Spain's BBVA buys troubled Texan Guaranty Bank

24th August 2009, Comments 0 comments

The takeover would bring in 300,000 additional customers and strengthen BBVA's position as the fourth biggest bank in Texas.

Madrid - 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 USD 49 billion 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 USD 11.5 billion 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.

AFP / Expatica

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