Background: The savings bank was a failed Texas thrift that had been acquired by a private equity group from the
Federal Home Loan Bank. It still retained a large number of troubled assets for which it was receiving FDIC assistance, but had little ability to
originate new assets.
Solution: By pursuing acquisitions of troubled thrifts in Texas, the bank developed a strategy to acquire whole loans
and then generate self-originated loans. The company also acquired a large national mortgage originator.
Result: Staffed and rebuilt, the Texas Thrift grew from $3.5 billion in assets, 19 branches, and 500 employees
to $5 billion in assets, 50 branches, 47 mortgage origination offices in 16 states, and 1500 employees, while remaining within stringent staff
and expense constraints.
