Texas Regional Bancshares, Inc. Reports First Quarter Earnings

Apr 16, 2001, 01:00 ET from Texas Regional Bancshares, Inc.

    MCALLEN, Texas, April 16 /PRNewswire/ --
 Texas Regional Bancshares, Inc. (Nasdaq:   TRBS) ("Texas Regional") today
 reported net income for first quarter 2001 of $9.3 million, or $0.57 per
 diluted common share, compared with $8.4 million, or $0.52 per diluted common
 share, for first quarter 2000.  Return on assets and return on equity for
 first quarter 2001 averaged 1.55 percent and 16.10 percent, respectively,
 compared to 1.56 percent and 17.73 percent, respectively, for first quarter
 2000.  Cash earnings of $9.8 million, which exclude the after tax impact of
 amortization of goodwill, increased to $0.61 per diluted common share for
 first quarter 2001 compared to $0.55 per diluted common share for first
 quarter 2000.
     "We are pleased that the operating results for first quarter 2001 reflect
 strong growth in loans, deposits and earnings," said Glen E. Roney, Chairman
 of the Board.  "The Borderplex economy continues to grow and diversify
 providing a favorable outlook for continued growth in our commercial banking
 business."
 
                              Financial Highlights
     Net interest income, on a taxable equivalent basis, rose 5.4 percent to
 $24.9 million for first quarter 2001 compared to $23.6 million for the same
 quarter last year.  An increase of 14.6 percent in average interest-earning
 assets to $2.2 billion contributed to the growth in net interest income.  The
 increase was partially offset by an increase in average interest-bearing
 liabilities of 13.3 percent to $1.9 billion.  The net interest margin was
 4.52 percent for the three months ended March 31, 2001, compared with
 4.87 percent for the same period in 2000.  This decline resulted from a sixty-
 three basis point increase in the cost of average interest-bearing liabilities
 to 5.18 percent, up from 4.55 percent for the same period last year.  The
 yield on average interest-earning assets also increased by fourteen basis
 points to 8.90 percent for the three months ended March 31, 2001.
     Provision for loan losses decreased to $1.7 million for first quarter 2001
 compared to $2.2 million for the same period in 2000.  The decrease in the
 provision is primarily attributable to a decrease in the amount of loan growth
 during first quarter 2001 compared to the same period in 2000.  Net charge-
 offs of $1.4 million for the three months ended March 31, 2001 were comparable
 to $1.2 million recorded for the corresponding prior year period.
     Noninterest income for first quarter 2001 increased 21.0 percent to
 $6.3 million from $5.2 million for first quarter 2000.  Total service charges
 increased $829,000, or 22.4% to $4.5 million for first quarter 2001 due to
 increased account transaction fees generated by deposit growth and pricing
 adjustments.  Trust service fees of $624,000 for first quarter 2001 increased
 $149,000 or 31.4 percent resulting from an increase in the fair market value
 of assets managed by 7.3 percent to $386.8 million at March 31, 2001, as well
 as an increase in fees effective April 1, 2000.  During first quarter 2001,
 data processing fees increased $165,000 or 28.3 percent to $749,000 due to the
 acquisition of one client during second quarter 2000.  The number of data
 processing clients totaled 8 at March 31, 2001.
     Noninterest expense increased 8.7 percent to $14.4 million for first
 quarter 2001 compared to $13.3 million for the same 2000 period.  Salaries and
 employee benefits, the largest category of noninterest expense, of
 $6.8 million for the three months ended March 31, 2001 increased $175,000 or
 2.6 percent compared to the same period last year of $6.7 million.  The
 increase during first quarter 2001 compared to the same period in 2000
 reflects increases in higher levels of staff and medical insurance premiums.
 The number of full-time equivalent employees of 925 at March 31, 2001
 increased 4.8 percent from 883 at March 31, 2000.  Other noninterest expense
 of $3.8 million for first quarter 2001 increased by $731,000 or 24.0% compared
 to $3.0 million for the same 2000 period.  This increase resulted primarily
 from higher legal fees of $239,000 related to nonperforming loans and from a
 franchise tax recovery of $310,000 collected during first quarter 2000.  The
 efficiency ratio was 42.4 percent during first quarter 2001, compared to
 42.0 percent a year ago.
     Assets totaled $2.5 billion at March 31, 2001, up from $2.3 billion at
 March 31, 2000, reflecting a 10.1 percent increase.  Loans at period end of
 $1.6 billion increased $181.3 million or 12.6 percent compared to $1.4 billion
 at March 31, 2000.  Deposits totaled $2.2 billion at March 31, 2001, up from
 $2.0 billion a year ago, reflecting a 6.4 percent increase.  Excluding
 $38.7 million received from foreign customers on a short-term basis on
 March 31, 2000, deposits increased 8.5 percent from the prior year.
 Shareholders' equity at March 31, 2001 totaled $239.1 million.  The total
 risk-based, tier 1 risk-based and leverage capital ratios of 12.48 percent,
 11.34 percent and 8.24 percent, respectively, at period end substantially
 exceeded regulatory requirements for a well-capitalized banking company.
 
