Texas State Bank, a unit of Texas Regional Bancshares, has agreed to buy two banking companies in nearby Brownsville in stock swap deals.

Shareholders of Brownsville Bancshares would get $27.6 million in Texas Regional stock. TB&T Bancshares shareholders would get $9.25 million worth.

Texas Regional has $1.3 billion of assets, Brownsville Bancshares $99.1 million, and TB&T $43.9 million.

The acquisitions would strengthen Texas State Bank in Cameron County, where it has operated for several years.

"These mergers will give Texas Regional ... a major presence in a very important market in this region of the Rio Grande Valley," said chairman Glen E. Roney.

The deals are expected to close during the first quarter.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.