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Texas Banks See Healthy Loan Growth: Commercial Banks Grow C&I and CRE Successfully and Consumer-Focused Banks See Boost in Their Consumer Books

67 WALL STREET, New York - March 4, 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: First Financial Bankshares Inc (FFIN), Viewpoint Financial Group (VPFG), Texas Capital BancShares Inc. (TCBI), Cullen/Frost Bankers, Inc. (CFR), Southside Bancshares Inc. (SBSI) 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: In terms of the loan growth, where are they finding the most success? Are we talking residential mortgage or commercial real estate or other kinds of commercial lending?

Mr. Gailey: It differs bank by bank. I'd say it's a good mix. Some of the larger Texas banks are growing out their mortgage warehouse lending product. Texas Capital (TCBI) and ViewPoint both have had a lot of success in growing out their mortgage warehouse.

There are commercial banks like Cullen/Frost (CFR) and Texas Capital that have been growing C&I and CRE successfully. There have also been more consumer-focused banks like Southside (SBSI) and First Financial that have had success growing their consumer books, so I'd say it's healthy pretty much across the board.

TWST: What about regulatory issues facing the group? How are they handling those?

Mr. Gailey: I don't think Texas is very different than the rest of the nation when it comes to regulatory issues. I think regulators are more comfortable with the Texas banks due to their continued strength and profitability. But when it comes to certain things that are coming from Washington - new compliance issues and new ways of running your business and new restrictions on fee income - Texas is right there with everybody else.

With that in mind, a lot of the Texas banks do have more excess capital than others, so you do not have any sort of capital pressure on the Texas banks like you would, say, for some more troubled Southeastern banks. Even with the new Basel III capital thresholds, most of the Texas banks are well in excess of that already, so there are no capital issues...

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.