Large Texas Banks Moving Off Critical List

Rescues of the last large problem banks in Texas could signal new life for the state’s limping economy, financial analysts said Friday after the bailouts of banks based in San Antonio and Ft. Worth.

Federal regulators pledged $250 million to National Bancshares Corp. of Texas in San Antonio less than 24 hours after bailing out Texas American Bancshares Inc. in Ft. Worth with $900 million.

Equimark Corp. of Pittsburgh will take over the San Antonio-based holding company, which owns 12 banks with assets of $2.3 billion and deposits of $2.2 billion.

Late Thursday, the FDIC announced Deposit Guaranty Bank of Dallas would take over 24 subsidiary banks owned by Texas American. The subsidiaries will be part of Texas American Bridge Bank, an FDIC-created entity, until Deposit Guaranty’s acquisition is complete.

The Texas American transaction involved the closure of 24 banks, raising the total number of Texas bank closings this year to 95. Since 1984, 290 Texas banks have failed. Nationwide, 131 banks have failed this year.

But Texas American objected to the planned arrangements, saying it intended to file lawsuits against the Office of the Comptroller of the Currency and the FDIC.

Frank Anderson, a banking analyst for Stephens Inc. in Little Rock, Ark., said the deals end the problems for Texas’ large banks.

“A vital and important step in the recovery of Texas is getting these banks recapitalized,” Anderson said. “There must be a vehicle for raising capital, for business to expand and new companies to come in.

“We’re already seeing visible signs of recovery, especially in Houston. I’m highly encouraged,” Anderson said.

With the resolution of the Texas American and National Bancshares deals, each of Texas’ nine largest holding companies have found new owners in the past three years. Deposit Guaranty was the only Texas company to become owner of one of the problem banks.

“Obviously we’re excited,” Deposit Guaranty Chairman Robert Steinhart said of the Texas American acquisition. “We have a unique opportunity here . . . We see an opportunity for a Texas-based bank and Texas-managed bank.”

James H. McLaughlin, president of Equibank, which has $3.7 billion in assets, will become National Bancshares’ chief executive.

Equimark is contributing $31 million to the National Bancshares transaction and, with its wholly owned subsidiary, EquiManagement Inc., will own about 44% of National Bancshares’ stock. Another $86 million is being raised from other investors through private placements of preferred and common stock.

National Bancshares’ existing stockholders will retain a 2% stake in the rescued bank.