Austin, TX - 2006

Sheshunoff & Co. Investment Banking, a leader in merger and acquisition advisory services to financial institutions, today announced the sale of Houston-based Royal Oaks Bancshares, Inc. ($200 million) to First Bank Inc. of Clayton , Missouri ($9.6 billion). Sheshunoff & Co. initiated the transaction and served as the exclusive financial advisor to Royal Oaks Board of Directors.

Under the terms of the agreement, First Bank Inc. will purchase Royal Oaks for $38.62 million in cash. The price represents 3.2x book and 45x earnings as of June 30, 2006. First Banks currently has a presence in California (40% deposits or $3.4 billion), Illinois (31% of deposits or $2.7 Billion), Missouri (23% deposits or $2 Billion) and Texas (6% of deposits or $530 million).

"Sheshunoff & Co. handled our business and this transaction with sensitivity, confidentiality and integrity. They knew our needs were unique and were able to assist us in finding a partner that had common values, philosophies and goals. Our customers, shareholders and management all benefited from Sheshunoff's strategy to find the best buyer. Everyone on their team is knowledgeable and conducted this transaction with total professionalism," says Dean Bass, Chairman & CEO of Royal Oaks Bancshares.

This transaction will nearly double First Bank's deposit base in Houston and increase its branch network from 4 in Houston to 10 branches in the high growth Northwest and Southwest Houston markets. First Banks deposit base will increase from $180 million to $344 million. The transaction, subjected to regulatory and shareholder approvals, is expected to be complete during the first quarter of 2007.

"Royal Oaks Bank was six years old and ready to exit the market at the right price. In just three weeks we found a buyer at their price- First Banks, Inc. out of St. Louis , MO. They said they only wanted to sell to an out-of-market buyer. We listened carefully to their needs and found just what they wanted - an employee friendly buyer at a big price," says Curtis Carpenter, Managing Director of Sheshunoff & Co.

About Sheshunoff & Co. Investment Banking

Sheshunoff & Co. Investment Banking has acted as financial advisor in more than 200 transactions in the past 15 years and has advised financial institutions nationwide for 30 years with merger and acquisition advisory services, valuations, restructuring, and strategic options assessment all to capture shareholder value. Its professionals are dedicated in providing their clients with service, quality and expertise to achieve outstanding results. For more information call 800-279-2241.