Mississippi-based bank continues Central Texas expansion
May 2, 2014
Austin Business Journal
BancorpSouth Inc. has continued its push into the Austin market with the acquisition of Colonial National Mortgage, a residential mortgage company that operates three Central Texas offices
The deal comes four months after Mississippi-based BancorpSouth announced plans to acquire the parent company of First State Bank of Central Texas, Central Community Corp.
The merger with Fort Worth-based Colonial National Mortgage will give BancorpSouth 18 employees in the Austin area. The company plans to hire an additional 8-10 employees in the coming year, BancorpSouth said in a news release
During the next 12 months, BancorpSouth expects to complete $200 million in business following the completion of the First State Bank of Central Texas deal in June, the company said
In January, bank executives disclosed that BancorpSouth was buying First State Bank of Central Texas for $211 million
The global recession combined with tighter bank regulations mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 have made it more difficult to generate profits. As a result, smaller banks have been selling to larger firms, said Dan Bass, managing director of investment banking in the Houston office of Performance Trust Capital Partners LLC.
Ranked by local deposits as of June 2013, First State Bank of Central Texas is the fourth-largest bank headquartered in the Austin area with deposits valued at almost $289 million, according to data compiled by the Austin Business Journal
Founded in 1997, First State has 31 branches in Texas. It operates 11 branches and employs 62 workers in the Austin area