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BANKING

Spain's BBVA buys troubled Texan Guaranty Bank

Text by: NEWS WIRES
1 min

Spain's second largest bank, BBVA has acquired the troubled Texas-based Guaranty Bank for an undisclosed sum, and will operate in seven southern US states BBVA, which owns four other US banks, focuses on America's Spanish-speaking minority.

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AFP - Spain's second largest bank, BBVA, said Saturday one of its US subsidiaries had acquired the ailing Texas-based Guaranty Bank for an undisclosed sum.

A statement said the takeover by BBVA Compass "creates the 15th largest US commercial bank operating in seven Sunbelt states with approximately 49 billion dollars in total deposits and more than 750 branches."

The "highly attractive, strategic transaction" would bring in 300,000 additional customers and strengthen BBVA's position as the fourth biggest bank in Texas, increasing deposit market share from 4.9 percent to 6.4 percent.

In addition the deal "further extends general banking business into the attractive, high-growth California market," where Guaranty has 59 branches.

BBVA Compass acquired the banking operations of Guaranty Bank based in Austin, Texas from the Federal Deposit Insurance Corporation (FDIC).

It takes over 12 billion dollars (8.4 billion euros) of assets and 11.5 billion dollars of deposits and concluded a loss-sharing agreement with the FDIC.

BBVA owns four other US banks, including Compass Bancshares which it took over in 2007. It concentrates on customers from the nation's Spanish-speaking minority.

 

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