Strengthening Investments in Current Territory by Citizens
Citizens Bank Expands Presence in Southeast Texas
Citizens Bank, headquartered in Providence, Rhode Island, is set to strengthen its presence in East and Southeast Texas with the acquisition of Texas National Bancorporation, a Jacksonville-based regional bank. This strategic move, expected to be completed by late 2026, will result in a combined entity with approximately 20 banking offices and combined assets exceeding $1 billion.
Nuno Dos Santos, the head of Citizens' retail branch network, explains that the merger aims to grow Citizens Bank's local community banking footprint while maintaining East Texas local ownership and a customer-centric culture. The merged bank will focus on investing in modern technology and customer services, positioning itself as a strong regional player in the area.
In contrast, competitors like Fifth Third, Huntington, and PNC tend to have broader regional or national strategies, often involving large-scale mergers, acquisitions, and extensive branch networks beyond community banking. However, the specific strategies of these competitors in Southeast Texas aren't currently available. Citizens Bank's approach is notably community-focused, with a deliberate expansion through partnership with a regional bank sharing similar local values and operational culture.
Meanwhile, Citizens Bank has been making strides in other markets. The bank has recently expanded into New York City, the mid-Atlantic, and South Florida, and it has been strategic about marketing in the competitive New York market. Citizens Bank supports and sponsors local events like the New York City Marathon and open-air markets to foster organic ties in the community. The bank's branches are being redesigned to focus more on space for banker conversations with clients.
Citizens Bank's strategies for community engagement, such as supporting local events, can be applied across different markets. After a renovation, a branch typically closes for 60 to 90 days and is given an interior and exterior "facelift." Since 2016, Citizens Bank has transformed 40% of its legacy footprint, excluding newly acquired branches, and built 30 new branches. New branches are planned in Massachusetts, Florida, New York, and Pennsylvania.
Despite its expansion, Citizens Bank sees more opportunity for growth in existing markets rather than entering new ones. The bank's focus is now on reinvesting in its existing network. After selling $1.9 billion of "non-core" student loans, Citizens Bank aims to grow its deposits in the New York metro area, where they have about 174 branches. The bank's deposits in the New York metro area grew about 10% from June 2023 to June 2024 after entering the market three years ago.
The approach to resonating with a new market, including hiring talent that connects to the community, varies from market to market. In New York, Citizens Bank has been thoughtful and strategic about building talent that can connect to the communities. Citizens Bank also has about 140 branches across Michigan and Ohio.
In summary, Citizens Bank's expansion strategy in the Southeast region is focused on growing its local community banking footprint, as demonstrated by its acquisition of Texas National Bancorporation. The bank's approach to community engagement, such as supporting local events, can be applied across different markets. Citizens Bank sees more opportunity for growth in existing markets rather than entering new ones, as it focuses on reinvesting in its existing network.
Citizens Bank, in its expansion strategy, aims to grow its local community banking footprint in Southeast Texas, as shown by its acquisition of Texas National Bancorporation. To achieve this, the bank will invest in modern technology and customer services.
After the acquisition, the bank will focus on strengthening its relationships within the community by supporting local events and fostering organic ties, just as they have done in markets like New York City. This approach to community engagement can be applied across different markets, showcasing Citizens Bank's commitment to local business.
