August 19, 2002

Reporters may contact:
Tom Adams at State Bank (979) 968-7261
tom.adams@statebanktx.com

LA GRANGE – Texas United Bancshares, Inc. announced today that it successfully completed the acquisition of The Bryan-College Station Financial Holding Company in Bryan, Texas on July 31, 2002. In connection with the acquisition, on August 1, 2002, Texas United's common stock was listed on the Nasdaq National Market under the symbol "TXUI."

"Completion of this transaction brings the number of full service banking centers operating under our wholly owned subsidiary, State Bank, to 17. This gives us a solid presence in the dynamic Bryan-College Station market that complements our banking operations in the central and south central Texas area," said Don Stricklin, President and Chief Executive Officer.

Following the merger announcement, Robert A. (Bobby) Williamson was appointed Senior Vice President/Regional President of State Bank with responsibility for the Bryan-College Station region of Central Texas.

A native of the area, Williamson graduated from Texas A&M University in 1992 with a Bachelor of Business Administration degree. He has held positions with increasing responsibilities at regional banking institutions since he began his career in 1981, most recently serving as President at First Bank of Snook. He also has graduated from a Bank Operations School at East Texas State University and a National Commercial Lending School sponsored by the American Bankers Association.

"We are very pleased to have Bobby Williamson join our management team," noted Mr. Stricklin. "Bobby has a thorough understanding of community banking and broad experience in the Central Texas region where he will be focusing his expertise."

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. In addition to its main office in La Grange, State Bank operates 16 full-service banking centers located in the Texas counties of Fayette, Lee, Waller, Atascosa, Comal, Harris, Williamson, Travis, Colorado, Brazos and Gonzales.

Except for historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including, but not limited to, the following: general business and economic conditions in the markets Texas United serves may be less favorable than expected which could decrease the demand for loan, deposit and other financial services and increase loan delinquencies and defaults; changes in the interest rate environment which could reduce Texas United's net interest margin; acquisition integration may be more difficult than anticipated; legislative or regulatory developments including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial securities industry; competitive factors may increase, including product and pricing pressures among financial services organizations; and changes in accounting principles, policies or guidelines. All written or oral forward-looking statements are expressly qualified in their entirety by these cautionary statements. Please also read the additional risks and factors described from time to time in Texas United's reports and registration statements filed with the Securities and Exchange Commission.