Texas United Introduces a Bank Factoring Program for Independent Texas Banks

Texas United Introduces a Bank Factoring Program for Independent
Texas Banks 


LA GRANGE, Texas, Jan. 14  /PRNewswire-FirstCall/ -- Texas United Bancshares,
Inc. (NASDAQ:TXUI) through its banking subsidiary, State Bank, is pleased to
announce the formation of a participation program to provide independent Texas
banks with the opportunity to expand their commercial loan product lines.  This
participation program allows independent Texas banks to provide working capital
credit facilities on a secured basis to their small and mid-market commercial
customers that might not otherwise qualify for commercial loans.

Since its inception in 1996, the Working Capital Finance Group (WCFG) of State
Bank has provided over $600 million in secured working capital advances to
companies located throughout the state of Texas.  WCFG is headquartered in
Austin, and has been managed by a seasoned professional, Cole Harmonson, Senior
Vice President of State Bank, since its inception.  The department is
fully-staffed and available to work with banks that do not yet have the in-
house expertise to provide this specialized type of financing.  There are
opportunities for each bank to determine its level of involvement on a
transaction-by-transaction basis.

Don Stricklin, President and CEO of Texas United Bancshares, commented, "Our
Working Capital Finance Group is seasoned, successful and committed to
providing the same high quality of service for customers of independent Texas
banks that we currently provide to our own customers.  We pride ourselves on
our flexible approach that will meet the various needs of our banking
colleagues and their smaller commercial borrowers.  Whatever the participation
level chosen by each bank, State Bank's service and performance will surpass
what can be provided by a traditional factor."

Added Mr. Harmonson, "Our program supports and respects each bank's existing
relationship with its clients.  Furthermore, WCFG is part of a federally
insured and regulated organization.  As a bank, our lower cost-of- funds
provides a less expensive option than that of non-banking organizations. We
believe that independent Texas banks will come to understand that this is a
win-win proposition for them."

Texas United Bancshares, Inc. is a registered financial holding company listed
on the Nasdaq National Market under the symbol "TXUI".  Its wholly- owned
subsidiaries, State Bank and GNB Financial, n.a., offer a complete range of
banking services through 27 full-service banking centers.  In addition, State
Bank has 18 mortgage loan production offices located in Houston, San Antonio
and Austin through the Bank and its wholly-owned subsidiary, Community Home
Loan.

Except for historical information, certain of the matters discussed in this
news release may constitute 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.  We disclaim any
obligation to update or revise any forward-looking statements contained in this
release. 

DATASOURCE: Texas United Bancshares, Inc.



CONTACT:  Cole Harmonson of Texas United Bancshares, Inc.,

[phone]

Copyright