“How can Texas banks grow faster?” Sometimes, it might take a conference of the top decision makers to “brainstorm” the possibilities. NexBank CEO & President John Holt was a panelist for a community bank group of the Texas Bankers Association 5th Strategic Opportunities M&A Conference in New Orleans, Louisiana, which took place between November 6 and 8, 2016.
Organic growth, technological innovations and M&A were the primary growth vehicles, according to the conference. While organic growth might be both the most cost-effective and deliver the best return on investment (ROI), it might be tough to accomplish. Some bankers simply run out of ideas.
A good example of acquisitions was the 2015 NexBank purchase of College Savings Bank. NexBank had already gained mastery of mortgage banking and commercial banking. With College Savings Bank, Nexbank could add student loans. College Savings Bank had positioned itself as an educational loan leader as a ‘program manager for the “Indiana CollegeChoice CD 529 Savings Plan” and “Arizona Family College Savings Program–Bank Plan.’ This acquisition also allowed NexBank to expand to different regions.
“Versatile NexBank Product Mix”
Institutional investors might want to add student loans to their portfolios. With the North Texas mortgage market being so robust in 2016, this sector will be less risky. Student loans could be more risky and offer a higher payout for NexBank clients.
By discussing the most important industry concerns together, the Texas bankers can fine-tune their own development strategies. They also get to know another, which could make future mergers and acquisitions easier.
All banks want to grow. Mergers and acquisitions may be the most expensive path for development, but sometimes it is necessary. It can provide a “ready-made” managerial, product list and regional network, worth its “price in gold.”