Texas Banks in Better Position Than Most U.S. Community Banks: Strong Texas Economy Never Fell Into the Depths of Financial Crisis Like Coastal Regions

Wall Street Transcript

67 WALL STREET, New York - March 6, 2013 - The Wall Street Transcript has just published its Pacific and Southwest Banks Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Heightened M&A Activity - Regulatory Obstacles and Fee Income Replacement - Interest Rates and Loan-Growth Strategies - Pockets of Growth in Western Banking - Regulatory Outlook Gains Clarity

Companies include: Texas Capital BancShares Inc. (TCBI), Viewpoint Financial Group (VPFG) and many more.

In the following excerpt from the Pacific and Southwest Banks Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Today we'll focus on the Texas names in your current coverage universe. What's your overall sentiment on the Texas banks right now and why?

Mr. Milsaps: I think generally the economy in Texas continues to be relatively strong compared with the rest of the country. Certainly, it never fell into the depths of the crisis like the coastal regions; the West Coast and certainly here where I live in the Southeast.

I think several things continue to be in play: relatively inexpensive housing; a state government that's very probusiness in terms of no state income tax, which can be attractive to other businesses that want to relocate to the state; and then finally the influence of energy in Texas.

TWST: Is credit quality faring well in the region then?

Mr. Milsaps: It never got really bad. There was maybe one large bank failure in Texas that comes to mind; however, most of that bank's problems were because they were making loans outside the state of Texas - making construction and land development loans in the state of California, in Arizona and Nevada, places in the Southeast, Florida - that's where it really got into trouble. The core Texas book remained strong, and really asset quality for the banks in Texas today is not an issue at all.

TWST: Where are the banks experiencing growth today? How is loan growth trending?

Mr. Milsaps: Loan growth for banks in Texas continues to be as good as or better than the average community bank in the U.S. It's still driven a fair amount by market share gains. Most of the publicly traded banks that are domiciled in Texas still...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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