Austin, TX, May 4, 2009 - Austin Bancshares, Inc. ("Austin Bancshares") and La Grange Bancshares, Inc. ("La Grange"), a bank holding company, jointly announce the signing of an agreement that provides for Austin Bancshares to acquire La Grange and its wholly owned banking subsidiary, Colorado Valley Bank, SSB ("Colorado Valley"), a Texas state savings bank, headquartered in La Grange, Texas.  Colorado Valley is a community financial institution with approximately $30 million in assets and locations in La Grange and Weimer, Texas.

Robert Gandy, IV, President of Austin Bancshares, said, "We are very pleased to have the opportunity to enter into this transaction with Colorado Valley and look forward to building on their operations in Fayette and Colorado Counties.  Along with this, we are excited that management has agreed to stay at Colorado Valley going forward and will continue to serve the local community after this transition.  In addition, we have expansion activity planned for the Travis County market.  Colorado Valley has a great team of strong, experienced banking officers which will enable us to continue to grow and expand our vision throughout central Texas."

Joseph A. Mihatsch, Jr., Chairman and CEO of La Grange said, "We believe the merger with Austin Bancshares presents a great opportunity for our customers, shareholders and employees.  Our banking groups have common goals and business philosophies and we are confident this will lead to a seamless transition."

Austin Bancshares will continue to offer through Colorado Valley consumer and business loan and deposit products as well as expanded financial services, including internet banking, mortgage banking, and commercial lending.

The transaction, which is subject to regulatory and shareholder approvals, is expected to be completed during the third quarter of 2009.

Harris Law Firm PC served as legal adviser to La Grange, with T. Alan Harris acting as lead attorney, while The Carson Medlin Company Investment Bankers served as financial adviser.

Bracewell & Giuliani LLP served as legal adviser to Austin Bancshares, with Justin M. Long and William T. Luedke IV acting as lead attorneys.