Austin Bank acquires Kilgore's City National Bank

Jeff Austin, III, Austin Bank Vice Chairman of the Board is pleased to announce that Austin Bank has entered into an agreement to acquire City National Bank, Kilgore, Texas. Subject to regulatory approval, City National, with assets of approximately $170 million, will be merged with Austin Bank and operate as offices of Austin Bank tentatively on Tuesday, February 19, 2008.

Vice Chairman Austin stated, "We welcome the opportunity to serve the customers of City National Bank. They will be able to continue banking in Kilgore, Gladewater and Longview while having access to our other locations in East Texas. We are committed to providing the exceptional service to which they have become accustomed as customers of City National Bank, and look forward to offering them not only advancements in technology and a full line of personal and business products, services, but access to an additional 23 more convenient locations."

Roland Velvin, City National Bank President/ CEO, echoed Austin's comments. "We have confidence that Austin Bank is the right choice for our bank and its customers. We look forward to becoming part of the Austin Bank organization because of its commitment to quality and highly personalized service."

Austin Bank, an East Texas based community bank with headquarters in Jacksonville, Texas, has in excess of $800 million in assets with 23 offices in nine counties throughout East Texas. More information about Austin Bank can be found on the bank's website at www.austinbank.com.