                                 Asset Quality
     At March 31, 2001, total loans of $1.6 billion included $13.2 million, or
 0.81 percent, classified as nonperforming.  The allowance for loan losses to
 nonperforming loans at March 31, 2001 decreased to 149.9 percent, down from
 196.2 percent at March 31, 2000.  Restructured loans of $2.8 million were
 classified as nonaccruing during first quarter 2001.  Net charge-offs for
 first quarter 2001 averaged 0.34 percent of average loans.  The allowance for
 loan losses of $19.8 million represented 1.22 percent of loans at period end.
 Total nonperforming assets at March 31, 2001 of $18.3 million represented
 0.73 percent of total assets, up from .71 percent at December 31, 2000.
 
                               Other Information
     Texas Regional paid a quarterly cash dividend of $0.150 per share on
 April 12, 2001 to shareholders of record on April 2, 2001.
     Texas Regional is a registered bank holding company whose wholly owned
 subsidiary, Texas State Bank, conducts a commercial banking business in the
 Rio Grande Valley of Texas, operating twenty six (26) full service banking
 locations.  Texas Regional stock trades on The Nasdaq Stock Market(SM) under
 the symbol TRBS.
     Additional financial, statistical and business-related information, as
 well as business trends, is included in a Financial Supplement.  This release,
 the Financial Supplement and other information are available on Texas
 Regional's website at www.TRBSinc.com.  The Financial Supplement and other
 information available on Texas Regional's website can also be obtained by
 calling R.T. Pigott, Jr., Chief Financial Officer, at (956) 631-5400.
     This document may contain forward-looking information (including
 information related to plans, projections or future performance of Texas
 Regional and its subsidiaries), the occurrence of which involve certain risks,
 uncertainties and other factors which could materially affect future results.
 For further information please see Texas Regional's reports filed with the
 Securities and Exchange Commission pursuant to the Securities Exchange Act of
 1934, which are available at the SEC's website (www.sec.gov).
     CONTACT: Glen E. Roney, Chief Executive Officer, or R. T. Pigott, Jr.,
 Chief Financial Officer, (956) 631-5400, both of Texas Regional.
 
      Texas Regional Bancshares, Inc. and Subsidiaries
      Financial Highlights (Unaudited)   At / For Three Months Ended
 
     (Dollars in Thousands,      Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31
     Except Per Share Data)       2001     2000     2000     2000     2000
 
