B of A Confirms Bid for Sunbelt Savings

Despite being just three weeks away from completing the biggest banking merger in U.S. history, BankAmerica Corp. may also be on the verge of a major expansion in Texas.

In an interview Friday, BankAmerica Chairman Richard M. Rosenberg confirmed that the bank has bid on Sunbelt Savings, a large Dallas-based thrift being sold by the federal Resolution Trust Corp.

Rosenberg declined to comment on the bank’s interest in another institution, Houston-based First City Bancorporation, that is expected to be sold soon in a government-brokered deal.

News reports out of Texas portray BankAmerica, parent of Bank of America, as the probable winning bidder for Sunbelt.

A spokeswoman for the RTC declined comment. BankAmerica has for months been considered one of the favorites to buy ailing First City.

“If an opportunity presents itself in Texas during this period of time--(one) that is not an opportunity that will strain us--we will certainly continue with our Texas expansion,” Rosenberg said, explaining that expansion in Texas remains “critically important” to B of A.

BankAmerica set up a beachhead in Texas last year when it bought a small failed bank in Houston.

In a story Friday, the Houston Post said that Sunbelt’s future is expected to be resolved next week. Sunbelt has about $4 billion in assets and 112 branches. First City has about $10 billion in assets and 85 branches.