Continuing its buying spree in the Rio Grande Valley, Texas Regional Bancshares announced plans Wednesday to buy 72-year-old Bank of Texas of Raymondville.
McAllen-based Texas Regional, parent company of Texas State Bank, would pay $9.6 million in cash for Bank of Texas and its holding company, Raymondville Bancorp. Texas Regional's assets total $1.5 billion and Raymondville Bancorp has assets of $64.9 million.
The deal, expected to close in early 1998, is one of several pending for Texas Regional. In September the company announced plans to buy TB&T Bancshares, Brownsville, for about $9 million in stock; in October it agreed to buy Brownsville Bancshares for $27.6 million in stock.
Texas Regional's sole owner is Rollins M. Koppel, a Texas attorney. Guy C. Fambrough, president and chief executive officer of Bank of Texas, said Mr. Koppel, 68, was selling the bank mainly because his three adult children were not interested in assuming control.
Mr. Fambrough, whose father was director of Bank of Texas bank for 51 years, said its name would be changed to Texas State Bank. Most of the bank's staff would probably be retained, he said.