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SURETY CAPITAL ANNOUNCES INTENT TO ACQUIRE BANK OF EAST TEXAS AND FIRST STATE BANK

 SURETY CAPITAL ANNOUNCES INTENT TO ACQUIRE BANK OF EAST TEXAS
 AND FIRST STATE BANK
 HURST, Texas, July 23 /PRNewswire/ -- Surety Capital Corporation (NASDAQ: LOAN) announced today that its subsidiary, Texas Bank, N.A., has entered into agreements for the merger of the Bank of East Texas, located in Chester, Texas, and First State Bank, located in Wells, Texas, into Texas Bank. Both are Texas banking associations located near Lufkin, Texas.
 On April 20, 1992, Surety entered into non-binding letters of intent contemplating the purchase of 100 percent of the common stock of the Bank of East Texas and First State Bank, or a merger between Texas Bank and the other banks, with their respective bank holding companies receiving cash. The purchase price for each bank would be its book value, to be determined pursuant to the financials of each bank or pursuant to an audit or other specified review procedure prepared by Surety or its accountants.
 At Dec. 31, 1991, the Bank of East Texas had total assets of $8,765,000, total revenues of $769,000, total equity of $547,000 and net income of $3,000, and First State Bank had total assets of $12,371,000, total revenues of $1,138,000, total equity of $1,050,000 and net income of $98,000.
 Surety intends that the transactions would be financed through a combination of working capital of Surety and the issuance of equity securities by Surety.
 The completion of the mergers is subject to a number of contingencies, including the approval by Surety's shareholders of an increase in Surety's authorized shares to allow equity financing, due diligence review by Surety of the Bank of East Texas and First State Bank and their respective loan portfolios, regulatory approvals by applicable banking authorities and other matters. If consummated, the transactions are expected to close on or before Oct. 31, 1992, within 30 days following receipt of all necessary approvals.
 Jack Bean, president of Surety, stated: "The Bank of East Texas and First State Bank are located in the service areas of Texas Bank in Lufkin, Texas. We expect significant cost savings through these mergers, which will also open many new avenues of business and growth for the company. We would continue to serve the community in the same fashion as has been done by these banks."
 Surety Capital Corporation is an independently owned bank holding company located in Hurst, Texas. Surety owns a subsidiary national bank, Texas Bank, N.A., with full service offices located in Hurst, Texas, and Lufkin, Texas. Texas Bank, N.A., engages in a general commercial and consumer banking, and concentrates its lending activities in the area of insurance premium financing.
 -0- 7/23/92
 /CONTACT: C. Jack Bean, president, Surety Capital Corporation, 817-498-8154/
 (LOAN) CO: Surety Capital Corporation; Texas Bank, N.A.; Bank of East Texas;
 First State Bank ST: Texas IN: FIN SU: TNM


GK -- NY079 -- 2568 07/23/92 13:20 EDT
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Publication:PR Newswire
Date:Jul 23, 1992
Words:492
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