SAN ANTONIO, TX – Texas State Bank, headquartered in McAllen, Texas, has been honored by Clarke American, Inc., with the company’s 2004-2005 Partnership Excellence Award. The annual award pays tribute to select financial institutions that have demonstrated an outstanding commitment to building a true partnership with Clarke American based on mutual goals of growth and superior service to account holders.

“We are pleased to honor Texas State Bank with the 2004-05 Partnership Excellence Award,” says Brian Savage, Senior Vice President, Partnership Development. “We value the relationship that has been built with them. Clearly, Texas State Bank not only understands partnership but also excels at it and celebrates the many ways in which we have joined together in common goals and purpose.”

Financial institutions honored with the Partnership Excellence Award excel in the areas of error reduction, mutual strategic goals, account holder satisfaction, retention and growth. The award specifically recognizes financial institutions that encourage account holders to move from traditional check ordering processes to more convenient, accessible and cost-efficient order entry channels, such as the Internet and the telephone.

“Texas State Bank is pleased to be recognized with this meaningful award,” said Craig Lewis Executive Vice President/Regional Operations Manager. “Our partnership with Clarke American has a profound affect on our business and the ways we are able to meet the needs of our account holders. While we appreciate being honored with the Partnership Excellence Award, our real reward comes from the increased customer satisfaction, growth and profitability that we have gained from working collaboratively with Clarke American – a company that truly works to understand and support our business.”

About Clarke American

Clarke American provides checks and check-related products, contact center services, Internet and direct response marketing solutions for the financial services industry. Each year, the company produces more than 10 billion personal and business checks in a variety of formats for more than 4,000 banks, credit unions and other financial institutions nationwide. The company has more than 3,200 associates and a national network of electronically linked production facilities and customer service centers located throughout the United States.

Clarke American is a recipient of the 2001 Malcolm Baldrige National Quality Award in the manufacturing category, awarded by the U.S. Department of Commerce, and is the recipient of the 2001 Texas Award for Performance Excellence given by the Quality Texas Foundation. For more information about Clarke American, visit HYPERLINK "http://www.clarkeamerican.com" www.clarkeamerican.com.

About Texas State Bank

Texas State Bank is a wholly owned subsidiary of Texas Regional Bancshares, Inc., a bank holding company based in McAllen, Texas whose shares are traded on The Nasdaq Stock Market® 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 web site at http://www.trbsinc.com and can also be obtained by calling Janie Moran, Controller, at (956) 631-5400.

This document and information on the Texas Regional’s web site may contain forward-looking information (including information related to plans, projections or future performance of Texas Regional and its subsidiaries and planned market opportunities and synergies from mergers), the occurrence of which involve certain risks, uncertainties, assumptions and other factors which could materially affect future results. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Texas Regional’s results could differ materially from Texas Regional’s expectations in these statements. Texas Regional assumes no obligation and does not intend to update these forward-looking statements. For further information please see Texas Regional’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s web site at http://www.sec.gov.

For further information, contact Glen E. Roney, Chief Executive Officer at (956) 631-5400 http://www.texasstatebank.com.