February 11, 2003

For Information Contact:
Erica Vasek at State Bank (979) 968-7294
erica.vasek@statebanktx.com

AUSTIN - State Bank today announced the establishment of a Small Business Administration Lending Division and named Michael D. Litton to head the new unit, according to President Don Stricklin, President and Chief Executive Officer.

A native of Austin, Litton earned a Bachelor of Business Administration Degree from The University of Texas at Austin in 1981. Prior to joining State Bank, he served as Vice President of SBA Lending at Bank United/Washington Mutual Bank from 1998 to 2003.

With responsibility for establishing State Bank's Small Business Administration Lending Division, Litton will design, implement and manage a loan program that includes all areas of loan production, closing and servicing.

"Michael Litton knows small business administration and we're delighted to have him join our team," Stricklin said. "State Bank is always looking for new ways to serve our customers. This new service will give our small commercial customers yet another option when they require credit." Litton will office out of the Austin banking center located at 12730 Research Boulevard.

State Bank is a wholly owned subsidiary of Texas United Bancshares, Inc., a registered financial holding company that is listed on the Nasdaq National Market under the symbol "TXUI." State Bank offers a complete range of banking services in the greater central and south central Texas area. Headquartered in La Grange, State Bank operates 18 full-service banking centers located in the Texas counties of Fayette, Lee, Waller, Atascosa, Comal, Harris, Williamson, Travis, Colorado, Brazos and Gonzales.