Add Texas Regional Bancshares to the growing list of out-of-town banking companies setting up shop in Houston.
The McAllen company, with $2.5 billion of assets, announced its first deal in more than two years Monday when it said it would acquire Riverway Holdings in Houston for $48 million in stock. Glen E. Roney, the chief executive officer of Texas Regional, said that it wanted to expand into a new market, and that the deal for $677 million-asset Riverway would give it a toehold in Texas largest city.
Riverway, the parent of Riverway Bank, has just one branch, but Mr. Roney said Texas Regional, the holding company for Texas State Bank, is already planning to open additional branches in and around Houston.
We will certainly work to increase our market share and increase the banks presence, but we do have a large number of competitors and very good banks, Mr. Roney said.
Many of these competitors are out-of-towners who have entered the market through acquisitions in the past two years. Tulsa-based BOK Financial, New Orleans-based Whitney Holding Co., and Seattle-based Washington Mutual Inc. were all drawn to Houston because of its strong economy.
Texas Regional acquired four banks, all in the Rio Grande Valley, from 1997 through 1999. It has the top market share in the four South Texas counties where its branches are located.
Its deal for Riverway is expected to close in the first quarter.
Texas Regionals stock fell slightly on news of the deal. At midday Monday the stock was trading at $36.85, down less than 1% from its closing price on Sept 10, the last day the stock market had been open. Riverway is privately held.