The Federal Reserve Board gave Texas Financial Bancorp. permission Monday to acquire Riverside National Bank, Grand Prairie, Tex., rejecting a Community Reinvestment Act protest.
The merger would give the Minneapolis-based Texas Financial control of $1.34 billion in assets.
The Fed overrode a challenge to the deal by the African American Council for Empowerment, which said Riverside did not adequately serve the small- business or housing-related needs of the Dalworth neighborhood in Grand Prairie. The Fed noted that Riverside received a "satisfactory" CRA grade on its most recent exam, while Texas Financial's lead bank got an "outstanding" rating.
Also on Monday, the Fed gave First Southern Bancorp permission to acquire Lincoln Financial Bancorp. The Fed noted that the union of the two Stanford, Ky.-based institutions would reduce competition in the market. But it said at least 10 other lenders are active in the community.
Finally, the Fed approved Perryton Bancshares' bid to become a bank holding company by acquiring all the stock of Perryton National Bank, Tex.