The Texas economy has remained relatively
strong over the past several years. Before the
1980s, Texas’ major economic engine was
the oil industry with tentacles that spread
throughout the state. The downturn of this
sector in the 1980s hit the state hard and
contributed to the collapse of the real estate
and banking industries. These events resulted
in a proactive program by the state of Texas
and its cities to attract businesses that
represented economic diversification that has
set the table for the state to remain strong,
even in the face of economic decline in other
parts of the country.
The strategy to develop Capitol Bancorp
Limited in Texas mirrors the macro strategy
of Capitol Bancorp and the state of Texas
to achieve a balanced, strong portfolio
through geographic diversification. As the
state recovered from the problems of the
1980s, each population hub developed its
own economic drivers taking advantage
of geographic location as well as human
and natural resources. Dallas, Houston, San
Antonio and Austin each have their own set of
economic drivers.
As we continue to develop the Texas market,
careful attention will be paid to diversifying
geographically to take advantage of the
strengths of each market and to fill the voids
created by bank consolidations.