     Condensed Income Statements
      Interest Income           $48,465  $48,540  $46,336  $44,691  $41,970
      Interest Expense           24,073   24,374   22,509   20,818   18,812
       Net Interest Income       24,392   24,166   23,827   23,873   23,158
       Net Interest Income (A)   24,853   24,605   24,283   24,273   23,588
     Provision for Loan Losses    1,738    1,875    2,558    2,325    2,169
      Net Interest Income After
       Provision for Loan Losses 22,654   22,291   21,269   21,548   20,989
     Noninterest Income
      Service Charges on
       Deposit Accounts           3,455    3,198    3,008    2,903    2,754
     Other Service Charges        1,075      710      618      658      947
     Trust Service Fees             624      645      592      589      475
     Net Realized Gains on
       Sales of AFS Securities       11       12      ---      ---      ---
     Data Processing Service Fees   749      746      659      687      584
     Other Operating Income         390      390      385      566      448
       Total Noninterest Income   6,304    5,701    5,262    5,403    5,208
     Noninterest Expense
      Salaries and Employee
       Benefits                   6,834    7,237    6,591    6,149    6,659
      Net Occupancy Expense       1,067      948    1,017    1,045      956
      Equipment Expense           1,542    1,532    1,618    1,550    1,427
      Other Real Estate (Income)
       Expense, Net                  88      177       (9)     451       31
      Amortization of Goodwill
       and Identifiable
       Intangibles                1,107    1,108    1,108    1,108    1,145
      Other Noninterest Expense,
       Net                        3,776    2,386    3,007    3,258    3,045
       Total Noninterest Expense 14,414   13,388   13,332   13,561   13,263
      Income Before Income Taxes 14,544   14,604   13,199   13,390   12,934
      Income Tax Expense          5,246    5,112    4,281    4,869    4,563
      Net Income                  9,298    9,492    8,918    8,521    8,371
      Cash Earnings (B)           9,847   10,042    9,467    9,071    8,920
     Common Share Data (C)
      Net Income-Basic            $0.58    $0.59    $0.55    $0.53    $0.52
      Net Income-Diluted           0.57     0.59     0.55     0.53     0.52
      Cash Earnings (B) -Basic     0.61     0.62     0.59     0.57     0.56
      Cash Earnings (B) -Diluted   0.61     0.62     0.59     0.56     0.55
      Book Value at Month End     14.86    14.15    13.15    12.40    12.04
      Cash Dividends Declared     0.150    0.150    0.127    0.127    0.127
     Weighted Average Shares (C)
      Outstanding (in Thousands)
      Basic                      16,091   16,088   16,081   16,054   15,977
      Diluted                    16,199   16,166   16,155   16,148   16,118
     Shares Outstanding at
      Period End (C)             16,091   16,091   16,085   16,080   15,978
     Capital Ratios
      Total Risk-Based Capital
       Ratio                      12.48%   12.35%   12.26%   12.00%   11.78%
      Tier 1 Risk-Based Capital
       Ratio                      11.34    11.20    11.11    10.86    10.63
      Leverage Capital Ratio       8.24     8.14     8.05     7.78     7.70
      Equity to Assets Ratio       9.59     9.39     9.13     8.81     8.50
 
 
      Texas Regional Bancshares, Inc. and Subsidiaries
      Financial Highlights (Unaudited)
      (Dollars in Thousands,
      Except Per Share Data)
                                      At / For Three Months Ended
                           Mar 31,    Dec 31,   Sep 30,    Jun 30,    Mar 31
                            2001       2000      2000       2000       2000
 
