Lone Star State Bank of West Texas

What Lone Star State Bank of West Texas does

Lone Star State Bank of West Texas was a privately held, Texas state-chartered community bank headquartered in Lubbock, operating five branch locations across the South Plains and Permian Basin regions in Lubbock, Midland, Odessa, Big Spring, and Brownfield. The bank offered a comprehensive suite of depository products including personal and commercial checking, savings, money market, certificates of deposit, and IRAs, alongside a diversified lending portfolio covering installment, auto, real estate, commercial, energy, agriculture, and agribusiness loans. Its primary customer segments were retail consumers, small-to-mid-size businesses, and the regional agricultural and energy economies of West Texas.

The bank's technology infrastructure was built on a Fiserv-powered digital banking stack, including personal and business online banking portals and the Mobile Money mobile application for iOS and Android, with security features such as multi-factor authentication, randomized 8-digit security tokens, and 128-bit SSL encryption. The platform integrated peer-to-peer payments (Zelle, Popmoney), digital wallet support (Apple Pay, Google Pay, Samsung Pay), CardValet for debit card controls, and remote deposit capture for business customers, reflecting a deliberate effort to deliver modern digital functionality layered on top of a traditional branch-based relationship model.

The bank monetized through a standard community bank revenue model: net interest income from lending activities across consumer, commercial, energy, and agricultural segments, supplemented by deposit account service fees, transaction-based charges (overdraft, wire, ACH origination, online bill pay), and ancillary services such as check ordering and debit card services. On October 28, 2024, the bank completed a merger with Prosperity Bank, transitioning all branches, accounts, and digital banking customers to the larger institution.

Name

Lone Star State Bank of West Texas

Legal name

Lone Star State Bank of West Texas

Website

https://lonestarwtx.com

Company type

Private

Founded year

2007

Operating status

Acquired

Headcount range

101–250 employees

Short description

Lone Star State Bank of West Texas was a Lubbock-headquartered, state-chartered community bank operating five branches across the South Plains and Permian Basin, offering depository and lending products to retail consumers, small businesses, and the regional agricultural and energy sectors.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Depository Credit Intermediation (5221)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

akta.pro secondary industries

Small Business Banking (Microbusiness/Sole Proprietor) (FSABAAAI), SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

Keywords

• Community banking
• Depository products
• Commercial lending
• Agricultural loans
• Mobile banking

Headquarters

HQ city

Lubbock

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Interest Income from Lending: Interest earned on various loan products including installment loans, auto loans, real estate loans, commercial loans, energy loans, agriculture loans, and agribusiness loans.
2. Deposit Account Fees: Monthly service fees on checking and savings accounts (e.g., $5-$15 monthly fees depending on account type and balance requirements), overdraft fees, and account maintenance fees.
3. Electronic Banking Services: Fees from online bill pay ($5.75 for 10 items then $0.50 each additional item), external transfers, and other electronic banking services.
4. Transaction-based Fees: Per-transaction fees such as commercial checking (free transactions then $0.15-$0.25 per item), wire transfer fees, and ACH origination fees.
5. Check and Card Services: Fees related to check orders, debit card services, and other banking services.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels4 records

Core offering

Lone Star State Bank of West Texas is a state-chartered community bank providing personal and business depository products (checking, savings, money market, CDs, IRAs) and a broad lending portfolio (installment, auto, real estate, commercial, energy, agriculture, and agribusiness loans). Services are delivered through five West Texas branch locations complemented by Fiserv-powered online and mobile banking, mobile deposit, ACH origination, wire transfers, remote deposit capture, treasury management, and Zelle/digital wallet payment integrations.

Product overview

Lone Star State Bank of West Texas offers a comprehensive suite of traditional banking products and services through a unified digital banking platform. The core offering consists of Personal and Business Online/Mobile Banking platforms that provide account management, fund transfers, bill payment, and mobile deposit capabilities. These digital channels are powered by Fiserv and integrated with payment services including Zelle, Apple Pay, Google Pay, Samsung Pay, and Popmoney for expanded payment flexibility. The product portfolio spans deposit products (checking, savings, money market accounts, and CDs with IRA options) across personal and commercial variants, loan products (installment, auto, real estate, commercial, energy, agriculture, and agribusiness loans), and value-added services (ACH origination, wire transfers, remote deposit capture, debit cards, digital wallet integration, card controls via CardValet, e-statements, and account alerts). The bank serves the greater West Texas region with a focus on the South Plains and Permian Basin markets through 5 branch locations in Lubbock, Midland, Odessa, Big Spring, and Brownfield.

