MCALLEN, TX and San Antonio, TX (February 20, 2025) – Rio Financial Services, Inc. (“RFS”), the parent company of Rio Bank, headquartered in McAllen, Texas, and Lone Star Capital Bank, N.A, (”Lone Star”), headquartered in San Antonio, Texas, today jointly announced the signing of a definitive agreement providing for the merger of Lone Star with and into Rio Bank. Upon the consummation of the merger, Lone Star will become a part of Rio Bank.

“We are excited to be expanding our footprint in the San Antonio and Texas Hill Country,” said Ford Sasser, Chief Executive Officer of RFS 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.”

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 twenty two full-service branches from Brownsville in the lower Rio Grande Valley to Marble Falls in the Texas Hill Country.

“Our customers and employees will like the idea of merging with another locally owned community bank. Rio Bank shares the same values and culture as Lone Star,” says Danny Buck, President and CEO of Lone Star.

The boards of directors of Rio Bank and Lone Star have unanimously approved the transaction. The transaction is subject to customary closing conditions, including receipt of regulatory approval. Shareholders of Lone Star have already approved the merger.

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, and the law firm of Fenimore, Kay, Harrison, LLP acted as its legal adviser.