Three Texas banks planning to merge
Three affiliated banking companies in central Texas have agreed to merge.
Southwest Bancshares in San Antonio, Capitol of Texas Bancshares in Austin and Texas Hill Country Bancshares in Bandera are combining to create a bank with 10 branches, $1.5 billion of assets and deposits of $1.3 billion. Southwest would be the surviving company, according to a Tuesday press release.
Southwest is the parent of Bank of San Antonio. Capitol of Texas Bancshares is the holding company for Bank of Austin, while Texas Hill Country Bancshares is the parent of Texas Hill Country Bank.
Though the banks will share a charter, they will maintain their existing names, management teams and boards. The merger is expected to close in the fourth quarter.
Financial terms were not disclosed.
J. Bruce Bugg Jr., chairman, president and CEO of all three banking companies, will retain those posts when the transaction closes.
The companies “have many common shareholders and are affiliated with each other,” Bugg said. “It just made strategic sense for them to combine into one … banking franchise.”
Bank of San Antonio was founded in 2007, while Texas Hill Country Bank was formed in 2009. Bank of Austin opened in 2017.