance of impaired loans		167,499			132,911			141,697
Allowance for loan losses related to impaired loans		41,622			24,312			33,640
Allowance for Loan Losses Summary:
Allowance at beginning of period	$	100,151		$	106,185		$	107,132
Net (charge-offs) recoveries:
Commercial and commercial real estate		(12,261	)		(8,439	)		(7,983	)
Real estate – construction and land		(29,957	)		(17,605	)		(10,384	)
Total consumer-oriented loans		(1,379	)		(1,120	)		(1,582	)
Total net charge-offs		(43,597	)		(27,164	)		(19,949	)
Provision for loan losses		43,946			21,130			19,002
Allowance at end of period	$	100,500		$	100,151		$	106,185
Key Credit Ratios:
Nonperforming loans to total loans		5.08	%		4.70	%		4.66	%
Nonperforming assets to total loans plus repossessed property		5.95	%		5.55	%		5.48	%
Nonperforming assets to total assets		3.98	%		3.73	%		3.81	%
Annualized net charge-offs to average total loans		5.75	%		3.59	%		2.59	%
Allowance to total loans at end of period		3.31	%		3.33	%		3.50	%
Allowance to nonperforming loans		65.10	%		70.93	%		75.06	%
30 – 89 days past due to total loans		1.18	%		0.44	%		0.44	%

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
	June 30, 2010				March 31, 2010				June 30, 2009
	Average Balance		Percent of Deposits		Average Balance		Percent of Deposits		Average Balance		Percent of Deposits
In-market deposits:
Noninterest-bearing deposits	$	584,246	19.1	%	$	606,604	20.8	%	$	578,020	18.3	%
NOW accounts		269,799	8.8			243,649	8.3			225,502	7.1
Savings deposits		40,760	1.3			41,050	1.4			42,227	1.3
Money market accounts		533,098	17.5			457,534	15.7			408,149	12.9
Customer certificates of deposit		784,120	25.7			779,963	26.7			841,533	26.6
CDARS time deposits		165,631	5.4			124,558	4.3			105,847	3.4
Public time deposits		65,829	2.2			74,376	2.6			75,853	2.4
Total in-market deposits		2,443,483	80.0			2,327,734	79.8			2,277,131	72.0
Out-of-market deposits:
Brokered money market deposits		6,584	0.2			7,033	0.2			21,467	0.7
Out-of-local-market certificates of deposit		107,910	3.5			85,822	2.9			112,653	3.6
Brokered certificates of deposit		496,625	16.3			498,665	17.1			747,172	23.7
Total out-of-market deposits		611,119	20.0			591,520	20.2			881,292	28.0
Total deposits	$	3,054,602	100.0	%	$	2,919,254	100.0	%	$	3,158,423	100.0	%

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:

	June 30, 2010		Mar. 31, 2010		Dec. 31, 2009
In-market deposits:
Noninterest-bearing deposits	$	570,423	$	587,402	$	659,146
NOW accounts		294,605		227,981		307,025
Savings accounts		40,672		40,903		41,479
Money market accounts		576,157		483,209		438,080
Customer certificates of deposit		775,298		784,108		775,663
CDARS time deposits		167,117		163,025		116,256
Public time deposits		47,684		75,170		68,763
Total in-market deposits		2,471,956		2,361,798		2,406,412
Out-of-market deposits:
Brokered money market deposits		6,337		6,739		7,338
Out-of-local-market certificates of deposit		100,173		105,384		79,015
Brokered certificates of deposit		464,500		483,799		484,035
Total out-of-market deposits		571,010		595,922		570,388
Total deposits	$	3,042,966	$	2,957,720	$	2,976,800

TAYLOR CAPITAL GROUP, INC.

RECONCILIATION OF U.S. GAAP FINANCIAL MEASURES (unaudited)

(dollars in thousands)

The following, as of the dates indicated, reconciles the loss before income taxes to pre-tax, pre-provision earnings from core operations.

