A San Antonio community bank owned by the family of prominent businessman Tom Benson is acquiring another small bank in what would be its first-ever acquisition.
The San Antonio Business Journal reported Wednesday that Lone Star Capital Bank is buying Cattleman's National Bank in Johnson City in a deal that would create a $210 million-asset institution with eight branches in five Texas communities.
Danny Buck, Lone Star's president and chief executive, said that the deal would increase Lone Star's capital levels, which, in turn, could help it attract larger, more profitable companies as customers. "And," he added, "by sharing the burden of growing regulatory expenses, the bank will have the means to provide customers additional products and services."
Benson is the owner of the National Football League's New Orleans Saints and the National Basketball Association's New Orleans Hornets. His family is the majority owner of Lone Star Capital and the deal for Cattleman's would be its first since the bank was founded in 2003 to cater to entrepreneurs. The Benson family also owns a ranch in Cattleman's hometown of Johnson City.
"Our family ties to the Hill Country are strong," Benson said in the Business Journal article. "This merger is a perfect fit for our bank and our plans for growth."
The deal is expected to close by Oct. 1 and the banks are expected to operate under their existing names until their operations are fully merged next year, the Business Journal reported. Lone Star did not disclose a deal price.