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 dependant on regional control and attention that is personal.

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 running on Goodfellow Air Force Base, Angelo State University, two hospitals that are major 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 of the positives of San Angelo is that it offers maybe maybe maybe not been a growth or environment that is bust” states Gary Cox, president associated with $260 million-asset community bank. “It’s always kind of steady.”

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

Oil isn’t always king

Cox records that the oil industry, while pouring money in to the community during happy times, will not hold sway in San Angelo enjoy it does in certain other Texas communities. “When oil rates were high, the businesses drilling and leases that are acquiring tossing serious cash around,” he states. “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 actually fallen in present months, task through the oil industry has declined. But Texas State Bank has brought the slowdown in stride. “Our lending visibility related to the oil industry is not tremendous, therefore we’re not losing sleep on it having a long-lasting affect our model,” he claims.

In reality, a slowdown within the oil company posseses an upside for many of this grouped community bank’s customers—they may regain workers who had previously been lured away by oil bucks. “We have actually a quantity of companies that will be happy to possess some vehicle motorists as well as other workers right right right back,” says Vance Jones, the bank’s administrator vice president of lending. “We can probably soak up all those people back to your local economy.”

Nonetheless, the slip in oil costs may influence loan company in 2015, Cox adds. He expects no significant development in amount when it comes to year.

Successful medical community Lending to your medical community had been one part of success for Texas State Bank in 2014. San Angelo hosts Shannon infirmary and San Angelo Community clinic, which together use significantly more than 3,000 people.

“The medical community likes the flexibleness a residential district bank can offer,” Cox claims. “We don’t have actually a guide of directions that has been stated in Ca or ny or someplace that claims this is one way we repeat this variety of loan.”

Cox claims Texas State Bank’s proceeded success is dependent on regional control and individual attention. The financial institution includes a full-service trust department that serves clients deemed too little by bigger banking institutions, and its own financing division can pull the trigger quickly. “We understand we must include value with your solution, and response that is quick one good way to do this,” Cox claims.