Lone Star Capital Bank and Cattleman’s National Bank announced jointly on June 20 that they have entered into an Agreement and Plan of Merger under which the two banks will merge.
The merger is expected to be complete by October 1 of this year. The merger will result in Lone Star Capital Bank holding approximately $210 million in total assets. In addition, Lone Star Capital Bank, which currently has three locations in San Antonio, will expand to eight branch locations – in addition to being in San Antonio, the bank will have locations in Marble Falls, Johnson City, Blanco and Drippings Springs.
Lone Star Capital Bank was founded in 2003 when two banks were merged; according to their website, Lone Star Capital Bank specializes in banking products and services for entrepreneurs, small and medium sized businesses, executives, professionals, and real estate investors.
Cattleman’s National Bank will operate as a division of Lone Star Capital Bank until a full operational merger can be accomplished in 2013.
Until then, customers should continue with business as usual. According to Danny Buck, President and CEO of Lone Star Capital Bank, “All of the merger activity will be happening in the background. Since the merger is subject to regulatory approval, which is expected to happen sometime in August, Cattleman’s (CNB) will continue to operate with its same policies and procedures under the direction of its current board of directors and management team.” Buck expects that even after the merger, that very little will change for CNB customers.
CNB customers will continue to use their same checks and accounts they have now. Eventually, CNB checks will be phased out and Lone Star Capital Bank checks will take their place, but that won’t happen until a later date.
Customers can expect to see more products, services, and locations to use over the course of the next year.
Why merge? “The decision of the banks to merge was based on a number of factors. With our combined capital, we will have a greater capacity to attract larger, more profitable business,” Danny Buck. “And, by sharing the burden of growing regulatory expenses, the bank will have the means to provide customers additional products and services.”
“We are excited for the opportunity to grow with Lone Star Capital Bank,” said Mark Hodges, President and CEO of Cattleman’s National Bank. “Our two solid community banks share the values and focus that fit into our strategic plans to grow in the region.”
Current shareholders of Lone Star Capital Bank will hold ownership of the merged bank; the majority ownership rests with the family of Tom Benson. “Our family ties to the Hill Country are strong,” said Tom Benson. “This merger is a perfect fit for our bank and our plans for growth.”
The Benson Family Ranch in Johnson City has been in the family for almost 50 years, and Uptown Blanco Arts & Entertainment in the heart of Blanco was developed and is owned by Renee Benson, Tom Benson’s daughter.
Tom Roddy, Chairman of Lone Star Capital Bank added, “We are excited to welcome the customers and employees of Cattleman’s National Bank into the Lone Star Capital Bank family and look forward to a bright future together.”
“We anticipate a smooth transition,” said Will Moursund, Chairman of Cattleman’s National Bank. “Cattleman’s National Bank and Lone Star Capital Bank are working jointly to create the most beneficial environment for our employees, customers and communities.”
“We believe that the CNB customers and Lone Star Capital Bank customers will be very pleased with their bank,” Buck said. Customers should direct any questions or concerns regarding the merger of Lone Star Capital Bank and Cattleman’s National Bank to Danny Buck, President and CEO of Lone Star Capital Bank, at (210) 496-6116.