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 founded on regional control and individual attention.

Diversity Plugs Oil Influence in West Texas

Variety assists in maintaining an economy healthier, and San Angelo, Texas, has it. The economy for the western Texas city is powered by Goodfellow Air Force Base, Angelo State University, two major hospitals, cotton agriculture while the oil industry. Thus it is no real surprise that Texas State Bank, the community that is only chartered in San Angelo, has enjoyed solid development in its financing company. Amount rose 7 % in 2014 and 10 % in 2013.

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

The diversity for the community is mirrored in Texas State Bank’s loan profile: 41 per cent commercial or commercial property, 30 % domestic mortgages, 20 % agricultural, 5 per cent construction and land development, and 4 % customer installment credit.

Oil isn’t always king

Cox notes that the oil industry, while pouring money in to the grouped community during happy times, will not hold sway in San Angelo want it does in certain other Texas communities. “When oil costs had been high, the businesses drilling and leases that are acquiring tossing lots of money around,” he claims. “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 fallen in present months, task through the oil industry has declined. But Texas State Bank has had the slowdown in stride. “Our lending visibility related in to the oil industry will not be tremendous, therefore we’re not losing sleep on it having a long-lasting effect on our model,” he claims.

In reality, a slowdown when you look at the oil business comes with an upside for many for the grouped community bank’s customers—they may regain workers who was simply lured away by oil bucks. “We have actually lots of companies who’ll be happy to own some vehicle motorists as well as other workers right back,” claims Vance Jones, the bank’s professional vice president of financing. “We can probably soak up all of those individuals back in the area economy.”

However, the fall in oil costs may impact loan company in 2015, Cox adds. He expects no significant development in 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 hosts Shannon clinic and San Angelo Community clinic, which together use a lot more than 3,000 individuals.

“The medical community likes the flexibleness a residential area bank can offer,” Cox claims. “We don’t have actually a guide of tips which was manufactured in Ca or ny or someplace that claims this is one way we do that sort of loan.”

Cox states Texas State Bank’s proceeded success is founded on regional control and attention that is personal. The lender features a full-service trust department that serves clients deemed too little by bigger banks, and its particular lending division can pull the trigger quickly. “We understand we have to include value with this solution, and response that is quick one method to accomplish that,” Cox claims.