Independent Banker

Independent Banker

Texas State Bank executives—Vance Jones, left, executive vice president of financing at Texas State Bank, and Gary Cox, the bank’s president, state town bank’s proceeded lending success is dependant on regional control and attention that is personal.

Diversity Plugs Oil Influence in West Texas

Variety helps keep an economy healthier, and San Angelo, Texas, has it. The economy for the western Texas city is run on Goodfellow Air Force Base, Angelo State University, two hospitals that are major cotton agriculture plus the oil industry. Thus it is no real surprise that Texas State Bank, the only community bank chartered in San Angelo, has enjoyed solid development in its financing company. Amount rose 7 % in 2014 and ten percent in 2013.

“One associated with the positives of San Angelo is the fact that this has perhaps not been a growth or bust environment,” states Gary Cox, president regarding the $260 million-asset community bank. “It’s always kind of constant.”

The variety associated with the community is mirrored in Texas State Bank’s loan profile: 41 per cent commercial or commercial real-estate, 30 % domestic mortgages, 20 % agricultural, 5 per cent construction and land development, and 4 consumer installment credit that is percent.

Oil isn’t always king

Cox records that the oil industry, while pouring money to the grouped community during happy times, will not hold sway in San Angelo want it does in a few other Texas communities. “When oil costs had been high, the businesses drilling and leases that are acquiring tossing lots of money around,” he states. “As the oil market started warming up, we attempted to remind ourselves it would forever n’t last.”

Cox’s prediction ended up being correct. As oil costs have actually fallen in present months, task from the oil industry has declined. But Texas State Bank has had the slowdown in stride. “Our lending visibility related to the oil industry is not tremendous, therefore we’re not losing sleep over it having a long-lasting effect on our model,” he claims.

In reality, a slowdown within the oil company posseses an upside for many associated with the grouped community bank’s customers—they may regain workers who had previously been lured away by oil bucks. “We have actually lots of companies that will be happy to own some truck motorists along with other workers straight right back,” claims Vance Jones, the bank’s professional vice president of financing. “We can probably take in all those individuals back to the area economy.”

However, the fall in oil rates may impact loan company in 2015, Cox adds. He expects no growth that is significant amount when it comes to 12 months.

Successful community that is medical to your medical community had been one part of success for Texas State Bank in 2014. San Angelo houses Shannon clinic and San Angelo Community clinic, which together use significantly more than 3,000 individuals.

“The medical community likes the flexibleness a residential district bank can offer,” Cox says. “We don’t have actually a guide of directions which was stated in Ca or New York or someplace that claims this is the way we repeat this sorts of loan.”

Cox claims Texas State Bank’s proceeded success is dependant on regional control and attention that is personal. The lender includes a full-service trust department that serves clients deemed too little by bigger banking institutions, and its particular financing division can pull the trigger quickly. “We understand we must include value with this solution, and fast response is one good way to do this,” Cox claims.

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