Everything’s bigger (and better) in Texas including the stability of our banks. In a report released by advisory firm Sheshunoff & Co. Investment Banking, Texas banks outperformed most of the country during the first half of the year with additional data suggesting that Texas will do the same for the last half of the year as well. The report credits Texas’s strong economy and inflow of new residents from other states in part, due to our stronger job economy.
Banks in rural areas have also been able to keep their heads above water by making smart agricultural loans due to the high price of farm commodities. Furthermore, Texas banks learned a few hard lessons twenty years ago when there was a near epidemic of bank closings. The lessons about strict underwriting and credit valuations have stuck with many Texas banks which has put them well ahead of the curve in comparison with many other banks across the nation.
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