On February 20, Rio Financial Services Inc., the parent company of McAllen-based Rio Bank, and San Antonio-based Lone Star Capital Bank NA jointly announced the signing of a definitive agreement providing for the merger of Lone Star Capital Bank with and into Rio Bank. Upon the consummation of the merger, Lone Star Capital Bank will become a part of Rio Bank.
Following the close of the transaction, the combined market presence is expected to total approximately $780 million in loans, approximately $1.2 billion in deposits and approximately $1.4 billion in total assets, with 22 full-service branches from Brownsville in the lower Rio Grande Valley to Marble Falls in the Texas Hill Country.
“We are excited to be expanding our footprint in the San Antonio and Texas Hill Country,” says Ford Sasser, CEO of Rio Financial Services and Rio Bank. “Lone Star has offices in San Antonio, Blanco, Johnson City, Dripping Springs and Marble Falls. These are markets we have not been servicing in the past, but we look forward to becoming a part of these communities.”
Donnelly, Penman & Partners acted as financial adviser to Rio Bank and the law firm of Holland & Knight LLP acted as its legal adviser. Stephens Inc. acted as financial adviser to Lone Star Capital Bank, and the law firm of Fenimore, Kay, Harrison LLP acted as its legal adviser.
Established in 1985, Rio Bank operates across the Rio Grande Valley and San Antonio with 16 locations. The bank had $941 million in assets and $485 million in loans as of December 31, 2024.
