Bank of South Texas

What Bank of South Texas does

Bank of South Texas is a privately held, Texas state-chartered community bank headquartered in Pharr, serving the Rio Grande Valley and South Texas through seven branch locations (Pharr, McAllen, Kingsville, Hebbronville, Mission, Edinburg, and a newly opened Brownsville office). Originally founded in the mid-1990s with an agricultural-lending focus, the bank has expanded into a full-service personal and business banking franchise targeting local consumers, small-to-medium-sized businesses, and commercial real estate and multifamily investors in its regional market.

The product portfolio spans deposit products (four personal checking variants, three savings tiers, money market accounts, CDs, IRAs), consumer lending (residential construction loans, personal credit cards on the Mastercard network), and a comprehensive commercial lending suite including commercial real estate loans, general commercial loans, expansion loans ($50K–$2.8M), SBA loans, apartment lending, floorplan lending, and owner-occupied commercial financing. Merchant services are offered through Clover POS (Fiserv), and digital banking is delivered via a Fiserv TouchBanking mobile app, online account opening (Deposit Essentials), Zelle P2P, Card Management with Apple Pay/Google Pay, and Allpoint's 55,000+ ATM network. The technology stack is entirely third-party — Fiserv for core digital and POS, Mastercard for card network, Zelle for P2P — with no disclosed proprietary technology layer.

Revenue is generated primarily through net interest income on the lending-to-deposit spread, supplemented by deposit service charges ($5–$35 fee schedule), Mastercard interchange on personal and business credit card programs, Clover merchant processing fees, and loan origination and servicing fees across the commercial book. The go-to-market is direct-to-consumer via the branch network, community event sponsorships, content marketing, and digital channels, with the bank's value proposition centered on local decision-making, fast construction-loan approvals (as few as 30 days), and a personalized relationship-banking model differentiating it from national competitors.

Name

Bank of South Texas

Legal name

Bank of South Texas

Website

https://bankofsouthtexas.com

Company type

Private

Founded year

1994

Operating status

Operating

Short description

Bank of South Texas is a privately held community bank operating 7 branches across the Rio Grande Valley, offering personal and business deposit accounts, consumer and commercial lending, SBA loans, and Clover merchant services to South Texas consumers, SMBs, and commercial real estate investors.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211), Credit Card Issuing (52221)

SIC

State Commercial Banks (6022), Personal Credit Institutions (6141)

akta.pro primary industry

SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

akta.pro secondary industries

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA), Credit Cards & Revolving Credit (FSABAAAC)

Keywords

• Community banking services
• Commercial lending products
• Small business banking
• Construction loan financing
• Merchant payment processing

Headquarters

HQ city

Pharr

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

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

Revenue model

1. Net Interest Income: Primary revenue driver for the community bank — interest income earned on loans (construction, commercial real estate, SBA, apartment, floorplan, consumer) exceeds interest paid on deposits (checking, savings, NOW accounts, money market, CDs). Spread-based revenue from lending and deposit-taking activities.
2. Service Charges and Fees: Monthly service charges on checking and savings accounts (e.g., $5-$10 monthly for regular checking based on balance tiers), overdraft/NSF fees ($35 per item), wire transfer fees, stop payment fees ($30), ATM fees, and other banking service charges.
3. Credit Card Interchange: Transaction fees earned on Mastercard credit card transactions processed through the bank's personal and business credit card programs, including Standard, Low Rate, and Preferred Points Rewards cards.
4. Merchant Services / Clover: Revenue from Clover point-of-sale systems and payment processing services offered to business customers, including Clover Capital working capital products.
5. Loan Origination and Servicing Fees: Fees associated with originating and servicing SBA loans, commercial real estate loans, construction loans, apartment lending, and other commercial credit products.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels7 records

Core offering

Bank of South Texas is a community bank providing personal and business deposit accounts (checking, savings, NOW, money market, CDs, IRAs), Mastercard personal and business credit cards, residential construction loans, and a full commercial lending suite (commercial real estate, commercial, expansion, SBA, apartment, floorplan, and owner-occupied financing). Merchant services are delivered through Clover point-of-sale systems, and digital banking is provided via the Fiserv TouchBanking mobile/online platform and Deposit Essentials online account opening.

Product overview

Bank of South Texas (also known as RGV Bank) is a community bank offering a comprehensive suite of personal and business banking products. The personal banking portfolio includes four checking account variants (Star Checking, Regular Checking, Gold Star Checking, and NOW Checking with interest), three savings tiers (Savings Account, Money Market Savings, and Premium Money Market), Certificates of Deposit with competitive APY rates, Retirement Accounts (IRA), personal credit cards (Low Rate and Preferred Points Rewards Mastercard), and residential construction loans. Business offerings encompass three checking tiers (Nonprofit, Choice Business, and Value Business Checking), two business credit cards (Standard and Preferred Points Rewards Mastercard), and a full commercial lending suite including Commercial Real Estate Loans, Commercial Loans, Expansion Loans ($50K-$2.8M), SBA Loans, Apartment Lending, Floor Plan Lending, and Owner Occupied Commercial financing. Additional services include Clover POS (from Fiserv), Mobile and Online Banking, Instant Issue Debit Cards, ATM Services via Allpoint network (55,000+ locations), Card Management with Apple Pay/Google Pay integration, Zelle P2P payments, and Overdraft Protection. The bank operates seven branches in South Texas (Pharr, McAllen, Kingsville, Hebbronville, Mission, Edinburg, Brownsville) and has served the Rio Grande Valley for over 30 years.

