News Summary
San Antonio’s Lone Star Capital Bank is set to be sold to Rio Financial Services Inc., the parent company of Rio Bank. This anticipated merger will combine both banks, creating a financial institution with approximately $1.4 billion in assets and aims to enhance services across the region. The transaction is expected to complete in May, pending regulatory approval, and will keep current staff in place. This change potentially transforms the banking landscape in San Antonio, benefiting both existing and new customers.
Big Changes Ahead for Lone Star Capital Bank in San Antonio
San Antonio is buzzing with news as the heirs of the late billionaire Tom Benson have agreed on a significant move: they will sell Lone Star Capital Bank to none other than Rio Financial Services Inc., the parent company of popular McAllen’s Rio Bank. This deal comes after a series of considerations and strategic exploration, and it looks like some exciting times are ahead for the bank and its customers!
The Details of the Deal
While the exact terms of the sale haven’t been revealed just yet, it’s anticipated that the transaction will close in May, depending on regulatory approval. Once the deal is finalized, Lone Star Capital Bank will officially become a part of Rio Bank. This merger is set to create a combined banking institution boasting around $1.4 billion in assets. If you’re wondering, that’s enough to rank them as the 89th largest bank in Texas as of last year!
A Quick Look at Lone Star Capital Bank
For those who might not be familiar, Lone Star Capital Bank opened its doors back in 2003 from a merger between Mission National Bank and Clear Lake National Bank. The bank grew steadily over the years, with financials at the end of last year showcasing impressive numbers: $497.9 million in assets, $303.6 million in loans, and $436.9 million in deposits. It generated a profit of $462,000 on revenue of $25.5 million.
Currently, the bank has a total of eight branches sprinkled around Texas, including San Antonio, Austin, Johnson City, Dripping Springs, Marble Falls, and Blanco. With a team of 70 dedicated employees, Lone Star Capital Bank has plans to keep all its current staff in place after the merger, which is reassuring news for many!
Ties to Tom Benson
Let’s not forget that Tom Benson was a prominent figure as the owner of the New Orleans Saints and a former car dealer in San Antonio. He passed away in 2018 at the age of 90, leaving behind a financial legacy, including Lone Star Capital Bank. His daughter, Renee Benson, has played a vital role in the bank’s development and success. She and her two children are currently directors at the bank, ensuring the Benson legacy continues to live on through their efforts.
The Future of Rio Bank
As for Rio Bank, they have exciting plans in mind following this merger. They aim to expand their presence in San Antonio and the Hill Country, offering services that specifically target small- to medium-sized businesses while enhancing their commercial real estate lending capabilities. With a branch already located in Alamo Heights and many more in South Texas, the fusion with Lone Star promises a greater footprint and reach.
Recognition and Rating
It’s worth mentioning that both banks hold a prestigious five-star rating from BauerFinancial Inc., marking them as some of the best in the business. This vote of confidence should also reassure customers that their money is in good hands.
Next Steps
As we eagerly await regulatory approval from the Texas Department of Banking and the FDIC, it’s safe to say that this merger has been met with unanimous approval from both banks’ boards and the shareholders of Lone Star. This is certainly a new chapter for Lone Star Capital Bank that many will be watching closely.
In summary, it looks like the financial landscape in San Antonio is about to change in a big way. With such a merger on the horizon, customers can expect new and improved services at the soon-to-be-combined bank, and the diverse offerings will undoubtedly enhance the banking experience across the region!
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Additional Resources
- San Antonio Express-News: Tom Benson Lone Star Capital Bank Sale
- Wikipedia: Tom Benson
- The Monitor: Valley-based Rio Bank Merger
- Google Search: Lone Star Capital Bank merger
- American Banker: Texas Community Banks Merger Deals
- Google Scholar: Texas bank mergers
- PR Newswire: Prosperity Bancshares Merger
- Encyclopedia Britannica: Bank mergers
- Texas Border Business: Lone Star National Banks Help Program
- Google News: Lone Star National Bank homebuyers Texas
