BBVA Compass, a subsidiary of Compass Bancshares, a wholly owned subsidiary of BBVA, has acquired the banking operations of Texas-based Guaranty Bank, from the Federal Deposit Insurance Corporation (FDIC), effective immediately.
BBVA Compass acquired $12 billion of assets and assumed $11.5 billion of deposits and entered into a loss sharing agreement with the FDIC that covers all of the acquired loans, where the FDIC will bear 80% of the first $2.3 billion of losses and 95% of the losses above that threshold. Guaranty Bank operated 105 branches in Texas and 59 branches in California.
The acquisition is expected to be approximately $49 billion in deposits and operations in seven markets in the Sunbelt including Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico.
The bank has said that it will maintain regulatory capital ratios at a level which exceeds ‘well-capitalized’ guidelines, and the impact to BBVA’s capital ratios will be immaterial.
Depositors will continue to be insured as prescribed by FDIC guidelines. The depositors can also access their money by writing checks or by using their debit card. In addition to accessing Guaranty ATMs, depositors will also be able to make cash withdrawals at any BBVA Compass.
Jose Maria Garcia Meyer, BBVA country manager-US and chairman of BBVA Compass, said: “The increase in our branch distribution network further strengthens our retail banking unit while also providing benefits to our other business lines including corporate banking, commercial banking, insurance and wealth management groups.”
Manolo Sanchez, president and CEO of BBVA Compass, said: “We would like to welcome Guaranty’s 300,000 customers to the BBVA Compass family. Our number one priority together is a seamless experience for Guaranty customers, continuing to deliver personalized service by local bankers and ensuring that it is business as usual with no interruption in service.We expect to integrate Guaranty to our operating systems and product platforms early in 2010, if not before. At that time, Guaranty customers will be able to take advantage of a larger branch network while enjoying access to a broader array of innovative banking, insurance and investment products and services.”
