There really isa difference in Banks!

2 0 1 1 A N N U A L R E P O R T

www.austinbank.com

Our COre ValuesHones ty. se r v i ce . I n teg r i t y. Con f iden t i a l i t y.

Proudly serving East Texas.

2011 HigHLigHTs:• Bankemployeesenjoyedan extraordinary training session on august 23, 2011: “ritz Carlton legendary service – radar On AntennaUp,”presentedby BrianGrubb.

• OnlineBankingAlertsenhanced ConsumerOnlineBankingtohelp customersmonitortheiraccounts byemail,textoronline.Alertsare availableforChecking,Savings, CDs and loans.

• MeadowLakeLocation,alimited servicebankingfacilityopened withintheMeadowLakeSenior LivingCommunity.TheGrand Openingwascelebrated October25,2011.

• AustinBankHistoryvideowas launchedontheBankwebsite and https://www.austinbank.com/AboutUs/OurStory.aspx

• AustinBankFinancialServices is offered in all austin Bank communitiesforfinancialplanning andinvestmentsthrough InvestmentCentersof America.

“Webelieveourteammakesallthedifferencewhencustomerschooseabank.Wesupportourstaff throughtraining,scholarshipsfortheirchildrenanddollarscontributeddirectlytotheorganizationstheyserve.Thepeopleof AustinBankhavealwaysbeenandalwayswillbeourgreateststrength.”

Our people are the difference.

Employee difference

Community difference

Voted “One of theBest Companies to Work for in Texas” in 2011

Thirdtimetobehonoredwiththisdistinguishedaward

Named

Jeff austin III,ViceChairmanof theBoard

Jeff austin, Jr., Chairmanof theBoard

H 2011 service Awards AustinBankhonored40employeeswith345combinedyearsof service.

H 2011 Training Hours AustinBankemployeescompleted16,712hoursof training.

H Leadership Class of 2011 17AustinBankgraduates

H 2011 Community involvement Awards AustinBankhonoredfourbankemployeesandadirectorforvolunteerworktotheir communityserviceorganization. Estefany Aranda Child Protective services in Cherokee County Jennifer BaskinVanHealthcareCenterActivityFund Donna BoboZontaInternationalClub Nancy Washburn aCCess Harry Tilley, Director HelpingOthersPursueEnrichment(HOPE)H 2011 scholarships Scholarshipswereawardedto37EastTexashighschoolseniorsaspartof AustinBank’sCommitment-to-Communityprogramthatsupportstheeducational goals of area youth.

“Weproudlycontinueourlonghistoryof strengthandstability.Ourlegacyhasbeentheresultof hardwork,adherencetofoundingprinciplesof honorandintegrity,prudentdecisions,andourdedicationtoEastTexas.Thankyouforyourtrustandloyalty.”

“AustinBankpridesitself asaCommunityBankwherelocalpeoplemakelocaldecisions.Therereallyisadifferenceinthewaywedobusinessandyoucanseeiteverydayinourcommitmenttoourcustomers,ouremployeesandourcommunitiesweserve.”

JohnP.Williams,President/CEO

2008 2009 2010 2011

TOTA L A s s E T s(000)

$1,046 $1,042

$1,246

2008 2009 2010 2011

TOTA L L OA N s(000)

$757 $800

$925

2008 2009 2010 2011

TOTA L D E P O s i T s(000)

$912 $905

$1,081

2008 2009 2010 2011

RETURN ON AssETs

1.25%1.18% 1.16%

2008 2009 2010 2011

LOAN-TO-DEPOsiT83.00%

87.58% 84.61%

2008 2009 2010 2011

TOTA L C A P i TA L(000)

$96$108

$131

Local ownership and dedicated leadership

Jeff Austin, Jr.Chairmanof theBoard

Jeff Austin iiiViceChairmanof theBoard

John P. WilliamsPresident/CEO

sissy Austinsenior executive Vice President

E. glenn Basssenior executive Vice President

Larry Boltonsenior executive Vice President

Keith ChambersSeniorExecutiveVicePresident/CFO

Russ gideonsenior executive Vice President

Billy Mullinssenior executive Vice President

Austin Bank Executive Committee

Well capitalized with quality assets 2011 2010AssETsCashandbalancesduefrombanks $83,072,000 $92,365,000

Securitiesavailableforsale 170,130,000 146,765,000

Netloans 974,422,000 915,275,000

Other assets 101,864,000 91,883,000

TOTAL AssETs $ 1,329,488,000 $ 1,246,288,000

LiABiLiTiEs AND sTOCKHOLDERs’ EQUiTYNon-interestbearingdeposits $327,079,000 $275,278,000

Interestbearingdeposits 826,545,000 806,204,000

Totaldeposits 1,153,624,000 1,081,482,000

Securitiessoldunderagreementstorepurchase 10,280,000 12,060,000

Otherliabilities 22,124,000 21,660,000

Totalliabilities 1,186,028,000 1,115,202,000

Total stockholders’ equity 143,460,000 131,086,000

TOTAL LiABiLiTiEs AND EQUiTY $ 1,329,488,000 $ 1,246,288,000

$1,329

$986

$143

$1,154

1.21%

84.47%

Michael Austin NeilDirector

Jane Austin ChapmanDirector

(Notpictured)

Memberof:

Member FDiCwww.FDIC.gov Named Named

Better Business Bureauof Central East Texas2006TorchAwardRecipient

Website: www.austinbank.com

Headquarters: 200EastCommerceSt.,P.O.Box951 Jacksonville,TX75766 903-586-1526|903-541-2086(fax)

Parent Company: AustinBancorp,Inc.

Date founded: 1900

For information: customercare@austinbank.com

Contact: PattySteelman;CFMP,SVP/Directorof Marketing 903-871-2519|psteelman@austinbank.com www.austinbank.com

Named

Banking Locations to benefit the communities we serve31 banking locations in 21 cities and 10 counties

Jeff austin, Jr.

Jeff austin III

sissy austin

e. Glenn Bass*

larry Bolton

GeneBrumbelow

Todd Burton*

KeithChambers

JaneAustinChapman

Charles Creed*

Don Dacus*

MarionDingler*

russ Gideon*

J.N.Grimes*

GlenHamilton

C.S.(Buddy)Hinton,Jr.*

WilliamM.Holland*

LowellHolloway*

C.L.HopsonII

Barry Hughes

ron Jurenka*

Bryant langford*

ronny e. lee

BillyMullins

MichaelAustinNeill

RobertNichols

Jason Petersen*

HerbertRiley*

BrendaSharp*

JoeH.Sharp,Jr.

EddieSmith*

J.W.Sparkman*

Joe Terrell*

Harry Tilley*

RickWaldrop*

JohnP.Williams

*advisory Directors

®

12/11

AUsTiN BANK DiRECTORs