BBVA Compass to Acquire Failed Guaranty Bank

BBVA Compass originated $773 million in single-family loans in the second quarter and its acquisition of the failed Guaranty Bank, Austin, Texas, will expand the retail mortgage lender's branch network in Texas and California. "The acquisition creates the 15th largest U.S. commercial bank with approximately $49 billion in deposits in seven high growth states in the Sunbelt, include Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico," according to BBVA, a global banking company based in Madrid. Compass Bank, based in Birmingham, Ala., gains 300,000 new customers through its deal with the Federal Deposit Insurance Corp. along with 103 branches in Texas and 59 branches in California. Compass now has 411 branches in Texas and 84 branches in California. Guaranty Bank exited the residential mortgage market several years ago to focus on commercial real estate and construction lending.