1169238--3/16/2006--TEXAS_UNITED_BANCSHARES

related topics

{condition, economic, financial}

{acquisition, growth, future}

{loan, real, estate}

{operation, international, foreign}

{regulation, government, change}

{provision, law, control}

{competitive, industry, competition}

{loss, insurance, financial}

{system, service, information}

{stock, price, share}

Risks Associated With Texas United s Business If Texas United is not able to continue its historical levels of growth, it may not be able to maintain its historical earnings trends. If Texas United is unable to manage its growth effectively, its operations could be negatively affected. If Texas United is unable to identify and acquire other financial institutions and successfully integrate its acquired businesses, its business and earnings may be negatively affected. Texas United s business is subject to interest rate risk and fluctuations in interest rates may adversely affect its earnings and capital levels. Texas United s profitability depends significantly on local economic conditions. A large percentage of Texas United s loans are secured by real estate, and an adverse change in the real estate market may result in losses and adversely affect Texas United s profitability. Texas United could be subject to environmental risks and associated costs on its foreclosed real estate assets. Texas United s allowance for loan losses may not be sufficient to cover actual loan losses, which could adversely affect its earnings. Texas United s small to medium-sized business target market may have fewer financial resources to weather a downturn in the economy. An interruption in or breach in security of Texas United s information systems may result in a loss of customer business. Risks Associated With Texas United s Industry Texas United faces strong competition from other financial institutions and financial service companies, which could adversely affect its operations and financial condition. Texas United operates in a highly regulated environment and, as a result, is subject to extensive regulation and supervision that could adversely affect its financial performance, and Texas United may be adversely affected by changes in federal and local laws and regulations. Risks Associated With Texas United Common Stock Texas United s corporate organizational documents and the provisions of Texas law to which it is subject may delay or prevent a change in control of Texas United that you may favor. The trading volume in Texas United common stock has been low. Risks Related to Texas United s Pending Acquisition of Northwest Bancshares, Inc. There may be undiscovered risks or losses associated with the Northwest acquisition. Texas United may not be able to successfully consummate the acquisition of Northwest and, even if the acquisition is consummated, Texas United may not be able to integrate Northwest s operations with its business efficiently.

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1169238--3/16/2006--TEXAS_UNITED_BANCSHARES_INC