MISSION, Texas - José (Joe) Quiroga, president of Texas National Bank, has given an update on the economic outlook for the Rio Grande Valley.
Quiroga was a panelist at the latest Buenas Tardes Luncheon, hosted by Greater Mission Chamber of Commerce. He was one of six panelists for a discussion titled, The State of Current Business.
Quiroga said he would start with the negatives and then end on a positive note.
“I think on the negative side, obviously the interest rate environment is affecting the housing piece. You know, it used to be, a couple of years ago, we had multiple offers being placed on homes that were new homes or existing homes. I think today we're seeing the used home market really kind of slow down,” Quiroga said.
“And now we're starting to see the new home market slowing down a little bit, just because we aren't able to afford the new rates that are out there.”
Quiroga said there have been some incentives in order to stimulate that, but… “by and large, you're starting to see a little bit of a slowdown in that environment. It’s trickling over to the investment side of the multifamily side, just a bit. I think the national players are still investing, but I think the local players are starting to slow down a little bit.”
Quiroga then spoke about the positives.
“On the flip side, what we're seeing, and to talk about McAllen-Edinburg-Mission area, we used to be able to see that as a little bit of a silo. But to the Judge’s point, the RioPlex mindset is really showing (through) with what's happening in the Brownsville area. The SpaceX and LNG projects in particular, are adding thousands of jobs. At last count, I think LNG had about 3,200 jobs on (Port of Brownsville) site, and I think SpaceX had something like 1,400 permanent jobs.”
This boom in activity in the Brownsville area is having an impact in the Upper Valley, Quiroga said.
“The effects of that is, the contractors and subcontractors that are involved in those projects, it spills over to this area. I was speaking to somebody here earlier… I know several of my clients at the bank who work in the Brownsville area but they're from the McAllen-Edinburg area. And so you're starting to see those positives, that amount of investment really start to turn the economy here.”
The amount of money being spent on border security in the RGV is also having an impact, Quiroga said.
“You couple that with the fact that we have immigration issues, the building of the border wall, federal dollars being sent down here, all of that is adding jobs as well. And then we're starting to see, the Mexico investment. You know, for a long time that was sort of stalled (but) we’re starting to see some Mexico investment.”
Overall, the situation is positive, Quiroga argued.
“When you put all that together, we're still have a robust economy down here. Maybe not what it was three years ago, but I think we really have to count our blessings. We're still growing at a very fast pace. And… the banking sector is very, very solid. Not only our bank. I think most of the banks down here are in a very solid state, and so it bodes well from an investment and lending standpoint.”
Quiroga was asked to give some wrap-up remarks by the moderator, Dr. Kimberly Selber, an associate dean for community engagement in UT-Rio Grande Valley’s college of liberal arts.
“I'll start off by saying that there's a 94% chance for a rate cut in September,” Quiroga responded. “Look, we're blessed. We're in the best state in the United States for business investment, as the representative said, and we're in one of the best areas in the state for that. And so I think sometimes you got to take a step back and just really count our blessings that we have here in the Rio Grande Valley. We have a tremendous amount of economic growth, a tremendous amount of resources.”
The judge Quiroga referred to was Hidalgo County Judge Richard Cortez, a fellow panelist. The other four panelists were state Rep. Sergio Muñoz, of Mission, Rick Carrera, director of economic development for the Council for South Texas Economic Progress, Dante Galeazzi, president and CEO of Texas International Produce Association, and Juan Francisco Ochoa, Jr., CEO of Taco Palenque Group.
Editor’s Note: Here is an audio recording of Quiroga’s remarks on the panel:
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José (Joe) Quiroga is the president of Texas National Bank and a member of the Bank's Board of Directors, a role he has had since 2007. He also serves on the board of TNB Bancshares Corporation.
Texas National Bank is a Hispanic-owned, community-focused, CDFI (Community Development Financial Institution), originally chartered in 1920 in Mercedes, Texas. The Bank emphasizes meeting the needs of small businesses across the Rio Grande Valley. Under Mr. Quiroga’s leadership, the Bank has grown from $64 million to $940 million in assets, expanding to ten locations since 2007.
Before joining Texas National Bank, Mr. Quiroga served as Vice President at JPMorgan Chase, where he held roles in Commercial Lending and Private Banking, managing both domestic and international clients. He was previously licensed as a registered Investment Advisor with NASD Series 7 and 63 certifications and held a Group 1 insurance license with the State of Texas.
Mr. Quiroga is currently serving his second term on the Board of Directors for the Federal Reserve Bank of Dallas. He previously served on the Community Depository Institutions Advisory Council and was selected to represent the committee nationally, in Washington, DC.
He also serves on the Minority Depository Institutions Advisory Committee to the Comptroller of the Currency, the board of the Community Development Bankers Association, and the Texas Bankers Association.
His civic involvement includes serving on the boards of the Edinburg Boys & Girls Club, the TNB Foundation, Christian’s Manor and Del Valle Community Development Corporation. He previously served on the board of the VAMOS Scholarship Fund.
Mr. Quiroga graduated Magna Cum Laude from the University of Texas-Pan American in 2000 with a degree in Business Administration and a concentration in Finance.