	For the Three Months Ended									For the Six Months Ended
	June 30, 2010			Mar. 31, 2010			June 30, 2009			June 30, 2010			June 30, 2009
Loss before income taxes	$	(30,577	)	$	(10,441	)	$	(20,697	)	$	(41,018	)	$	(24,736	)
Add back (subtract):
Provision for loan losses		43,946			21,130			39,507			65,076			55,070
Nonperforming asset expense		4,055			4,938			224			8,993			978
Gain on investment securities		(142	)		(1,433	)		(7,595	)		(1,575	)		(8,259	)
Pre-tax, pre-provision earnings from core operations	$	17,282		$	14,194		$	11,439		$	31,476		$	23,053

The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practice within the banking industry. Management uses certain non-GAAP financial measures to evaluate the Company’s financial performance and has provided the non-GAAP measure of pre-tax, pre-provision earnings from core operations. In this non-GAAP financial measure, the provision of loan losses, nonperforming asset expense and certain non-recurring items, such as gains and losses on investment securities, are excluded from the determination of operating results. Management believes that this measure is useful because it provides a more comparable basis for evaluating financial performance from core operations period to period.

Taylor Capital Group, Inc.

Summary of Key Financial Data

(dollars in thousands)

Unaudited

	2010						2009									Year To Date June 30,
	Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2010			2009
Condensed Income Data:
Net interest income	$	34,678		$	33,467		$	32,810		$	32,375		$	30,380		$	68,145		$	57,726
Provision for loan losses		43,946			21,130			19,002			15,539			39,507			65,076			55,070
Total noninterest income		6,158			4,374			12,735			3,376			12,137			10,532			17,480
Total noninterest expense		27,467			27,152			30,219			22,516			23,707			54,619			44,872
Loss before income taxes		(30,577	)		(10,441	)		(3,676	)		(2,304	)		(20,697	)		(41,018	)		(24,736	)
Income tax expense (benefit)		306			306			(647	)		144			2,558			612			1,337
Net loss		(30,883	)		(10,747	)		(3,029	)		(2,448	)		(23,255	)		(41,630	)		(26,073	)
Preferred dividends and discounts		(1,693	)		(2,887	)		(2,880	)		(2,873	)		(2,868	)		(4,580	)		(5,730	)
Implied non-cash preferred dividends		(15,756	)		—			—			—			—			(15,756	)		—
Net loss applicable to common shareholders	$	(48,332	)	$	(13,634	)	$	(5,909	)	$	(5,321	)	$	(26,123	)	$	(61,966	)	$	(31,803	)
Per Share Data:
Basic loss per common share	$	(3.35	)	$	(1.30	)	$	(0.56	)	$	(0.51	)	$	(2.49	)	$	(4.97	)	$	(3.03	)
Diluted loss per common share		(3.35	)		(1.30	)		(0.56	)		(0.51	)		(2.49	)		(4.97	)		(3.03	)
Book value per common share		8.26			8.54			9.02			11.78			10.24			8.26			10.24
Weighted average shares-basic		14,408,469			10,515,668			10,504,027			10,502,844			10,492,789			12,472,822			10,482,212
Weighted average shares-diluted		14,408,469			10,515,668			10,504,027			10,502,844			10,492,789			12,472,822			10,482,212
Shares outstanding-end of period		18,312,772			11,076,197			11,076,707			11,078,011			11,081,429			18,312,772			11,081,429
Performance Ratios (annualized):
Loss on average assets		-2.70	%		-0.96	%		-0.28	%		-0.22	%		-2.04	%		-1.84	%		-1.16	%
Loss on average equity		-45.86	%		-16.25	%		-4.19	%		-3.58	%		-30.20	%		-31.19	%		-17.01	%
Efficiency ratio (1)		67.50	%		74.58	%		82.59	%		63.65	%		67.89	%		70.84	%		67.03	%
Average Balance Sheet Data (2):
Total assets	$	4,573,030		$	4,479,495		$	4,390,123		$	4,543,191		$	4,570,534		$	4,526,520		$	4,502,790
