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Texas Bank Growth Needs to be Wrangled

Stocks in this article: BAC WFC CMA CFR PB ZION

According to the Journal report, Bank of America would consider selling its Texas branches, along with its U.S Trust wealth management subsidiary, it the company were forced to raise capital "in a market shock or severe economic downturn."

Wells Fargo Bank, NA -- held by Wells Fargo (WFC) is in third place for Texas Deposits, with a 9% share as of June 30, 2011, declining slightly from a year earlier. Wells Fargo has another subsidiary -- Wells Fargo Bank South Central, NA -- with a 3% Texas deposit market share as of June 30, 2011.

The bank headquartered in Texas with the largest deposit market share is fourth-place USAA Federal Savings Bank, with an 8% share as of June 30, 2011, increasing from 7% a year earlier.

Here are the 10 largest banks headquartered in Texas, along with key metrics as of Dec. 30:

The largest Texas bank is Comerica Bank of Dallas, which is the main subsidiary of Comerica, with $61 billion in total assets as of Dec 30. The bank's fourth-quarter return on average assets (ROA) was 0.86%, and its earnings performance has been steady over the past year, with ROA ranging from 0.74% to 0.89% over the past five quarters.

The holding company relocated to Dallas from Detroit in August 2007, and as of Dec. 31 218 of the company's 494 branches were located in Michigan, while 142 were in Texas.

Comerica was in 11th place in its new home market, with a 1.2% deposit market share as of June 30, 2011. The company in July of last year acquired Sterling Bancshares of Houston, in a stock deal valued at $803 million. Sterling Bank had a 16th place market share in Texas as of June 30, 2011, with $4.2 billion in deposits, for a 0.8% share.

Comerica's shares closed at $29.45 Tuesday, returning 14% year-to-date, following a 38% decline in 2011. The shares trade for just under tangible book value, according to HighlineFI, and for 13 times the consensus 2012 earnings estimate of $2.31, among analysts polled by Thomson Reuters. The 2013 consensus EPS estimate is $2.61.

Interested in more on Comerica? See TheStreet Ratings' report card for this stock.

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