he idea for Texas Regional Bank emerged in 2008 when four Valley businessmen recognized the community banking void in their local region. They realized, that since the introduction of interstate branch banking in the 1990s, the Rio Grande Valley had experienced tremendous consolidation of its privately-held community and regional banks. In just ___ years, locally-owned banks had decreased from approximately 55 to 15, reducing the banking choices for Rio Grande Valley residents by two thirds.
Michael Scaief, Bobby Farris, Tudor Uhlhorn and Bill Elliff already were,experienced leaders in many diverse lines of business and strongly committed to community service. Together, they set a goal of developing a regional banking franchise with banking centers in the major markets of the Valley. The group identified what had been successful among local regional banks in the past and adopted these strategies as operating principles.
Key objectives in their business plan were to:
Initially, the group intended to establish a brand new banking operation in the Rio Grande Valley. But, as their planning came together in mid-2009, at the pinnacle of the sub-prime financial collapse, they quickly realized regulators were spending most of their time closing banks rather than approving new charters.
The organizers decided to change their strategy, from chartering a new bank to acquiring an existing franchise. In September 2009, a revised business plan was submitted to the regulators and Texas State Bankshares, Inc. (TSBI) was organized to serve as the bank’s holding company, in anticipation of an acquisition.
The TSBI board soon was charged with raising capital to acquire Falfurrias State Bank. In February 2010, the capital raise began, with a goal of $18 million. The community response was overwhelming and, in less than six weeks, the holding company closed its capital raise with just shy of $24 million from approximately 160 influential Valley families.
On May 4, 2010, Texas State Bankshares, Inc. acquired 100% of the stock of Falfurrias State Bank. Ninety days into the acquisition, the charter was relocated to Harlingen. The bank was renamed Texas Regional Bank, and its relationship style of banking articulated in the new tag line, The people you know. At the time of closing, Texas Regional Bank had $34 million in assets.
Texas Regional Bank celebrated another milestone in its history on November 18, 2013, when Border Capital Bank was acquired. The merger added a trust department and four more locations in the McAllen market.
Today, Texas Regional Bank has assets of approximately $600 million and financial centers in Brownsville, Edinburg, Falfurrias, Harlingen, McAllen, Mission, and Weslaco. The bank leadership now includes: Michael Scaief, Chairman; Paul Moxley, Chief Executive Officer; Brent Baldree, Chief Lending Officer; Michael Lamon, Chief Operations Officer; Mark Ramirez, Chief Financial Officer; and Rolando Carrasco, Chief Compliance Officer. Texas Regional Bank is a whole-owned subsidiary of Texas State Bankshares, Inc. with equity in excess of $60 million.
Without a doubt, the influence of its broad shareholder base and team of well-known and seasoned bankers has made it the “Bank of Choice” for many in the Rio Grande Valley.