     Balances
      Total Assets      $2,493,741 $2,426,097 $2,317,005 $2,262,508 $2,265,314
      Loans              1,624,182  1,587,827  1,519,963  1,494,431  1,442,912
      Securities           638,182    621,945    597,762    556,291    546,520
      Interest-Earning
       Assets            2,296,104  2,216,877  2,121,535  2,054,721  2,053,397
      Deposits           2,170,877  2,109,748  2,064,161  1,977,313  2,039,960
      Shareholders'
       Equity              239,130    227,711    211,451    199,377    192,453
     Average Balances
      Total Assets      $2,435,309 $2,353,909 $2,271,056 $2,246,747 $2,155,845
      Loans              1,610,920  1,551,655  1,503,849  1,471,410  1,402,606
      Securities           613,130    594,090    557,575    551,387    537,067
      Interest-Earning
       Assets            2,230,343  2,153,326  2,068,565  2,040,250  1,946,910
      Deposits           2,124,665  2,077,296  1,992,043  1,995,201  1,930,789
      Shareholders'
       Equity              234,182    218,399    205,489    196,043    189,853
     Selected Financial Data
      Net Income
       Return on Average
        Assets                1.55%      1.60%      1.56%      1.53%      1.56%
       Return on Average
        Equity               16.10      17.29      17.27      17.48      17.73
       Efficiency Ratio (A)  46.00      43.61      45.15      44.18      45.95
      Cash Earnings (B)
       Return on Average
        Assets                1.64       1.70       1.66       1.62       1.66
       Return on Average
        Equity               17.05      18.29      18.33      18.61      18.90
       Efficiency Ratio      44.15      41.71      43.21      42.24      43.96
      Net Interest Income to
       Average Earning
       Assets (A)             4.52       4.55       4.67       4.78       4.87
      Allowance for Loan
       Losses              $19,837    $19,458    $18,602    $18,239    $17,666
      Net Charge-Offs        1,359      1,019      2,195      1,752      1,214
     Nonperforming Assets,
      Past Due Loans &
      Restructured Loans
       Nonaccrual Loans    $13,232     $8,999     $8,951    $13,426     $9,006
       Restructured Loans      ---      3,482      5,190      9,253        ---
       Foreclosed and Other
        Assets               5,039      4,733      4,958      4,806      5,991
        Total Nonperforming
         Assets             18,271     17,214     19,099     27,485     14,997
       Accruing Loans 90
        Days or More Past
        Due                  3,693      4,022      2,135      4,013      3,224
 
     (A) Tax-equivalent basis assuming a 35% tax rate.
     (B) Net income before amortization of goodwill, net of taxes.
     (C) Restated to retroactively give effect for the 10% stock dividend
         declared by the Corporation during fourth quarter 2000 and distributed
         during first quarter 2001.
 
 

SOURCE Texas Regional Bancshares, Inc.
    MCALLEN, Texas, April 16 /PRNewswire/ --
 Texas Regional Bancshares, Inc. (Nasdaq:   TRBS) ("Texas Regional") today
 reported net income for first quarter 2001 of $9.3 million, or $0.57 per
 diluted common share, compared with $8.4 million, or $0.52 per diluted common
 share, for first quarter 2000.  Return on assets and return on equity for
 first quarter 2001 averaged 1.55 percent and 16.10 percent, respectively,
 compared to 1.56 percent and 17.73 percent, respectively, for first quarter
 2000.  Cash earnings of $9.8 million, which exclude the after tax impact of
 amortization of goodwill, increased to $0.61 per diluted common share for
 first quarter 2001 compared to $0.55 per diluted common share for first
 quarter 2000.
     "We are pleased that the operating results for first quarter 2001 reflect
 strong growth in loans, deposits and earnings," said Glen E. Roney, Chairman
 of the Board.  "The Borderplex economy continues to grow and diversify
 providing a favorable outlook for continued growth in our commercial banking
 business."
 
