Texas National Bank is buying a small bank along the U.S.-Mexico border

The holding company of McAllen-based Texas National Bank is acquiring Zapata National Bank, the company recently announced. 

TNB Bancshares Inc. is buying Zapata Bancshares Inc.; the deal value was not disclosed. 

Zapata National Bank was established in 1961 and has grown to more than $83 million in total assets.

Zapata National Bank had 19 employees while Texas National Bank had 196 workers as of March 31, records show. 

Zapata National Bank had $69.6 million in deposits, about $356,000 in net income, and nearly $5 million of commercial and industrial loans on the books as of March 31. 

Texas National Bank had $1 billion in deposits, $3.3 million in net income, and $124.2 million of commercial and industrial loans underwritten as of March 31. 

The acquisition would bring Texas National Bank to $1.3 billion in assets and 13 branches across Hidalgo, Cameron, Starr, and Zapata counties. 

The move enables Texas National Bank to expand its customer base for both residential and commercial clients into Starr and Zapata counties, where the bank was most active. 

“We are excited to welcome Zapata National Bank’s employees and clients to Texas National Bank as we continue to expand our commitment to the communities we serve into Zapata County,” Joe Quiroga, president of Texas National Bank, said in a news release. 

Texas National Bank expects to move into a new $30 million headquarters building in McAllen near the intersection of North 10th Street and Robin Street soon. 

“As the banking landscape continues to evolve, joining Texas National Bank positions us to deliver even greater value while preserving the relationships that define who we are. Texas National Bank shares our values and dedication to community banking,” said Jose Ramirez III, the CEO of Zapata National Bank. 

The deal was agreed upon unanimously by both banks’ boards of directors. It is expected to close by the end of June, subject to regulatory approvals.