Wells Fargo & Co. has agreed to buy Texas Bancshares in San Antonio for an undisclosed amount.

The deal, announced May 28, would provide Wells with about $388 million of assets and 10 branches in San Antonio, Corpus Christi, and nearby cities.

Analysts said the San Antonio area is attractive because of its size and rapid growth.

Additionally, Texas is an attractive market for large regionals such as Wells Fargo, which have expertise in buying up community banks, said R. Jay Tejera, an analyst with Ragen MacKenzie Inc. in Seattle.

"Texas is a high-priority market, but it's a perishable opportunity," Mr. Tejera said.

"It's still very fragmented, but it won't stay fragmented forever."

The former Norwest Corp., which merged with Wells Fargo in November, began snapping up community banks in Texas in 1994. Since then, the $202 billion-asset banking company has closed 31 small deals there to become the fourth-biggest in Texas.

Texas Bancshares is the holding company for First National Bank of South Texas and the Bank of South Texas.

"The community banking culture and philosophy of the banks owned by Texas Bancshares are very similar to Norwest," said William R. Goertz, president of the greater Texas region for the bank.

The deal is expected to close in the fourth 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.