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Over the course of the past seven years, Baton Rouge-based b1Bank has quintupled in size.
CEO Jude Melville tells Daily Report that much of that growth has come from the expansion of the bank’s Texas footprint—17 of its current 59 branches are located in the Dallas-Fort Worth and Houston markets—though the bank has also doubled its Louisiana presence in the same period.
“We feel like we’re stronger in Louisiana if we’re also strong outside of Louisiana,” Melville says. “Texas arguably has the best economy in the country, so we feel that participating in that market makes the bank as a whole stronger.”
2024 has been a year of milestones for b1Bank in the Lone Star State. In October, the bank’s holding company completed its $85.7 million acquisition of Texas-based Oakwood Bancshares Inc. and its wholly owned bank subsidiary Oakwood Bank. And earlier this month, the bank opened its 11th branch in Dallas-Fort Worth.
“Although we finished September at about $6.8 billion in assets, I believe we’ll end the year at close to $8 billion because of the liquid acquisition and our organic growth,” Melville says.
So, what comes next?
In the short term, Melville says he’s less interested in growth for growth’s sake and more interested in strengthening b1Bank’s presence in its current markets.
“Our No. 1 priority is serving more clients in the areas in which we already operate,” he says. “We don’t have any immediate plans to enter new markets.”
In the long term, though, Melville envisions a future in which b1Bank expands its footprint across the entire southeastern region.
“There’s a huge shift in population and investment capital happening in this country, and it’s focused on the southeast,” he says. “We hope to have our franchise contribute to that over the next 10 or 15 years.”
When asked what banking sector trends he’s keeping a close eye on as we move into 2025, Melville points to four main areas of interest:
- Technology: For Melville, cybersecurity is top of mind. While AI presents opportunities, it has also led to more frequent and more sophisticated attempts at fraud. Investing in fraud prevention and risk management technologies will be a priority for b1Bank in the years to come.
- Regulation: In the wake of this month’s presidential election, Melville says he’s interested in seeing how banking sector regulation will evolve and how such policy changes will impact community banks.
- Investment activity: Shifts in investor interest signal a return of capital to the banking sector—a trend that Melville says will enable banks to provide more robust services for their clients.
- Interest rates: The normalization of interest rates over the course of the next couple of years will create a healthier environment for both the banking sector and the economy at large, Melville says.