Investments		1,431,291			1,351,711			1,220,768			1,325,722			1,341,763			1,391,721			1,246,703
Cash equivalents		656			294			1,118			2,637			527			476			1,495
Loans		3,034,630			3,022,833			3,079,862			3,180,992			3,187,740			3,028,764			3,212,998
Total interest-earning assets		4,466,577			4,374,838			4,301,748			4,509,351			4,530,030			4,420,961			4,461,196
Interest-bearing deposits		2,470,356			2,312,650			2,340,487			2,526,961			2,580,403			2,391,938			2,606,537
Borrowings		1,205,590			1,245,568			1,058,628			1,074,533			1,027,010			1,225,468			968,612
Total interest-bearing liabilities		3,675,946			3,558,218			3,399,115			3,601,494			3,607,413			3,617,406			3,575,149
Noninterest-bearing deposits		584,246			606,604			640,590			598,760			578,020			595,363			548,766
Total stockholders’ equity		269,356			264,588			289,178			273,504			307,977			266,985			306,552
Tax Equivalent Net Interest Margin:
Net interest income as stated	$	34,678		$	33,467		$	32,810		$	32,375		$	30,380		$	68,145		$	57,726
Add: Tax equivalent adjust.-investment (3)		653			662			681			732			763			1,314			1,531
Tax equivalent adjust.-loans (3)		25			25			29			29			29			50			57
Tax equivalent net interest income	$	35,356		$	34,154		$	33,520		$	33,136		$	31,172		$	69,509		$	59,314
Net interest margin without tax adjust.		3.11	%		3.09	%		3.03	%		2.86	%		2.69	%		3.10	%		2.60	%
Net interest margin - tax equivalent (3)		3.17	%		3.15	%		3.10	%		2.92	%		2.76	%		3.16	%		2.67	%
Yield on earning assets without tax adjust.		4.82	%		4.88	%		4.99	%		4.94	%		4.93	%		4.85	%		4.96	%
Yield on earning assets - tax equivalent (3)		4.88	%		4.95	%		5.05	%		5.01	%		5.00	%		4.91	%		5.03	%
Yield on interest-bearing liabilities		2.07	%		2.21	%		2.47	%		2.61	%		2.82	%		2.14	%		2.95	%
Net interest spread - without tax adjust.		2.74	%		2.67	%		2.52	%		2.34	%		2.11	%		2.71	%		2.01	%
Net interest spread - tax equivalent (3)		2.81	%		2.74	%		2.58	%		2.40	%		2.18	%		2.77	%		2.08	%
	June 30, 2010			Mar. 31, 2010			Dec. 31, 2009			Sept. 30, 2009			June 30, 2009
Condensed Balance Sheet Data:
Investment securities	$	1,430,419		$	1,408,240		$	1,271,271		$	1,306,098		$	1,306,174
Loans		3,037,664			3,006,771			3,035,328			3,114,254			3,177,739
Allowance for loan losses		100,500			100,151			106,185			107,132			132,927
Total assets		4,585,230			4,514,180			4,403,502			4,485,081			4,548,325
Total deposits		3,042,966			2,957,720			2,976,800			3,052,729			3,204,574
Total borrowings		1,203,934			1,250,830			1,106,971			1,086,892			974,344
Total stockholders’ equity		282,755			253,800			258,806			289,020			271,635
Asset Quality Ratios:
Nonperforming loans	$	154,378		$	141,190		$	141,462		$	176,020		$	189,816
Nonperforming assets		182,547			168,545			167,693			196,333			212,886
Allowance for loan losses to total loans		3.31	%		3.33	%		3.50	%		3.44	%		4.18	%
Allowance for loan losses to nonperforming loans		65.10	%		70.93	%		75.06	%		60.86	%		70.03	%
Nonperforming assets to total loans plus repossessed property		5.95	%		5.55	%		5.48	%		6.26	%		6.65	%
Capital Ratios (Taylor Capital Group, Inc.):
Total Capital (to Risk Weighted Assets)		13.20	%		12.34	%		12.72	%		12.75	%		12.51	%
Tier I Capital (to Risk Weighted Assets).		9.34	%		9.29	%		9.79	%		9.86	%		9.67	%
Leverage (to average assets)		6.98	%		7.07	%		7.60	%		7.47	%		7.52	%

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) Adjustment reflects tax-exempt interest income on an equivalent before-tax basis assuming a tax rate of 35.0%.