June 3, 2003

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

TOMBALL - State Bank has appointed Todd L. Gaudin as Vice President of Commercial Lending, President and Chief Executive Officer, Don Stricklin announced today.

Born in Liberty, Texas, Gaudin was raised in Teague, Texas. He holds a BBA in Finance from Sam Houston State University. In addition, he has attended the School of Banking of the South at Louisiana State University and the National Commercial Lending School at Oklahoma University. Gaudin is a Life Member of the Houston Livestock Show and Rodeo and Past Chairman of the Houston General Go Texan Committee. He is also a Director of the Cypress Fairbanks Rodeo Association. He is the Scoutmaster of Boy Scout Troop 483 and received the Rising Star District Award of Merit in 2002. As a member of the Houston Cy-Fair Lions Club, he was made a Melvin Jones Fellow in 2002, received the Distinguished Achievement Award from the Past District Governors in 1999 and was Lion of the Year in 1995-96. He is a member and usher at Cypress United Methodist Church.

Gaudin has a strong background in the financial industry and community banking. He most recently worked for Prosperity Bank (formerly Paradigm Bank) and SouthTrust Bank (formerly Langham Creek National Bank), holding a variety of positions of increasing responsibility. Gaudin began his career with Capital National Bank in Houston before returning to his hometown as president of Donie State Bank and later the First National Bank of Teague. He returned to Houston to join NBC Bank, which later became Bank of America. Gaudin also has worked in the mortgage industry with Norwest Mortgage and as a broker.

"Todd will be responsible for commercial lending with an emphasis on real estate and commercial loans for small to mid-size companies, businesses, developers and individuals," Stricklin said.

Gaudin's office is located at State Bank's Tomball Banking Center, 620 W. Main, Tomball, Texas 77377. He can be reached at 281 890-0404 or at todd.gaudin@statebanktx.com.

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.