The merger had been completed on 2000's last business day. Southwest is issuing four million shares of common stock to Citizens shareholders. That adds up to 249,443 Southwest shares for every one share of Citizens.

Melding the two banks generates a financial institution with 32 branches, $3.8 billion in assets and a loan limit of up to $50 million. But customers of the two banks can't use one another's facilities. That will come in second quarter 2001 when the two systems will be merged into a single operation. "Completing the legal merger has been a major focus for us and for Citizens," Murphy says.

Citizens' subsidiaries include Citizens Bank & Trust Co., Pasadena State Bank and Baytown State Bank with a total of six locations in the Baytown area and total assets of $425 million as of Sept. 30, 2000.