Differentiator

Problem solved

Functional benefit

Products and services

• Star Checking A basic personal checking account with free debit card, 24/7 ATM access, unlimited transactions, free online and mobile banking, free bill pay, free e-statements, and access to 55,000 free ATMs. $50.00 minimum to open with a $5.00 monthly service charge.
• Regular Checking A standard personal checking account offering full online and mobile banking, debit card, check-writing, and ATM access, with a tiered monthly service charge that can be waived at higher balances.
• Gold Star Checking A senior personal checking account (55+) with no monthly service charge, free debit card, and free bill pay for customers with direct deposit.
• NOW Checking An interest-bearing personal checking account with unlimited check-writing privileges, free bill pay, debit card, e-statements, and online/mobile banking, subject to a $10 monthly service charge if the balance falls below $1,500.
• Savings Account A basic personal savings account with free ATM card, free e-statements, and access to 55,000 free ATMs, with no minimum balance to open and daily compounded interest credited quarterly.
• Money Market Savings A higher-interest personal money market savings account with limited check-writing privileges, six free withdrawals per statement cycle, and interest compounded monthly.
• Premium Money Market Account A premium-tier personal money market account with tiered interest rates, free e-alerts and e-statements, online and mobile banking access, and an ATM card for balances generally above $25,000.
• Certificate of Deposit A fixed-term personal deposit product offering guaranteed interest rates (featured 6-month CD at 3.85%/3.92% APY and 12-month CD at 3.20%/3.24% APY) with a $1,000 minimum opening deposit, quarterly compounding, and early-withdrawal penalties.
• Retirement Account (IRA) An Individual Retirement Account (IRA) product with $100 minimum opening deposit, automatic renewal at maturity, a 10-day grace period for penalty-free withdrawal, and early-withdrawal penalties in line with standard CD terms.
• Low Rate Credit Card A no-annual-fee personal Mastercard offering a low introductory APR for the first six months, a 25-day interest-free grace period, and Mastercard benefits including rental car insurance, ID theft protection, global services, and online shopping discounts.
• Preferred Points Rewards Credit Card (Personal) A personal Mastercard credit card earning one reward point per dollar spent (up to 10,000 points/month), with no annual fee, low introductory APR, and redemption options via MyPreferredPoints.com for cash-back, gift cards, travel, and merchandise.
• Standard Business Credit Card A Mastercard business credit card offering a 25-day interest-free grace period, individual and summary billing options, and Mastercard business benefits such as car rental insurance, global service, mobile receipt management, and easy savings.
• Preferred Points Rewards Credit Card (Business) A business Mastercard rewards credit card with a $49.00 annual fee earning one point per dollar spent (up to 10,000 points/month), individual billing only, and low interest rates plus Mastercard business benefits.
• Residential Construction Loan A residential construction loan for building custom homes, featuring local decision-making, dedicated loan specialists, a fast approval process with e-signature capabilities, an easy transition to a permanent mortgage, and closings in as few as 30 days.
• Nonprofit Organization Checking An economical business checking account designed for nonprofit organizations (educational, environmental, religious, health, cultural, and membership groups), with a $50 minimum to open and no monthly service charge when the balance is $700 or above.
• Choice Business Checking A small business checking account with up to 200 free transaction items per month, a free business instant-issue debit card, access to merchant services, and a $15 monthly service charge waived when the average balance is above $2,500.
• Value Business Checking A higher-volume business checking account offering up to 400 free transaction items per month and a tiered monthly service charge that is waived when the average balance exceeds $5,000.
• Commercial Real Estate Loans A commercial real estate loan product for purchasing or refinancing commercial properties, offering competitive fixed and floating rates and covering the tax advantages, overhead control, and asset appreciation use cases.
• Commercial Loans A commercial loan product providing working capital and equipment financing for South Texas businesses, including equipment financing for new or used equipment and expansion/acquisition loans that combine inventory, equipment, working capital, and commercial real estate collateral.
• Business Expansion Loans A business expansion loan product for funding new locations, product launches, and other growth initiatives, sized from $50,000 to $2,800,000 with competitive rates and the ability to include working capital and equipment financing.
• SBA Loans An SBA loan program through which Bank of South Texas operates as a leading regional SBA lender, offering lower down payments, longer repayment terms, fixed and variable rate options, and locally serviced loans for inventory, materials, and accounts receivable financing.
• Apartment Lending A multifamily property lending product providing term financing with fixed- and adjustable-rate options for building, purchasing, or equity borrowing on apartment properties, characterized by fast local decisions, one-time closings, no hidden fees, and a streamlined closing process.
• Floor Plan Lending A floor plan inventory-financing product that enables businesses to purchase additional stock, expand product lines, and obtain bulk purchase discounts by financing inventory purchases without upfront cash.
• Owner Occupied Commercial Financing A commercial real estate financing product for acquiring, building, improving, or refinancing owner-occupied commercial properties, featuring competitive fixed or adjustable rates, flexible amortizations, local decision-making, and one-time closings on construction-to-permanent projects.
• Clover Point-of-Sale Systems A Clover point-of-sale solution from Fiserv offered to business banking customers, including Clover Go, Compact, Flex, Mini, Station Solo, Station Duo, Kiosk, and Kitchen Display System hardware, with software for inventory management, employee scheduling, payroll, loyalty programs, and Clover Capital working-capital financing.
• Mobile Banking A mobile banking app (powered by TouchBanking from Fiserv) that enables customers to view balances, transfer funds, view check images, pay bills, and deposit checks via mobile capture, available on iOS and Android.
• Online Banking A web-based online banking service that allows customers to view account balances and history, transfer funds, cancel checks, view check images, access e-statements, pay bills online, and configure eAlerts for withdrawals, deposits, payments, and balance notifications.
• Deposit Essentials (Online Account Opening) An online account opening platform (powered by Fiserv) that enables consumers to open consumer checking, savings, and CD accounts from home without visiting a branch.

