First Victoria bank merges with First State Bank
First State Bank-New Braunfels agreed on Thursday to merge with the oldest independent bank in Texas - First Victoria National Bank.
First State Bank has five offices in Comal and Bastrop counties and has a total of $270 million in assets as of Dec. 31.
The merger will raise the assets of First Victoria National Bank to more than $2 billion.
M. Russell Marshall, president of First Victoria, applauded the reputation of First State Bank for its experience and customer service.
"The combination of our organizations will increase our collective footprint in Texas, offering even greater banking convenience to all customers," Marshall said in a news release. "It will support the strong tradition of both organizations as exceptional service providers."
First Victoria National Bank Corp. and Capitol Bankshares Inc. are still subject to customary closing conditions and approval by shareholders and regulatory agencies, but the transaction is expected to be finalized during the second quarter of this year.
Upon completion of the transaction, the five branches of First State Bank in New Braunfels, Bastrop, Canyon Lake and Smithville will operate as branches of First Victoria.
This will add to First Victoria's locations in 18 cities across southwest Texas.
First State Bank officials see the merger of the two banks as a way to provide even better service to their customers, said Yerger Hill, chairman of the Board of Capitol Bankshares Inc.
"First Victoria's diverse experience in lending, along with an impressive list of products and services, makes this merger highly attractive to the communities we serve, our customer shareholders," Hill said in a news release. "To be able to offer trust and investment management, brokerage services, insurance and cash management for small business are among the many reasons this news will be well received by our customers."
Hill will be named a board member of First Victoria National Bank and FVNB Corp. after the closing of First State Bank.
Barry Williams, CEO of First State Bank, will become the executive vice president and regional lending manager for the Comal and Bastrop counties markets.
John Harrell, president of First State Bank, New Braunfels, will become the senior vice president of private banking.
"In making this decision, we wanted to be certain that our organization would team up with a bank that reflects our commitment to the communities and customers we have been grateful to serve," Hill said in a news release. "First Victoria is an excellent match."
Williams said First State Bank will add their knowledge of the market to First Victoria's long history in South Central Texas and its depth of financial products and services.
"This will mean significant added value for our current customer relationships and attracting new business to our unique brand of banking," Williams said. "I think it is uncommon to have two organizations - both over a century old - create a partnership like this."