College Station Bank Boom

reineraggie09

Joined: Feb 23, 2007

Posts: 6,983

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9:25a, 3/15/23

AG

My wife and I have noticed for several months that there seems to be a banking explosion in college station. Seems like every new building especially along 6 is a new bank. Off the top of my head, First Financial, Extracto are currently under construction. Vera opened not that long ago. Just seems like there are a lot of banks being opening in B/CS. Seems like a faster increase in banking capacity compared to population growth, especially when the kids like to bank entirely online.

Any idea why?

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aggiepaintrain

Joined: Sep 27, 2004

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10:35a, 3/15/23

AG

B/CS is a destination retirement community for Aggies and there are a lot of them. They need trust services, etc.

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techno-ag

Joined: Mar 12, 2010

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11:10a, 3/15/23

AG

The demographics are conducive to sales. Open branches and gain accounts is a time honored way to grow and look attractive to a buyer. That's one reason. First Financial bought out their local branches that way. Prosperity bought Franklin after bankruptcy which previously had bought out First National Bryan. Finally, Mr. Adam made his fortune doing this and after the non compete period was up he started Momentum Bank in BCS.

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agnerd

Joined: Jan 4, 2012

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11:20a, 3/15/23

AG

FDIC limit is $250,000. If you want to keep $1 million in the bank, you need 4 banks to do that. Not a lot of individuals keep that much on hand, but a lot of companies do for payroll, expenses, etc.

cgh1999

Joined: Nov 8, 2000

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11:23a, 3/15/23

AG

For the last decade or so, "branch light" banks were the hot trend. Deposits were easy to get through wholesale channels - mainly because the fed was pumping Trillions of cash into the economy.

Banks are waking up and realizing that core banking is critical to safety and value. Growing markets like B/CS are very attractive. Also - they can get some college kids to open accounts and hopefully keep them after they move on and make real money.

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