Norwest Corp. has signed an agreement to acquire $600 million in assets from Franklin Federal Bancorp, an Austin thrift that is going out of business.
Terms of the agreement were not disclosed.
Franklin Federal is a subsidiary of Club Corporation International, the largest owner and manager of private clubs and golf resorts. The thrift, which has 10 locations in Austin, already has liquidated the rest of its assets, $500 million in investments.
"With this increased market presence, we will have the opportunity to grow in one of the most dynamic and exciting markets in Texas," said John Stumpf, regional president for Norwest Banks Texas.
The transaction, which is expected to be completed by the fourth quarter, would place Minneapolis-based Norwest among the top three in the Austin market.
Once the acquisition is complete, adding 18 offices in Austin, Norwest's assets in the state capital will reach $1 billion.
Norwest has 113 banking offices in Texas, and $7.3 billion in assets. Norwest Corp. has $77.8 billion in total assets.