American Bank is pleased to announce that it has closed on its acquisition of TexStar National Bank, having received regulatory approval from the Office of the Comptroller of the Currency to consummate the transaction. The merger became effective on October 1, 2022, however both banks will continue to operate under their respective names until systems conversion, which is planned for late March 2023.
“It is an exciting time to be at American Bank. We are seeing our long-term strategic vision become a reality and having the TexStar family become part of our own is no small part of that. I have a great deal of respect for TexStar’s leadership and the team they have built, and I am pleased that we were able to work together to complete this transaction so quickly,” said Stephen C. Raffaele, American Bank’s President and CEO. “Closing four months from our June announcement speaks volumes to the strength and commitment of TexStar’s leadership and ours, to our dedicated employees, to the alignment of our cultures, and to the support of our Board, shareholders, community and regulators. This is a great day for both our banks and for all of our clients.”
Founded in 2004, TexStar has six locations in the San Antonio, Texas area with total assets of $451 million as of June 30, 2022.
“We are extremely excited to expand our banking presence in the San Antonio market,” said Ben B. Wallace, Board Chair for American Bank. “We believe the growing South/Central Texas area is one of the strongest commercial banking markets in our state. At American Bank, we offer a distinctive level of service where our clients benefit from a community-banking, relationship-based approach that is combined with the products, resources, and expertise of a larger organization. Throughout the integration of TexStar, our goal is to maintain a consistency in client service, leadership, and support. Clients may notice some signs of change, but they’ll still see the same smiling faces at their local bank.”
Now that the merger is complete, TexStar’s Chairman and Chief Executive Officer, Byron Bexley, will assume the role of Vice Chairman, San Antonio Market, and will lead American Bank’s commercial banking activities in San Antonio. In addition, Manny Ruiz, TexStar’s current President and Senior Lending Officer, will assume a similar role as American Bank’s President, San Antonio Market. This will maintain a consistency in leadership and local decision-making that distinguishes American Bank’s operating model.
“We are excited to join the American Bank family,” said Bexley. “Our employees have already received a warm welcome and overall feeling of camaraderie from the American Bank staff and leadership. I look forward to introducing all TexStar clients to the benefits they’ll experience from working with a community bank that, like TexStar, knows them personally. And I know TexStar’s clients will appreciate the enhanced products, services, and technology they’ll receive from American Bank, not to mention the additional branches across South/Central Texas and the Coastal Bend to serve their banking needs.”
American Bank intends to operate TexStar as a division of American Bank until late in the first quarter 2023, when it is expected that all TexStar branch locations will adopt the American Bank brand, including signage. Over the next several months, TexStar clients can expect timely and transparent communications about how the merger will affect them.
The combined bank will have almost $2.6 billion in total assets with locations in the Houston, Austin, San Antonio, New Braunfels, Corpus Christi, Port Aransas, Rockport, Victoria, and Goliad markets.
Stephens Inc. served as exclusive financial advisor for the board of directors of American Bank, and Norton Rose Fulbright US, LLP served as legal counsel to American Bank. The Hovde Group served as exclusive financial advisor and rendered a fairness opinion to the board of directors of TexStar, and Waller Lansden Dortch & Davis, LLP served as legal counsel to TexStar.
Original source can be found here.
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