A Lone Star Banking Perspective

Ron Butler, vice‑chairman of First Financial Bank, outlined how a $14 billion, publicly‑traded Texas‑based institution has balanced acquisition and organic growth. After completing roughly 30 deals over decades, the bank stopped buying banks in 2020 and still added $6 billion in assets through internal expansion. This strategy underscores a community‑banking ethos—prioritizing local decision‑making, trust, and shareholder value while scaling across 80 branches and a $11 billion trust platform. The discussion highlighted how First Financial leverages its historic roots to stay competitive in a state where banking is a cornerstone of economic development.

The episode then shifted to Texas’s hotbed of banking M&A activity. Out‑of‑state players like Fifth Third, Comerica, and Huntington are eyeing the Lone Star market, attracted by its status as the world’s eighth‑largest economy and its diverse, business‑friendly environment. As Texas Bankers Association (TBA) chairman, Butler expressed both optimism and concern: while new entrants can boost competition, they also risk marginalizing rural communities if they overlook smaller markets. He advocated for smoother de‑novo licensing, citing regulatory burdens that deter fresh banks. Recent wins such as the 1071 rule reduction—projected to save the industry $7 billion—alongside ongoing work on deposit‑insurance reform and digital‑currency frameworks illustrate the association’s proactive stance.

Finally, Butler described the Texas Bankers Global Forum in London, a diplomatic effort to showcase Texas’s economic clout and to learn from international peers. The delegation exchanged insights on stablecoins, cyber‑security partnerships with telecoms, and fraud mitigation—areas where the UK leads. By fostering cross‑border dialogue, Texas aims to attract foreign investment, enhance its digital‑currency capabilities, and reinforce its reputation as a global banking player. The conversation closed on a forward‑looking note: continued community focus, regulatory collaboration, and international engagement will shape Texas’s banking future.