Differentiator

Problem solved

Functional benefit

Products and services

• Personal Checking Accounts A suite of personal checking accounts including Freedom Checking (no monthly fee), Smart Checking, Interest Checking, Elite Checking (55+), Lone Star Connection premium relationship account, and Student Checking, designed for individual consumers in West Texas.
• Personal Savings Accounts Personal savings products including Regular Savings, Money Market Account, and Colt Savings (for customers under 18), with tiered interest rates and balance-based fee waivers.
• Certificates of Deposit (CDs) Fixed Rate, Jumbo Fixed Rate ($100,000 minimum), and Flex Fixed Rate (18-month term, one penalty-free withdrawal) CDs with terms ranging from 1 to 60 months and interest compounded quarterly.
• IRA Accounts Individual Retirement Account options including Fixed Rate IRA and Jumbo Fixed Rate IRA providing tax-advantaged retirement savings.
• Commercial Checking Accounts Business checking account options including Free Commercial Checking, Regular Commercial Checking, Commercial Interest Checking, and Commercial Analysis Checking tailored to varying transaction volumes and balance tiers.
• Commercial Savings and Money Market Commercial Savings and Commercial Money Market accounts providing competitive interest rates and limited check-writing access for business deposit growth.
• Commercial Certificates of Deposit Commercial Fixed Rate CDs, Jumbo Commercial Fixed Rate CDs ($100,000 minimum), and Commercial Flex Fixed Rate CDs with limited penalty-free withdrawal provisions.
• Personal Online and Mobile Banking Fiserv-powered electronic banking platforms (web and mobile app) enabling personal customers to view balances, transfer funds, pay bills, deposit checks remotely via mobile deposit, and receive account alerts with multi-factor authentication.
• Business Online and Mobile Banking Commercial electronic banking platform with account management, treasury functions, integrated cash management capabilities, and mobile access for business customers.
• Treasury Management Services ACH origination for direct deposit payroll and vendor payments, domestic and international wire transfers, and remote deposit capture using bank-provided check scanners for commercial customers.
• Debit Cards and Digital Wallet Integration Bank-issued debit cards supporting point-of-sale, ATM, and online transactions, with tokenization for Apple Pay, Google Pay, and Samsung Pay contactless payments, plus CardValet-based card controls.
• Personal Loans Installment loans and auto loans with fixed repayment schedules and competitive rates for qualified individual borrowers.
• Real Estate Loans Mortgage and real estate financing products for purchasing, refinancing, or building properties, serving both personal and commercial borrowers.
• Commercial Loans Business lending products including term loans and lines of credit designed to meet capital and operational financing needs of commercial customers.
• Energy Loans Specialized financing for energy sector businesses in the Permian Basin region of West Texas, supporting oil and gas operations and related energy services.
• Agriculture and Agribusiness Loans Farm, ranch, and agribusiness financing including seasonal operating loans, equipment financing, land purchases, and specialized financing for processing, distribution, and value-added agricultural enterprises in the South Plains region.

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

Feature6 records

Partnerships

Three partnerships are on record, tiered flagship, core and minor.

• Prosperity BankflagshipOthers · 28 October 2024Lone Star State Bank announced a merger with Prosperity Bank, effective Monday, October 28, 2024. As part of the conversion, Lone Star's online and mobile banking will transition to Prosperity Bank's platform, and all Lone Star branches will become Prosperity Bank locations.
• FiservcoreTechnology or IntegrationFiserv provides the online and mobile banking platform powering Lone Star State Bank's electronic banking services. This includes personal online banking, business online banking, mobile banking app (Mobile Money), mobile deposit, and related digital banking features.
• American ExpressminorOthersLone Star State Bank is an authorized delegate of American Express under Chapter 151 of the Texas Finance Code for selling checks. The bank also offers preferred credit card eligibility for Lone Star Connection account holders.

Scale indicators2 records

Recent moves7 records

Expansion highlights4 records

Broad incumbents

• Prosperity Bank: Large Texas-headquartered community banking franchise that is acquiring Lone Star State Bank. Directly comparable as a state-chartered commercial bank offering similar deposit, lending, and treasury products to Texas retail and SMB customers, but at materially greater scale and geographic breadth.
• PlainsCapital Bank: Texas commercial banking franchise offering deposit accounts, treasury management, and commercial lending across the state. Comparable as a Texas-focused commercial bank serving similar SMB and consumer customers, though PlainsCapital operates with a broader geographic footprint.
• American National Bank of Texas: Texas state-chartered bank serving consumer and commercial customers across North Texas and beyond with deposit accounts, commercial lending, and treasury management. Comparable as a Texas state-chartered commercial bank with broader geographic reach but similar product set and customer segments.

Direct peers

• FirstBank (formerly Happy State Bank): Texas-based community bank offering consumer and commercial deposit accounts, agricultural lending, and digital banking across West Texas and the Texas Panhandle. Comparable as a Texas state-chartered bank with similar rural-and-energy geography and agricultural lending focus.
• First United Bank (Texas): Community bank headquartered in the Texas Panhandle with branches across West Texas including Lubbock and surrounding markets. Comparable as a state-chartered community bank with similar retail/SMB deposit products, agricultural lending, and energy-sector exposure in overlapping markets.
• Citizens State Bank (Texas): Independent Texas community bank serving West Texas markets with deposit accounts, agricultural lending, and commercial banking services. Comparable as a similarly sized state-chartered community bank focused on rural and small-metro Texas markets with overlapping customer segments.
• Vista Bank: Texas-based community bank with strong West Texas presence including Lubbock, Midland, and Odessa branches. Comparable as a direct geographic peer in the Permian Basin offering similar deposit, commercial lending, and energy-sector banking products to overlapping SMB and consumer customers.
• Texas Bank and Trust: Texas state-chartered community bank operating across West and East Texas offering deposit products, commercial lending, and digital banking. Comparable as a similarly sized community bank with analogous SMB, consumer, and agricultural lending focus in overlapping Texas geographies.
• Centennial Bank (Texas): Texas-based community bank offering personal and business deposit accounts, lending products, and digital banking services. Comparable as a state-chartered community bank serving similar SMB and consumer segments with a relationship-banking model.
• Southwest Bank (Texas): Texas community bank serving Lubbock and West Texas markets with consumer and commercial banking products. Comparable as a direct geographic competitor in Lubbock and the South Plains offering similar deposit accounts and SMB lending products to overlapping customers.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks2 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/lonestarwtx
• LinkedInlinkedin.com/company/lone-star-state-bank-of-west-texas

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lone Star State Bank of West Texas