November 15, 2001

Reporters may contact:
Don Stricklin, 979-968-8451

For the past several years, State Bank and Central Texas Bank have been "sister" banks, owned by the same local shareholders under their holding company of Texas United Bancshares. The two banks operate fourteen Banking Centers with local community bankers in the markets they serve. Effective December  31, 2001, State Bank and Central Texas Bank will consolidate their operations under one bank - State Bank.

Don Stricklin, President/CEO of State Bank, will serve in that capacity in the combined company and the holding company. Ervan Zouzalik, President/CEO of Central Texas Bank will be Chairman of the Board of State Bank and Texas United Bancshares. All current employees will be provided job opportunities in the combined company. In fact, additional hiring is taking place due to the rapid growth of the organization.

"We are facing rapidly changing technology in banking throughout our Country, and both of our banks have been searching for ways in which to enhance the products and services offered our customers, while maintaining our hometown community bank philosophy," said Stricklin. He added, "I am excited about the consolidation of State Bank and Central Texas Bank because it will provide the necessary tools for us to compete effectively with larger competitors, while vastly improving financial services to all customers."

The two banks will be consolidated under the name of State Bank. The actual consolidation of bookkeeping functions will not take place until the data processing conversion on February 15, 2002. Therefore, customers will see little change in day-to-day operations prior to this date. Even after the consolidation, there will be little change, except for the name. Customers will still have the same account numbers and may use the same checks.

Zouzalik pointed out that, "State Bank was founded in 1868, and Central Texas Bank was founded in 1909 - each providing many years of outstanding financial service in their respective communities. Combined, we will continue to carry on our rich heritage, and earn our customer's business by providing state-of-the-art banking services in the markets we serve".

Following the consolidation, State Bank will have total assets exceeding $425,000,000 and will operate fourteen Banking Centers in Austin, Cedar Park, Dime Box, Flatonia, Gonzales, Hempstead, La Grange, Lexington, New Braunfels, Pleasanton, Schulenburg, Tomball, Waller, and Weimar.