Quantifiable outcome

• Construction loans can close in as few as 30 days with streamlined application process and e-signature capabilities
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

Feature6 records

Partnerships

Four partnerships are on record, tiered core.

• FiservcoreTechnology or IntegrationFiserv provides the core technology infrastructure for Bank of South Texas's online and mobile banking through its TouchBanking platform, as well as Clover point-of-sale systems for merchant payment processing. The Deposit Essentials online account opening platform is also powered by Fiserv. This is a foundational technology partnership underpinning the bank's digital banking capabilities.
• AllpointcoreTechnology or IntegrationAllpoint provides the surcharge-free ATM network access for Bank of South Texas customers, giving access to over 55,000 ATMs worldwide. This partnership ensures customers have widespread fee-free cash access at retail locations across the U.S.
• MastercardcoreTechnology or IntegrationMastercard provides the payment network infrastructure for Bank of South Texas's personal and business credit cards and debit cards. Cards include Mastercard benefits such as rental car insurance, global services, ID theft protection, travel and lifestyle services, and mobile payment support.
• Clover (Fiserv)coreTechnology or IntegrationClover from Fiserv provides a complete point-of-sale ecosystem for business customers including hardware (Clover Go, Compact, Flex, Mini, Station Solo/Duo, Kiosk, Kitchen Display System) and business management applications. Clover Capital offers working capital to merchants based on future credit card sales.

Scale indicators4 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• International Bank of Commerce (IBC Bank): Majority-owned by International Bancshares Corporation and headquartered in the Rio Grande Valley (Laredo), IBC is the most direct geographic peer to Bank of South Texas, competing head-to-head for consumer deposits, SBA loans, commercial real estate, and small-business banking across the same South Texas footprint.
• PlainsCapital Bank: Texas community bank subsidiary of Hilltop Holdings, providing commercial banking, SBA lending, and treasury management across Texas — a step larger than Bank of South Texas but operating with a similar community-bank playbook in overlapping Texas metros.
• Falcon International Bank: Laredo-based community bank with strong South Texas presence offering consumer and commercial banking products including SBA and commercial real estate lending — directly comparable in size, geography, and product mix to Bank of South Texas.
• Lone Star National Bank: Pharr-headquartered community bank operating across the Rio Grande Valley with similar personal/business banking, SBA lending, and construction financing — a direct competitor serving substantially the same customer segments in the same geography.

Broad incumbents

• Cadence Bank: Mid-sized regional bank with Texas operations (including Houston/San Antonio and growing South Texas presence) offering commercial, SBA, and consumer banking — overlapping product set and target segments with Bank of South Texas at a larger scale.
• Frost Bank: Large Texas-based regional bank with deep San Antonio/Rio Grande Valley presence offering consumer, business, and wealth banking — competes directly for the same retail and small-business customers but at materially greater scale.
• BOK Financial (Bank of Texas): Large regional bank with a significant Texas commercial banking franchise including CRE, SBA, and treasury management — competes with Bank of South Texas for larger commercial relationships in South Texas markets.
• Texas Capital Bank: Texas-headquartered commercial bank focused on middle-market and SMB lending with strong SBA and CRE capabilities — competes for the same commercial and SBA relationships in South Texas from a much larger balance sheet.
• Prosperity Bancshares: One of the largest Texas community banking franchises with extensive branch coverage including South Texas — competes for the same deposit and small-business lending relationships with much greater scale and operating leverage.

Regional players

• Veritex Community Bank: Dallas-based Texas community bank with Houston and broader Texas operations focused on commercial and SBA lending — comparable business model and product mix, serving an adjacent (rather than overlapping) Texas geography.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/bank-of-south-texas

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

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 Bank of South Texas