Texas Bank Report, November 2017 Page: 4
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1 - 4Corporate
CornerBy Dan Frasier
The Corporate Division is responsible for processing applications and notices for the various entities regulated by the Texas
Department of Banking. The division prepares reports for the Department's governing body, the Finance Commission of Texas.
A sample of the information prepared for those reports is provided below. As depicted in the charts, the Department contin-
ues to see consolidation in the Texas state banking system, which mirrors what is happening with the banking system throughout the
country. What is not readily apparent in the charts is the complexity of banks' operations as their asset size increases.
The complexity of banks affects the application process by requiring additional time, effort, and resources to effectively review and
evaluate applications. Examples of applications with more complex considerations include:
"*Multiple lines of business, such as trust, insurance, mortgage, and securities operations;
" Source of capital from mutual funds, leveraged financing, and complex family limited partnerships and trusts;
" Substantive non-core funding or transactions involving subordinated debt; and
" Banks with multiple affiliate relationships.
Applications & Notices Processed
SBaik ard Trust Related Applications2H203 1-12014 2H2014 1H2015 2H2015 1H2016 2H2015 1H2017
The volume of bank and trust related applications and notices processed in the first half of 2017 remained low. Banking activity has
recovered marginally from the lows noted in the first half of 2016 when oil prices were under pressure. Increases in the federal funds
rate since the end of 2015 is also providing lift to banking activity. The improving interest rate environment is boosting bank profit-
ability which in turn is increasing stock price to book value multiples on acquisitions announced.4 * Texas Bank Report November 2017
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Texas. Department of Banking. Texas Bank Report, November 2017, periodical, November 2017; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1454272/m1/4/: accessed May 30, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.