EXTRACO BANKS ANNOUNCES NEW BELTON LOCATION

Wednesday, August 9, 2006 - BELTON, Texas: Randy Ramsey, Extraco Banks Regional President, announced today that Extraco has closed on the purchase of property in Belton's River Fair development to be used as the future building site for a new Belton Financial Center.

In an effort to continue delivery of a superior customer experience to its rapidly growing customer base in Belton, Extraco plans to invest in a state-of the-art facility at this north Belton location.

The new facility will continue Extraco's vision to offer both traditional and non-traditional financial products in a one-stop-shop environment, using a relationship-based approach. "Continued growth in Belton's residential, retail, and commercial markets has provided Extraco the opportunity to grow along with the community," said John Agan, Senior Vice President and Market Executive for the Belton Financial Center. "We're proudly committed to the bright future of Belton, Texas," he added.

Extraco Corporation celebrated 100 years and three generations of family management on July 12, 2002. Founded as a cotton warehousing company, Extraco is the largest and most comprehensive independent financial institution headquartered in Central Texas with over $1 billion in assets, $90 million in capital, a loan limit of $13 million, over 75,000 customers, and 470 employees. Extraco's fifteen financial centers are located in Georgetown, Killeen, Harker Heights, Copperas Cove, Waco, Temple, Belton, Troy, Lorena, Gatesville, Hamilton and McGregor.