Multiple Texas community banks ink merger deals

February 28, 2025 3:00 PM

In this week's banking news roundup: Lone Star Capital Bank's plan to merge into Rio Financial Services' banking subsidiary is one of several recently announced Texas M&A deals; David Sparacio is joining Birmingham, Alabama's ServisFirst Bancshares as its chief financial officer; Capital City Bank names Ramsay Sims chief banking officer; and more.

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Multiple Texas community banks ink merger deals

San Antonio-based Lone Star Capital Bank agreed to merge into McAllen, Texas-based Rio Financial Services' banking subsidiary.

The combination would create a bank with about $1.4 billion of assets, $780 million of loans and $1.2 billion of deposits, according to a press release. The combined bank would have 22 branches.

The companies did not disclose in the release financial terms or an expected closing date. Lone Star's shareholders have approved the merger, but the deal is subject to regulatory approvals.

Separately, two other Texas banks struck a deal to combine.

Yoakum National BancShares, the parent company of Yoakum National Bank, said it plans to buy Ganado Bancshares, the parent company of Citizens State Bank of Ganado. The surviving Yoakum National would have about $375 million of assets.

Terms were not disclosed in a release. The transaction is expected to close in the second quarter. —Jim Dobbs

David Sparacio

ServisFirst hires next CFO from Ameris Bank

ServisFirst Bancshares in Birmingham, Alabama, has recruited David Sparacio to be its new chief financial officer, the $17.4 billion-asset company said. Sparacio, who most recently was the corporate controller at Ameris Bank in Atlanta, will join ServisFirst, the parent company of ServisFirst Bank, on March 10.

Sparacio will oversee the bank's financial strategy, regulatory reporting and accounting operations. A U.S. Army reservist since 1991, Sparacio will succeed Ed Woodie, who has been ServisFirst's interim CFO since Kirk Pressley resigned from the post in October. Woodie will return to his role as controller, a company spokesperson said.

Sparacio will receive a base salary of $350,000 and a cash signing bonus of $25,000, according to a regulatory filing. He will also receive 5,000 shares of restricted stock that will fully vest in five years, the filing said. —Allissa Kline

Capital City promotes Ramsay Sims to chief banking officer

Capital City Bank has named Ramsay Sims as its chief banking officer, a newly created position focusing on growth, efficiency and operational cohesion.

"Adding this new leadership role positions us for long-term success and sustained excellence as we continue to grow," Chairman, President and CEO Bill Smith said in a press release Monday.

Sims joined the $4.3 billion-asset bank in 2010 and was most recently chief lending officer, the bank said. Capital City Bank named William Smith to succeed Sims as chief lending officer. —Mary de Wet

MVB Financial in West Virginia sells stake in tech firm

MVB Financial in Fairmont, West Virginia, said it sold its interest in Trabian Technology, a software development company. The $3.1 billion-asset MVB did not disclose a price in a press release. The banking company bought a majority stake in Trabian in 2021.

MVB partnered with the financial technology company to create automated workflows for card transaction data.

Trabian said in a separate statement on its website that it repurchased MVB's shares "to once again be a privately held company." CEO Matt Dean said Trabian would continue to work with MVB.

"As much as our relationship with MVB has deepened over the past few years, we've also broadened our client base and now work with close to 200 financial institutions and fintech clients," Dean said. "We felt we'd be able to better serve those clients as an independent entity." —Jim Dobbs

First Interstate lines up next finance chief

First Interstate BankSystem in Billings, Montana, has identified David Della Camera as its next chief financial officer, the company said in a press release. Della Camera, who has been the bank's deputy CFO since last year, will move into the top seat on June 1, one day after current CFO Marcy Mutch, 64, steps down, the company said.

Della Camera, 31, joined First Interstate in 2021 as a senior finance manager. His promotion is part of a "multiyear, strategic succession plan" that was put into place as Mutch approached retirement age, the company said. As CFO, Della Camera is expected to receive a base salary of $500,000, according to a regulatory filing. He joined First Interstate from People's United Financial, which was acquired by M&T Bank in 2022.

Mutch, CFO since 2015, will serve as an "executive advisor" to the company before fully retiring at the end of the year, according to the filing. Thereafter, she will be a non-employee consultant through Dec. 31, 2026, the filing said. —Allissa Kline

ABA names new senior vice president of strategic engagement

The American Bankers Association has promoted Robert Flock to senior vice president of ABA's office of strategic engagement, the association said Wednesday.

In his new position, Flock will manage a team responsible for state policy issues and external engagement, as well as grassroots activities and voter education. He will also serve as the staff liaison to ABA's Government Relations Council, a banker-led committee that recommends annual policy priorities for ABA's board of directors.

"Robert has a deep understanding of the policymaking process and an impressive track record of coalition building both inside and outside of the financial services sector," said Jess Sharp, ABA's executive vice president of advocacy and innovation.

Flock has played a key role in ABA's advocacy efforts on bank capital requirements, debit interchange fees, credit union issues, bank mergers and other critical areas since joining the association in 2022. —Editorial Staff

San Francisco FHLB promotes Hennessy to CFO

The Federal Home Loan Bank of San Francisco promoted Michael Hennessy to executive vice president and chief financial officer, succeeding Joseph Amato, who is serving as interim president and CEO.

Hennessy, who has been with the bank for nearly 20 years, starts his new role on April 1. He currently serves as senior vice president, finance and analytics officer, overseeing financial planning and budgeting, capital markets analysis, valuations and analytics, and liquidity management, the bank said in a press release on Tuesday.

"Mike's deep understanding of the bank and the broader financial industry has been invaluable in advancing our mission of providing liquidity to our members and investing in communities," Amato said. "His leadership and expertise will be important in shaping and executing the bank's strategy.

The bank's board of directors has been seeking a permanent chief executive officer after Alanna McCargo left in January. McCargo had been appointed to the job in June 2024. —Mary de Wet

Horizon Bancorp in Indiana to get new board chair

Horizon Bancorp in Indiana will have a new board chair following the retirement of Craig Dwight on May 1.

Eric Blackhurst, who currently serves as a director at the $8 billion-asset bank, will take over the role, the company announced.

Blackhurst, who has served on Horizon's board for more than seven years, recently retired as an associate general counsel at The Dow Chemical Company.

"Eric's strategic vision, character and experience make him ideally suited to seamlessly transition into the role of Chairperson," Horizon President and CEO Thomas Prame said in a press release.

Michigan City, Indiana-based Horizon also announced that the role of lead independent director will be retired following Dwight's departure because the company is transitioning to an independent chairperson. The role of lead independent director is currently held by Michele Magnuson, who will continue to serve on the board. — Kevin Wack