                              Financial Highlights
     Net interest income, on a taxable equivalent basis, rose 5.4 percent to
 $24.9 million for first quarter 2001 compared to $23.6 million for the same
 quarter last year.  An increase of 14.6 percent in average interest-earning
 assets to $2.2 billion contributed to the growth in net interest income.  The
 increase was partially offset by an increase in average interest-bearing
 liabilities of 13.3 percent to $1.9 billion.  The net interest margin was
 4.52 percent for the three months ended March 31, 2001, compared with
 4.87 percent for the same period in 2000.  This decline resulted from a sixty-
 three basis point increase in the cost of average interest-bearing liabilities
 to 5.18 percent, up from 4.55 percent for the same period last year.  The
 yield on average interest-earning assets also increased by fourteen basis
 points to 8.90 percent for the three months ended March 31, 2001.
     Provision for loan losses decreased to $1.7 million for first quarter 2001
 compared to $2.2 million for the same period in 2000.  The decrease in the
 provision is primarily attributable to a decrease in the amount of loan growth
 during first quarter 2001 compared to the same period in 2000.  Net charge-
 offs of $1.4 million for the three months ended March 31, 2001 were comparable
 to $1.2 million recorded for the corresponding prior year period.
     Noninterest income for first quarter 2001 increased 21.0 percent to
 $6.3 million from $5.2 million for first quarter 2000.  Total service charges
 increased $829,000, or 22.4% to $4.5 million for first quarter 2001 due to
 increased account transaction fees generated by deposit growth and pricing
 adjustments.  Trust service fees of $624,000 for first quarter 2001 increased
 $149,000 or 31.4 percent resulting from an increase in the fair market value
 of assets managed by 7.3 percent to $386.8 million at March 31, 2001, as well
 as an increase in fees effective April 1, 2000.  During first quarter 2001,
 data processing fees increased $165,000 or 28.3 percent to $749,000 due to the
 acquisition of one client during second quarter 2000.  The number of data
 processing clients totaled 8 at March 31, 2001.
     Noninterest expense increased 8.7 percent to $14.4 million for first
 quarter 2001 compared to $13.3 million for the same 2000 period.  Salaries and
 employee benefits, the largest category of noninterest expense, of
 $6.8 million for the three months ended March 31, 2001 increased $175,000 or
 2.6 percent compared to the same period last year of $6.7 million.  The
 increase during first quarter 2001 compared to the same period in 2000
 reflects increases in higher levels of staff and medical insurance premiums.
 The number of full-time equivalent employees of 925 at March 31, 2001
 increased 4.8 percent from 883 at March 31, 2000.  Other noninterest expense
 of $3.8 million for first quarter 2001 increased by $731,000 or 24.0% compared
 to $3.0 million for the same 2000 period.  This increase resulted primarily
 from higher legal fees of $239,000 related to nonperforming loans and from a
 franchise tax recovery of $310,000 collected during first quarter 2000.  The
 efficiency ratio was 42.4 percent during first quarter 2001, compared to
 42.0 percent a year ago.
     Assets totaled $2.5 billion at March 31, 2001, up from $2.3 billion at
 March 31, 2000, reflecting a 10.1 percent increase.  Loans at period end of
 $1.6 billion increased $181.3 million or 12.6 percent compared to $1.4 billion
 at March 31, 2000.  Deposits totaled $2.2 billion at March 31, 2001, up from
 $2.0 billion a year ago, reflecting a 6.4 percent increase.  Excluding
 $38.7 million received from foreign customers on a short-term basis on
 March 31, 2000, deposits increased 8.5 percent from the prior year.
 Shareholders' equity at March 31, 2001 totaled $239.1 million.  The total
 risk-based, tier 1 risk-based and leverage capital ratios of 12.48 percent,
 11.34 percent and 8.24 percent, respectively, at period end substantially
 exceeded regulatory requirements for a well-capitalized banking company.
 
                                 Asset Quality
     At March 31, 2001, total loans of $1.6 billion included $13.2 million, or
 0.81 percent, classified as nonperforming.  The allowance for loan losses to
 nonperforming loans at March 31, 2001 decreased to 149.9 percent, down from
 196.2 percent at March 31, 2000.  Restructured loans of $2.8 million were
 classified as nonaccruing during first quarter 2001.  Net charge-offs for
 first quarter 2001 averaged 0.34 percent of average loans.  The allowance for
 loan losses of $19.8 million represented 1.22 percent of loans at period end.
 Total nonperforming assets at March 31, 2001 of $18.3 million represented
 0.73 percent of total assets, up from .71 percent at December 31, 2000.
 
