Writer: Jerrica DuBois
2 min read June 2022 — With the uptick in mergers and acquisitions in the banking industry, expansions and branch openings are a welcome sight for major metropolitan areas. San Antonio is no exception as it has seen the emergence of new banks to the region over the last year, and also expansions of financial institutions that are based in the Alamo City. Invest: explores some of the big banking moves made in San Antonio over the last 12-months.
Third Coast Bank
Third Coast Bank, based in Houston, is heading to San Antonio. Construction is underway at the Print building along Broadway, turning the space into a corporate office. The lease, signed in September includes 18,000 square feet on the fourth floor for office space and 3,000 square feet for a branch on the first floor.
The opening date for the branch has yet to be released, however, Third Coast is looking to open three to four branches in the region over the next few years in addition to the branch at the Print building. The bank is also planning an expansion to the Rio Grande Valley.
Little Rock-based Encore Bank opened a San Antonio branch last fall at The Soto, where it has leased 5,000 square feet. The bank marks the first tenant to move into Texas’ first mass timber office building after its completion. The bank mainly serves small- and mid-size businesses and operates a single flagship branch in each market rather than multiple locations. With accessibility to the entire city, the Soto was a logical choice for Encore in San Antonio.
Encore currently has locations in Arkansas, Missouri, Texas and Florida. It is also continuing expansion, preparing to add markets in the Carolinas and Colorado.
Texas Partner’s Bank
San Antonio’s Texas Partners Bank, which operates the Bank of San Antonio, Texas Hill Country Bank, and Bank of Austin, is planning for growth after its holding company raised $35 million. The three banks merged under one charter in 2020, and the company posted almost $4.3 million in net income on $19.6 million in revenue in the first quarter ended March 31. That compared to $8.7 million in net income on $21.6 million in revenue in the same period for 2021.
A decline in noninterest income as well as increase in salaries and employee benefits led to the decrease reflected on the bank’s bottom line in the latest quarter.
Broadway Bank, which ranks as the 34th largest operating bank in Texas based on assets, according to the Texas Department of Banking, is looking toward expanding to the Dallas-Fort Worth region.
Broadway has 36 branches, including 21 in San Antonio where it began 81 years ago. It also operates in Comal, Gillespie, Guadalupe, Hays, Kendall, Kerr, Medina and Travis counties.
Broadway reported $5.2 billion in assets at the end of last year, had almost $2.5 billion in loans and nearly $4.7 billion in deposits at the end of 2021. The bank also earned $52.6 million on $176.4 million in revenue last year. By comparison, it generated $37.7 million in net income on $167.6 million in revenue in 2020.
Frost Bank has its sights on Houston and Dallas, and as regulations continue to ease up, the San Antonio based bank is taking full advantage.
The $51.3 billion-asset bank has opened 25 branches in Houston over the past four years, and plans to open eight more in the area in the next two years. The bank is also in the midst of a similar expansion in Dallas, where next quarter it plans to open its third of 28 new locations.
The bank has attributed its year-over-year rise in loan growth for the end of the Q1 to its expanding branch footprint.