Danny Schroder, Chairman – Greater Houston Region, PlainsCapital Bank
The Houston market is a key focus for PlainsCapital Bank’s growth strategy. “Houston is a key growth market for PlainsCapital Bank in 2025, and you couldn’t pick a better market,” said Danny Schroder, bank chairman for the Greater Houston region. In an interview with Invest: Houston, Schroder also provided an overview of the banking landscape in the region as well as challenges facing the sector.
What were the most significant changes, milestones, or highlights for PlainsCapital Bank in Houston over the last year?
The main highlight for us was the addition of four bankers who joined us. We were able to bring a full team on board, and they have just been a terrific addition to PlainsCapital Bank. We look forward to big things out of them in 2025. That was the most exciting thing that we did.
We also saw growth specifically in the real estate market. We did several multifamily transactions, and real estate continues to be a focus for PlainsCapital Bank. We think real estate is going to continue to be a focus for the bank. In addition, we did see some nice business from the commercial and industrial space.
What makes Houston an ideal location for PlainsCapital?
Houston is a key growth market for PlainsCapital Bank in 2025. We are focused on expanding in all of the areas we serve, but Houston offers the greatest opportunity for growth. And you couldn’t pick a better market. We continue to see significant net migration into Houston from other parts of the country, and that is certainly going to spur real estate development and growth in that sector. Houston is also in a lot of old economy businesses, such as manufacturing around the oil and gas sector and the activity up and down the Port of Houston. There is a neat and interesting mix of old economy businesses and growth in real estate and all the attendant businesses that surround that. When you layer on top of that the medical center, it’s just a dynamic place to do business. We think this is our No. 1 growth market.
What is your overview of the banking and financial services industry within the Greater Houston region?
We’re probably going to see a continuation of the trends of the last couple of years. There are going to be more banks and financial institutions wanting to enter the Houston market, and that trend has been going on for a while. There will be competition for everybody here. But the growth factors that have propelled us over the last three or four years are going to continue. There are also some interesting things happening in the world of technology, specifically AI and the technology that’s evolving around that. Houston does have some interesting and significant players in those spaces. That’s a hidden little gem that I think we’ll be hearing more about in 2025.
What is behind the small-business loan program for Houston and the Rio Grande Valley?
That is a program called Momentum Express, which is designed for small businesses to quickly access capital for growth needs like equipment and working capital. While Houston and the Rio Grande Valley were the initial markets where we rolled out this program, it is now available to all of our markets statewide. It has been well received, and the application through the funding process is quick. Overall, the program has exceeded our expectations. For businesses that may only need a small amount of working capital or may want to add some equipment, perhaps another truck, it has been a great solution.
In addition to just the standard commercial and industrial lending that we do for small businesses, we do have a terrific SBA capability and an SBA team. That is geared toward smaller businesses, entrepreneurs, and startups. We’ve seen a tremendous amount of growth in that area. That will likely continue, based on the growth in Houston in general.
What are the challenges facing the banking industry in the Greater Houston region?
We’ll always be keeping an eye on the price of oil and gas. We are still a significant energy city in the country. That’s going to have an impact on us. It doesn’t have the impact it did 20 or 30 years ago, but we do want to keep an eye on the health of the oil and gas industry. Interest rates are also going to play a factor in decisions that businesses will be making. So, the stability, or hopefully the continued cuts, in interest rates will have an impact as well.
What is the bank’s strategy for lending activity and maintaining financial sustainability?
PlainsCapital Bank is a strong bank, if not the strongest bank, from a capital-to-asset standpoint. Our peer-leading capital ratios and ample liquidity give us a competitive edge and enable us to take care of our customers’ needs throughout evolving market conditions. That strength has also given us the ability to bring on additional lenders. We have a solid, good-sized team that can get out there and bring in new business, service our existing clients, and grow the Houston market.
How is the bank attracting and retaining clients?
PlainsCapital Bank is headquartered in Dallas. Even though it’s publicly traded, we do have a large shareholder family, and it is run like a small community bank. It’s personal, high-touch, and relationship-oriented, with a stable leadership base. Our president has been with the bank for well over 30 years. Our chief credit officer has been with the bank for well over 30 years. We’ve got a lot of stability at the top of the organization. When you have that, it gives you the confidence to go out and favorably present the bank to clients and prospects. Then we have an interesting part of the bank called Premier Services, which is a high-touch, concierge-type of banking that is available 24 hours a day, seven days a week. It’s a real differentiator for us.
How does the bank demonstrate its commitment to local businesses and the community?
We encourage all our bankers to get involved in charitable organizations that are important or of interest to them. We are supportive of several private education institutions as well as charities in and around the medical field. We are also members of the Greater Houston Partnership, the organizations around the Port, and the numerous chambers of commerce that circle the city.
All our bankers understand the importance of being engaged with the community and giving back. This is not a 9-5 job. It is a 24-hour-a-day, seven-days-a-week job. When you leave the bank, you still have a responsibility to be engaged in your community and give back. We encourage all our bankers to do so.
What is your outlook for PlainsCapital in Houston for the next two to three years?
Houston, as mentioned earlier, is a key growth market for PlainsCapital Bank. We are going to be aggressive in the marketplace. We will be fully engaged across numerous industries in the area, looking to service our existing clients at a high level and then bring in new clients as the opportunities present themselves. We are going to be fully focused on growing the Houston region in 2025, and we are excited about that.
