Texas bank M&A flurry shakes up deposit market share standings

A flurry of M&A in 2025 is set to reshuffle deposit market share in the Lone Star State.

Texas bank M&A surged in 2025 as some Texas banks bought their peers to broaden and solidify their market share positions in the state while several large out-of-state buyers bought entry into the state through sizable transactions. The record level of activity is shaking up deposit market share in the state overall and in some of the largest markets such as Dallas, Houston and San Antonio.

"Texas banking is going to be competitive no matter who the names are, but we have introduced some new players, some out-of-state players that just want a larger presence in the state. And that speaks to the kind of the overall attractiveness of the banking market down here," SamCo Capital managing partner Jacob Thompson said in an interview with S&P Global Market Intelligence.

Huntington Bancshares Inc. will jump to No. 11 in deposit market share from no previous ranking in Texas with its back-to-back deals. The Columbus, Ohio-based company dipped its toe into Texas with its July 2025 announced acquisition of Veritex Holdings Inc. and dove in fully with its Cadence Bank buy, announced in October 2025.

Both deals were among the largest for the state and the nation in 2025, kick-starting Huntington's presence in the state and giving it top 10 positions in two major metro areas, snatching sixth in Houston and eighth in Dallas.

"The opportunity set for us in the South and Texas is one we've never experienced, right? At best, the Midwest markets grow at national average. Now we're in markets that are growing much faster," Huntington Chairman, President and CEO Steve Steinour said during a conference presentation in December 2025.

Fifth Third Bancorp will jump to 18th in deposit market share in the state from 448th through purchasing the state's second-largest bank holding company, Comerica Inc. The Cincinnati-based company will take the 13th position in Dallas and 14th in Houston.

Fifth Third also intends to use its acquisition of Comerica as a jumping-off point for growth in the state, including a long-term de novo branch-building strategy to open 150 new branches in Texas by 2029.

"As we add 150 de novo branches to Texas through 2029, we expect to achieve top five locational shares in Dallas, Houston and Austin, which constitutes a $10 billion additional deposit opportunity as those branches season," Chairman, President and CEO Tim Spence said during a conference in December 2025.

– Compare geographic statistics with our Geographic Intelligence screener. – Access Visible Alpha estimates for Huntington Bancshares Inc., Fifth Third Bancorp and Prosperity Bancshares Inc. – Set up email alerts for future Data Dispatches.

Texas' attractive business and population growth rates relative to the rest of the nation are a major draw for out-of-state banks, Thompson said.

"I still go back to those top line demographic indicators. As long as they remain positive and above average compared to the country as a whole, I think you'll see businesses relocate here, you'll see people relocate here, and then the banks are going to follow if they're not already here in some way, shape or form," he said.

The state's projected population growth is 6.47% between 2026 and 2031 versus 2.6% nationwide over that time period, according to Claritas Pop-Facts data.

Veritex, Cadence, Comerica and Independent Bank Group Inc., all 2025 sellers, were each among the top 20 in June 2024 FDIC Summary of Deposits data. The voids left by their sales allowed six banks to gain share. Two banks, Zions Bancorp. NA and NexBank Capital Inc., dropped in the rankings.

But the top 10-ranked banks are projected to maintain their positions at the top. JPMorgan Chase & Co. was the largest deposit holder in Texas as of 2024, followed by Charles Schwab Corp. and Bank of America Corp.

Prosperity Bancshares Inc. maintained its eighth spot, partly thanks to its acquisition of Corpus Christi, Texas-based American Bank Holding Corp. and its announced acquisition of San Antonio-based Southwest Bancshares Inc. Its in-state deposits pro forma with both deals grew 16.1% year over year, the second most of its top 10 peers after PNC Financial Services Group Inc. and much higher than the top 20 median increase of 3.4%.

In San Antonio, Prosperity increased its market share position by nine places, rising to 10th and increasing its deposits in the metro area by 422.8% year over year, largely due to the Southwest Bancshares deal.

Smaller banks in the state are aiming to capitalize on the disruption caused by the onslaught of M&A.

"One of the other interesting things to watch when you have large transactions like this is the competition for talent and lenders," Thompson said. "There's always an opportunity for community banks when these large mergers are taking place to gain a little bit of market share maybe, maybe pick up some business that previously wouldn't have considered banking with them."

The competition is taking place in Texas' hotly contested cities, which are also undergoing marked changes.

In Dallas, three newcomer buyers — Huntington, Fifth Third and SouthState Bank Corp. — join the top 20, with Huntington edging into the top 10. Among the top 20 banks by deposit market share in the MSA, 10 will switch places.

In Houston and San Antonio, the shake-up is slightly more widespread, with 12 banks moving among the ranks of the top 20 in both MSAs.

The major buying spree is set to continue, Thompson said, driven by larger Texas community banks cashing out.

"So if you're in that, call it, $1 billion to $10 billion range of total assets, you're probably having these same kind of conversations, seeing what's gone on in the market over the last 12 months," he said.