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August 25, 2004
Citigroup expands Texas presence
In the latest deal reflecting that financial services companies are increasingly pursuing consumer lending, Citigroup Inc. announced that would expand its retail-branch presence into Texas by acquiring closely-held, Bryan-based First American Bank SSB. Terms of the cash deal were not disclosed.
With this deal, Citigroup continues its strategy of increasing its domestic banking business, particularly in fast-growing areas. Inasmuch as Citigroup already owns the Mexican bank Grupo Financiero Banamex SA, the First American deal will also facilitate Citigroup's goal of becoming the key bank for the large Mexican-American community in Texas.
First American has 102 full-service banking facilities across Texas and has been expanding in such key Texas metropolitan areas of Houston, Dallas, and Austin. With $3.5 billion in assets, First American will not have much of a financial impact on Citigroup, which has $1.19 trillion in assets. Nevertheless, the deal may set the stage for other Citigroup acquisitions in Texas. Stayed tuned.
Posted by Tom at August 25, 2004 6:01 AM
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