                               Other Information
     Texas Regional paid a quarterly cash dividend of $0.150 per share on
 April 12, 2001 to shareholders of record on April 2, 2001.
     Texas Regional is a registered bank holding company whose wholly owned
 subsidiary, Texas State Bank, conducts a commercial banking business in the
 Rio Grande Valley of Texas, operating twenty six (26) full service banking
 locations.  Texas Regional stock trades on The Nasdaq Stock Market(SM) under
 the symbol TRBS.
     Additional financial, statistical and business-related information, as
 well as business trends, is included in a Financial Supplement.  This release,
 the Financial Supplement and other information are available on Texas
 Regional's website at www.TRBSinc.com.  The Financial Supplement and other
 information available on Texas Regional's website can also be obtained by
 calling R.T. Pigott, Jr., Chief Financial Officer, at (956) 631-5400.
     This document may contain forward-looking information (including
 information related to plans, projections or future performance of Texas
 Regional and its subsidiaries), the occurrence of which involve certain risks,
 uncertainties and other factors which could materially affect future results.
 For further information please see Texas Regional's reports filed with the
 Securities and Exchange Commission pursuant to the Securities Exchange Act of
 1934, which are available at the SEC's website (www.sec.gov).
     CONTACT: Glen E. Roney, Chief Executive Officer, or R. T. Pigott, Jr.,
 Chief Financial Officer, (956) 631-5400, both of Texas Regional.
 
      Texas Regional Bancshares, Inc. and Subsidiaries
      Financial Highlights (Unaudited)   At / For Three Months Ended
 
     (Dollars in Thousands,      Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31
     Except Per Share Data)       2001     2000     2000     2000     2000
 
     Condensed Income Statements
      Interest Income           $48,465  $48,540  $46,336  $44,691  $41,970
      Interest Expense           24,073   24,374   22,509   20,818   18,812
       Net Interest Income       24,392   24,166   23,827   23,873   23,158
       Net Interest Income (A)   24,853   24,605   24,283   24,273   23,588
     Provision for Loan Losses    1,738    1,875    2,558    2,325    2,169
      Net Interest Income After
       Provision for Loan Losses 22,654   22,291   21,269   21,548   20,989
     Noninterest Income
      Service Charges on
       Deposit Accounts           3,455    3,198    3,008    2,903    2,754
     Other Service Charges        1,075      710      618      658      947
     Trust Service Fees             624      645      592      589      475
     Net Realized Gains on
       Sales of AFS Securities       11       12      ---      ---      ---
     Data Processing Service Fees   749      746      659      687      584
     Other Operating Income         390      390      385      566      448
       Total Noninterest Income   6,304    5,701    5,262    5,403    5,208
     Noninterest Expense
      Salaries and Employee
       Benefits                   6,834    7,237    6,591    6,149    6,659
      Net Occupancy Expense       1,067      948    1,017    1,045      956
      Equipment Expense           1,542    1,532    1,618    1,550    1,427
      Other Real Estate (Income)
       Expense, Net                  88      177       (9)     451       31
      Amortization of Goodwill
       and Identifiable
       Intangibles                1,107    1,108    1,108    1,108    1,145
      Other Noninterest Expense,
       Net                        3,776    2,386    3,007    3,258    3,045
       Total Noninterest Expense 14,414   13,388   13,332   13,561   13,263
      Income Before Income Taxes 14,544   14,604   13,199   13,390   12,934
      Income Tax Expense          5,246    5,112    4,281    4,869    4,563
      Net Income                  9,298    9,492    8,918    8,521    8,371
      Cash Earnings (B)           9,847   10,042    9,467    9,071    8,920
     Common Share Data (C)
      Net Income-Basic            $0.58    $0.59    $0.55    $0.53    $0.52
      Net Income-Diluted           0.57     0.59     0.55     0.53     0.52
      Cash Earnings (B) -Basic     0.61     0.62     0.59     0.57     0.56
      Cash Earnings (B) -Diluted   0.61     0.62     0.59     0.56     0.55
      Book Value at Month End     14.86    14.15    13.15    12.40    12.04
      Cash Dividends Declared     0.150    0.150    0.127    0.127    0.127
     Weighted Average Shares (C)
      Outstanding (in Thousands)
      Basic                      16,091   16,088   16,081   16,054   15,977
      Diluted                    16,199   16,166   16,155   16,148   16,118
     Shares Outstanding at
      Period End (C)             16,091   16,091   16,085   16,080   15,978
     Capital Ratios
      Total Risk-Based Capital
       Ratio                      12.48%   12.35%   12.26%   12.00%   11.78%
      Tier 1 Risk-Based Capital
       Ratio                      11.34    11.20    11.11    10.86    10.63
      Leverage Capital Ratio       8.24     8.14     8.05     7.78     7.70
      Equity to Assets Ratio       9.59     9.39     9.13     8.81     8.50
 
