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.