THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Texas United Bancshares, Inc. (TXUI)

4/24/2006 Proxy Information

Many of the directors, executive officers of the Company and the Banks and principal shareholders of the Company (i.e., those who own 10% or more of the Common Stock) and their associates, which include corporations, partnerships and other organizations in which they are officers or partners or in which they and their immediate families have at least a 5% interest, are customers of the Banks. However, the Boards of Directors of the Company and the Banks have adopted a policy prohibiting the Banks from making loans to the executive officers and associates of the Company and the Banks. During 2005, State Bank, GNB Financial and Gateway (following its acquisition in December 2005) made loans in the ordinary course of business to the directors of the Company, the Banks and principal shareholders of the Company and their associates, all of which were on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons unaffiliated with the Company and did not involve more than the normal risk of collectibility or present other unfavorable features. Loans to directors of the Company, the Banks and principal shareholders of the Company are subject to limitations contained in the Federal Reserve Act, the principal effect of which is to require that extensions of credit by the Banks to directors of the Company, the Banks and principal shareholders of the Company satisfy the foregoing standards. As of December 31, 2005, all of such loans aggregated $5.4 million, which was approximately 5.1% of the Company’s Tier 1 capital at such date. The Company expects the Banks to have such transactions or transactions on a similar basis with the directors of the Company, the Banks and principal shareholders of the Company and their associates in the future.