On August 7, Texas State Bankshares Inc., the holding company for Harlingen-based Texas Regional Bank (TRB), announced that it has entered into a definitive agreement to acquire Dallas-based investment banking group Estrada Hinojosa & Co. Inc. The acquisition will add a team of 48 individuals—as well as offices in Dallas, Houston, San Antonio, Austin, Edinburg, Miami, Chicago and New York—to Texas Regional Bank’s 30 branches in four regions across Texas. With the transaction, which is expected to close in the fourth quarter of 2023, the South Texas bank expands into capital markets in Texas and beyond.
“This is an exciting and well-matched partnership that will expand our services to capital markets and further complement our commercial banking franchise,” says Michael Scaief, chairman and CEO of Texas Regional Bank. “With the addition of Estrada Hinojosa and the capital of TRB, we can offer a full suite of financial solutions to public entities of all sizes.”
Established in 1992, Estrada Hinojosa is an investment banking group specializing in public finance. It was recently ranked by Refinitiv, a third-party industry statistician, as both the No. 1 municipal advisor in Texas and No. 4 municipal advisor in the nation for the first half of 2023. Estrada Hinojosa offers municipal advisory services, bond underwriting and bond trading. Since its inception, the firm has completed more than 2,500 municipal advisory transactions with a total par value exceeding $190 billion and more than 4,600 underwriting transactions with a total par value of over $460 billion.
“Entering into a definitive agreement with TRB provides Estrada Hinojosa with access to more capital and resources than ever before, allowing our talented team members to grow the business and take the organization to the next level,” says Noe Hinojosa Jr., chairman, president and CEO of Estrada Hinojosa. “The combination of TRB capital and our team’s significant years of experience in public finance will enable us to gain market share in municipal advisory, underwriting, and trading in Texas and across the nation.”
Upon completion of the acquisition, Hinojosa will become president of the capital markets division, a member of the Texas Regional Bank executive committee, a shareholder of the bank and a member of the bank’s board of directors.
Established in 1987, Texas Regional Bank operates 30 banking centers across the Rio Grande Valley, Texas Hill Country, Houston and Dallas/Fort Worth metroplex.
