BofA Seeks Buyer for Texas Retail Bank

Bloomberg News

BankAmerica Corp. said it's putting its 166-branch Texas retail bank up for sale, as the San Francisco-based bank weeds out businesses it says aren't profitable enough. In leaving Texas, BankAmerica is getting out of one of the country's fastest-growing markets, though the company said it will retain corporate banking and other businesses there. Bank of America Texas has $5.3 billion in assets and $4.4 billion in deposits. The move comes as U.S. banks expand some units and pare others to get the greatest return on capital. Retail banking may be the most visible part of a bank, yet it's often slow growing and less profitable than other businesses. BankAmerica entered the Texas consumer market in 1991 when it acquired Village Green National Bank of Houston from the Federal Deposit Insurance Corp. The bank added Commerce Federal Savings Assn. and Sunbelt Federal Savings, both from the Resolution Trust Corp.

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