 
      Texas Regional Bancshares, Inc. and Subsidiaries
      Financial Highlights (Unaudited)
      (Dollars in Thousands,
      Except Per Share Data)
                                      At / For Three Months Ended
                           Mar 31,    Dec 31,   Sep 30,    Jun 30,    Mar 31
                            2001       2000      2000       2000       2000
 
     Balances
      Total Assets      $2,493,741 $2,426,097 $2,317,005 $2,262,508 $2,265,314
      Loans              1,624,182  1,587,827  1,519,963  1,494,431  1,442,912
      Securities           638,182    621,945    597,762    556,291    546,520
      Interest-Earning
       Assets            2,296,104  2,216,877  2,121,535  2,054,721  2,053,397
      Deposits           2,170,877  2,109,748  2,064,161  1,977,313  2,039,960
      Shareholders'
       Equity              239,130    227,711    211,451    199,377    192,453
     Average Balances
      Total Assets      $2,435,309 $2,353,909 $2,271,056 $2,246,747 $2,155,845
      Loans              1,610,920  1,551,655  1,503,849  1,471,410  1,402,606
      Securities           613,130    594,090    557,575    551,387    537,067
      Interest-Earning
       Assets            2,230,343  2,153,326  2,068,565  2,040,250  1,946,910
      Deposits           2,124,665  2,077,296  1,992,043  1,995,201  1,930,789
      Shareholders'
       Equity              234,182    218,399    205,489    196,043    189,853
     Selected Financial Data
      Net Income
       Return on Average
        Assets                1.55%      1.60%      1.56%      1.53%      1.56%
       Return on Average
        Equity               16.10      17.29      17.27      17.48      17.73
       Efficiency Ratio (A)  46.00      43.61      45.15      44.18      45.95
      Cash Earnings (B)
       Return on Average
        Assets                1.64       1.70       1.66       1.62       1.66
       Return on Average
        Equity               17.05      18.29      18.33      18.61      18.90
       Efficiency Ratio      44.15      41.71      43.21      42.24      43.96
      Net Interest Income to
       Average Earning
       Assets (A)             4.52       4.55       4.67       4.78       4.87
      Allowance for Loan
       Losses              $19,837    $19,458    $18,602    $18,239    $17,666
      Net Charge-Offs        1,359      1,019      2,195      1,752      1,214
     Nonperforming Assets,
      Past Due Loans &
      Restructured Loans
       Nonaccrual Loans    $13,232     $8,999     $8,951    $13,426     $9,006
       Restructured Loans      ---      3,482      5,190      9,253        ---
       Foreclosed and Other
        Assets               5,039      4,733      4,958      4,806      5,991
        Total Nonperforming
         Assets             18,271     17,214     19,099     27,485     14,997
       Accruing Loans 90
        Days or More Past
        Due                  3,693      4,022      2,135      4,013      3,224
 
     (A) Tax-equivalent basis assuming a 35% tax rate.
     (B) Net income before amortization of goodwill, net of taxes.
     (C) Restated to retroactively give effect for the 10% stock dividend
         declared by the Corporation during fourth quarter 2000 and distributed
         during first quarter 2001.
 
 SOURCE  Texas Regional Bancshares, Inc.