Coastal Banc Savings Association, a rapidly growing Texas thrift, expects to boost deposits by $436 million to more than $1 billion with recent acquisitions.
The thrift purchased nine branches on Monday and expects to complete the acquisition of two more next month.
The Houston-based savings and loan paid $5.5 million for nine branches of Guardian Savings and Loan Association, and plans to pay $450,000 for two branches of Bank United of Texas FSB.
Manuel J. Mehos, Coastal's chairman and chief executive, says he wants more. "Our target market is the southern part of Texas. We are trying to get more market density in that area."
The acquisitions will give Coastal a total of 26 branches and put it in the San Antonio and Corpus Christi markets, as well as in several smaller cities.
Mr. Mehos said Coastal can handle acquisitions of two and three branches at a time, but anything larger would require the thrift to raise capital through a stock offering.
Coastal is a seven-year-old institution that was formed in a series of acquisitions. In 1986, Mr. Mehos led a group of investors who acquired a $10 million-asset thrift.
The thrift has been on the acquisition trail since mid-1988 - and completed four at once in the first deal under the government-led Southwest plan. Coastal now has $1.6 billion in assets.
Mr. Mehos said the goal this year is to expand Coastal's loan portfolio by booking construction, consumer, and mortgage loans. At the end of the first quarter, the thrift had $319 million in loans and $852 million in mortgage-backed securities.
