GONZALES – Texas United Bancshares, Inc. (Nasdaq: TXUI), an independent bank holding company, announced that its Board of Directors has declared a three-for-two stock split to be effected in the form of stock dividend on its common shares. Shareholders of record on October 1, 2003, will be entitled to one additional share of common stock for every two shares of the Company's common stock held on that date. Cash paid in lieu of fractional shares will be based on the closing stock price on the record date, as adjusted for the split.

The payment date for the stock dividend will be October 15, 2003. On or about that date, certificates for the new shares and checks for cash paid in lieu of fractional shares will be mailed to shareholders by the Company's transfer agent, U.S. Stock Transfer Corporation.

The Company had approximately 2,663,000 shares of its common stock outstanding as of August 31, 2003. As a result of the stock dividend, the Company will have approximately 3,995,000 shares of common stock outstanding.

Texas United Bancshares, Inc. is a registered financial holding company listed on the Nasdaq National Market under the symbol "TXUI." Its wholly owned subsidiary, State Bank, offers a complete range of banking services in the greater central and south central Texas area. 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.

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.