Lake Houston Sentinel - News
Crosby State Bank merges with Community Bank of Texas
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By JOSH HARDWICK
While financial giants such as Fannie Mae, Freddie Mac, Washington Mutual and now Wachovia struggle under the weight of billions of dollars in subprime mortgages and bad loans, smaller local banks seem to be flourishing in these harsh economic times.
Two such institutions, CommunityBank of Texas and Crosby State Bank, have announced plans to merge, forming a new banking company with assets of nearly $1 billion.
A definitive agreement was reached between CommunityBank CEO J. Pat Parsons and Crosby State bank CEO Mark Mulloy Sept. 19 approving the merger, pending shareholder approval.
Crosby Bancshares is the holding company and 100 percent owner of Crosby State Bank, a state chartered, independent community bank headquartered in Crosby, with assets in excess of $354 million.
The bank has been in business since 1913, employs 102 people, and currently has eight branches that include two in Crosby, two in Baytown and single branches in North Shore, Humble and the Sheldon and Memorial areas of Houston.
Parsons has served as CEO of CommunityBank of Texas since the bank officially opened Aug. 1, 2007, after acquiring County Bank and its seven branches in Newton and Orange Counties.
Since that time, the bank has expanded its branch network to include 14 branches throughout Southeast Texas including Beaumont, Lumberton and Woodville.
CommunityBank of Texas is the only locally owned, independent bank serving the entire Southeast Texas region. The bank currently has 154 employees and assets approaching $640 million.
“This merger is a natural fit with our vision of bringing responsive, local banking to businesses and individuals in the communities where they live,” said Parsons.
“CommunityBank of Texas and Crosby State Bank share many of the same core business values and commitment to highly personalized service, but now customers will have access to a greater depth of resources for personal and commercial banking.”
Parsons said that once the merger is approved, the current management team of Crosby State Bank will remain in charge of the new institution’s Harris County branches, while Mulloy will join CommunityBank’s Board of Directors.
Both banks have been on sound financial footing amidst the credit crunch that plagues much of the nation.
With $80 million in investor contributions, CommunityBank got its start after purchasing County Bancshares, Inc., a seven-branch bank based in East Texas in 2007.
Since then an additional $40 million has been pooled to expand the bank to its current portfolio of 14 branches.
Meanwhile Crosby State Bank has managed to sidestep the lending collapse by staying on the right side of its loan-to-deposit ratio.
While that ratio for banks in the Houston metropolitan area is about 95 percent, Crosby State Bank is much lower – around 53 percent – meaning that it has considerably more money to lend than it is owed.
Mulloy said he was very pleased with the deal and that the two banks’ portfolios compliment each other almost perfectly.
“Other banks had taken a run at us in the past, but it was hard to find the right fit,” he said. “CommunityBank wanted a bank in Houston with a certain type of profile. We get to stay involved and keep all the people who got us from point A to point B.”
“We look forward to working with Mark and the management team of Crosby State Bank. Their local knowledge of these markets and solid relationships with the customers who live there will ensure a seamless transition,” said Parsons.
For more information about CommunityBank of Texas, visit www.communitybankoftx.com.
Information about Crosby State Bank can be found at www.crosbybank.com
Two such institutions, CommunityBank of Texas and Crosby State Bank, have announced plans to merge, forming a new banking company with assets of nearly $1 billion.
A definitive agreement was reached between CommunityBank CEO J. Pat Parsons and Crosby State bank CEO Mark Mulloy Sept. 19 approving the merger, pending shareholder approval.
Crosby Bancshares is the holding company and 100 percent owner of Crosby State Bank, a state chartered, independent community bank headquartered in Crosby, with assets in excess of $354 million.
The bank has been in business since 1913, employs 102 people, and currently has eight branches that include two in Crosby, two in Baytown and single branches in North Shore, Humble and the Sheldon and Memorial areas of Houston.
Parsons has served as CEO of CommunityBank of Texas since the bank officially opened Aug. 1, 2007, after acquiring County Bank and its seven branches in Newton and Orange Counties.
Since that time, the bank has expanded its branch network to include 14 branches throughout Southeast Texas including Beaumont, Lumberton and Woodville.
CommunityBank of Texas is the only locally owned, independent bank serving the entire Southeast Texas region. The bank currently has 154 employees and assets approaching $640 million.
“This merger is a natural fit with our vision of bringing responsive, local banking to businesses and individuals in the communities where they live,” said Parsons.
“CommunityBank of Texas and Crosby State Bank share many of the same core business values and commitment to highly personalized service, but now customers will have access to a greater depth of resources for personal and commercial banking.”
Parsons said that once the merger is approved, the current management team of Crosby State Bank will remain in charge of the new institution’s Harris County branches, while Mulloy will join CommunityBank’s Board of Directors.
Both banks have been on sound financial footing amidst the credit crunch that plagues much of the nation.
With $80 million in investor contributions, CommunityBank got its start after purchasing County Bancshares, Inc., a seven-branch bank based in East Texas in 2007.
Since then an additional $40 million has been pooled to expand the bank to its current portfolio of 14 branches.
Meanwhile Crosby State Bank has managed to sidestep the lending collapse by staying on the right side of its loan-to-deposit ratio.
While that ratio for banks in the Houston metropolitan area is about 95 percent, Crosby State Bank is much lower – around 53 percent – meaning that it has considerably more money to lend than it is owed.
Mulloy said he was very pleased with the deal and that the two banks’ portfolios compliment each other almost perfectly.
“Other banks had taken a run at us in the past, but it was hard to find the right fit,” he said. “CommunityBank wanted a bank in Houston with a certain type of profile. We get to stay involved and keep all the people who got us from point A to point B.”
“We look forward to working with Mark and the management team of Crosby State Bank. Their local knowledge of these markets and solid relationships with the customers who live there will ensure a seamless transition,” said Parsons.
For more information about CommunityBank of Texas, visit www.communitybankoftx.com.
Information about Crosby State Bank can be found at www.crosbybank.com
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