trending Market Intelligence /marketintelligence/en/news-insights/trending/soZHJDGeokt3DQlZFu7siQ2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

By Texas standards, recent MOE biggest bank M&A deal

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive


By Texas standards, recent MOE biggest bank M&A deal

The pending tie-up between Texas Capital Bancshares Inc. and Independent Bank Group Inc. is the largest depository M&A deal in the history of Texas, a state that has seen bank M&A activity surge in the second half of 2019.

The $3.12 billion merger of equals between Dallas-based Texas Capital and McKinney-based Independent Bank announced Dec. 9 eclipses the second-largest Texas bank M&A transaction — the $2.16 billion sale of Texas Regional Bancshares Inc. to Banco Bilbao Vizcaya Argentaria SA in 2006 — according to S&P Global Market Intelligence data based on announced deal value and not adjusting for inflation.

The Texas Capital and Independent Bank agreement becomes the 15th bank M&A deal announced in Texas since July 1, and that total is more than any other state during the second half of the year. The recent activity also marks a significant uptick from 2019's first half, which saw seven bank deals announced in Texas. With a couple of weeks remaining in the year, the total announcements of Texas bank M&A deals in 2019 has matched the 2018 total of 22.

SNL Image

Deal activity has helped reshape the ranking leaders atop Texas' list of largest community banks under $10 billion in assets. Dallas-based Veritex Community Bank, Texas' second-largest community bank, saw its loans and deposits more than double over the last year, thanks to its merger of equals with Houston-based Green Bank NA, which closed on Jan. 1. Veritex trails only First Financial Bank NA, which moved to the top of the list in part because Plano-based LegacyTexas Financial Group Inc., the parent company of LegacyTexas Bank, closed its sale to Houston-based Prosperity Bancshares Inc. on Oct. 31. First Financial Bank's parent, First Financial Bankshares Inc., announced Sept. 19 it would acquire Bryan-based TB&T Bancshares Inc. for $207.6 million.

SNL Image

Texas, like most of the rest of the U.S., is seeing more branch closures than openings, as banking continues to go digital. In the third quarter, 60 bank or thrift branches were closed in Texas, while only 27 were opened. In the last 12 months to Sept. 30, 185 branches were closed and 129 opened in the state.

SNL Image

Texas community banks and thrifts continued to outperform in the third quarter, topping the national median in five of six major financial metrics.

The median return on average equity for Texas community banks and thrifts under $10 billion in assets was 11.74% in the third quarter, above the Southwest median of 11.41% and higher than the national median of 9.86%. Meanwhile, Texas' 4.12% median net interest margin was 8 basis points lower than the Southwest median but 27 basis points higher than the U.S. median.

Loans at Texas community banks grew by a median of 5.7% year over year in the third quarter, surpassing the 4.7% growth in the Southwest and 4.4% median growth for the U.S. as a whole. In the third quarter, Texas community banks posted median deposit growth of 4.4% year over year, equal to the national median and better than the Southwest median of 3.7%.

SNL Image

Click here for an Excel spreadsheet containing results for all Texas community banks in the third quarter.