Texas State Bankshares, Inc., the holding company behind Texas Regional Bank (TRB), has recently announced a definitive agreement to acquire Estrada Hinojosa & Company, Inc., a Dallas-based investment banking group. The acquisition is contingent upon securing all required regulatory and shareholder approvals.
With Estrada Hinojosa’s expertise added to Texas Regional Bank’s resources, the collective entity can offer a comprehensive suite of financial solutions tailored to public entities of varying sizes. (Photo: Marek Bros)
Texas Regional Bank Acquires Dallas-Based Investment Group
Headquartered in Harlingen, Texas, Texas Regional Bank’s strategic move to acquire Estrada Hinojosa marks a significant step in expanding its reach and capabilities. The acquisition will bring under Texas Regional Bank’s umbrella a talented team of 48 professionals and extend its presence to key locations including Dallas, Houston, San Antonio, Austin, Edinburg, Miami, Chicago, and New York.
According to a published article, this expansion is poised to complement Texas Regional Bank’s existing 30 banking center locations in various regions across Texas.
According to Michael Scaief, Chairman and CEO of TRB, this partnership presents an exciting opportunity for the bank to venture into capital markets both within Texas and beyond. Scaife highlighted, “This is an exciting and well-matched partnership that will expand our services to capital markets and further complement our commercial banking franchise.”
One of the key outcomes of this acquisition is the broadened scope of financial solutions. With Estrada Hinojosa’s expertise added to Texas Regional Bank’s resources, the collective entity can offer a comprehensive suite of financial solutions tailored to public entities of varying sizes.
Estrada Hinojosa & Company was founded in 1992 and has risen to prominence as a leader in public finance, specializing in municipal advisory and bond underwriting services. The company’s exceptional performance has been recognized, with Refinitiv, a third-party industry statistics provider, ranking Estrada Hinojosa as the No. 1 municipal advisor in Texas and the No. 4 nationally during the first half of 2023.
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Significance of Texas Regional Bank’s Acquisition
Founder and CEO of Estrada Hinojosa, Noe Hinojosa, Jr., underlined the significance of the acquisition by Texas Regional Bank. He emphasized that the combined strength of Texas Regional Bank’s capital and the experienced team at Estrada Hinojosa positions them well to serve issuers in Texas and nationwide across various sectors, including education, infrastructure, and public facilities.
Hinojosa expressed his optimism about the partnership, noting that the increased access to capital and resources through Texas Regional Bank will enable their team to further elevate the business and expand their market presence.
As the deal concludes, Hinojosa will take on the role of President of the Capital Markets Division of Texas Regional Bank, becoming a member of the Texas Regional Bank executive committee, a Texas Regional Bank shareholder, and a member of Texas Regional Bank’s board of directors.
The transaction, subject to regulatory and shareholder approvals, is projected to be finalized by the fourth quarter of 2023. The acquisition of Texas Regional Bank not only signifies a significant development in the financial landscape of Texas but also reflects the alignment of core values and a shared commitment to community growth and reinvestment by both entities.
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