Friday, May 27 2022

Nine years after Broadway Bank expanded the Interstate 35 corridor in Austin, the bank of San Antonio has set its sights even further north.

Broadway is considering expansion into the Dallas-Fort Worth market, the bank confirmed Thursday.

The bank reported $5.2 billion in assets late last year, around the time it promoted Steve York to head of new market integration. He will lead efforts “to establish Broadway Bank’s presence” beyond its current markets, he said in a statement.

Broadway has 36 branches, including 21 in San Antonio where the bank got its start 81 years ago. It also operates in Comal, Gillespie, Guadalupe, Hays, Kendall, Kerr, Medina and Travis counties. Its most recent branch opening was in April 2013 on West 38th Street in Austin, the Federal Deposit Insurance Corp website says.

As part of its current expansion plans, Broadway announced on Monday the addition of three members to the board, including the grandson of the bank’s founders.

In a filing with the Securities and Exchange Commission on Tuesday, the Broadway holding company disclosed that it had issued $50 million of subordinated debt in a private placement.

“Over the past year, through the successful offering of relationship services in San Antonio, Austin and surrounding markets, Broadway has grown its assets by 9.5%,” said Broadway Chairman David Bohne, in an emailed statement.

“As we continue to execute our strategy and grow, we will use the proceeds from this subordinated debt placement to support the bank’s general operations and wealth management services in our home markets and in our latest announced entry. in the Dallas market,” he said. mentioned.

A measure of the bank’s financial strength shows it was well capitalized at the end of 2021.

Nearly three years ago, San Antonio-based Vantage Bank Texas, with about $3.1 billion in assets, expanded to Fort Worth. There are now two branches, the FDIC website says.

Curtis Carpenter, Austin-based senior managing director for Hovde Group, a mergers and acquisitions advisory group for the banking industry, liked Vantage’s decision to expand then and is now optimistic about Broadway’s prospects in North America. the state.

“There is so much economic growth in the Dallas-Fort Worth area that it makes sense to put sites and personnel there to take advantage of it,” he said.

Carpenter added that there are many similarities in the business cultures of Fort Worth and San Antonio.

“Both of these communities tend to prefer doing business with people they know,” he said. “It’s very relationship-oriented, and Broadway excels in that kind of market. And so I think it suits them very well.

Additionally, he said, there has been a decrease in the number of “community-type banks” in Fort Worth, so this presents an opportunity for Broadway.

Broadway ranks 34th among banks operating in the state based on assets, the Texas Department of Banking reported.

The bank had about 600 employees at the end of last year.

Broadway had nearly $2.5 billion in loans and nearly $4.7 billion in deposits at the end of 2021. Like many banks, it has struggled with increased deposits over the past two years.

The bank earned $52.6 million on $176.4 million in revenue last year. By comparison, it generated $37.7 million in net income on $167.6 million in revenue in 2020.

On Monday, Broadway said Rick Timmins had become its chairman of the board. He is president of the Austin Central Texas investment company Angel Network and has served on Broadway’s board of directors since 2017. He replaced David Ladensohn, who remains a director.

Charles “Charlie” Cheever III – grandson of Broadway founders Col. Charles E. Cheever and his wife, Elizabeth “Betty” Cheever – was one of three people to recently join the board of directors of the bank. He is Managing Partner and Co-Chief Investment Officer of Corsair Partners, based in New York.

Hitesh “Hi” Leva, chief revenue officer of San Antonio-based educational technology company Enflux, and Julia R. Reinhart, chief human resources officer of Valero Energy Corp.

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