SouthStar Bank

What SouthStar Bank does

SouthStar Bank, S.S.B. is a Texas state-chartered savings bank headquartered in Moulton, Texas, owned by holding company Southern Bancshares, Inc. Established in 1920, the bank operates 16 full-service branches plus one loan production office across Central Texas — concentrated in the Austin metro (Georgetown, Round Rock, Leander, Bee Cave, Southwest Austin, Steiner Ranch) with additional locations in Robertson County, Harker Heights, Gonzales, Shiner, and Brazoria — and holds over $1 billion in assets. It serves both individual consumers and small-to-medium businesses, with a lending franchise specialized in residential mortgage, real estate, and construction lending, complemented by SBA 7a loans (as a Preferred Lender), CRE loans, accounts receivable financing, and the Star Advantage portfolio mortgage program for non-traditional borrowers.

The product suite spans consumer checking (Star Free, Cash Back, Gold Star, Platinum Star), savings (Traditional, Money Market, HSA), CDs, IRA and Self-Directed IRA accounts, personal loans, credit cards (Mastercard Low Rate and Preferred Points), youth accounts, and a full digital banking stack delivered through online banking, a mobile app with check capture, Zelle, SecureAlerts/CardManager, and Zix-encrypted messaging. Commercial offerings include business checking/savings, commercial lending (CRE, SBA, AR financing), treasury management, business credit cards, and a non-deposit mortgage warehousing line for third-party lenders. Distribution is branch-led with a digital self-service channel for account opening; loan decisions are made locally rather than by an out-of-state credit committee.

Revenue is generated primarily through net interest income on the loan portfolio (residential mortgage, construction, CRE, SBA, consumer) plus fee income from overdraft charges, payment processing (Deluxe Merchant Services), credit card interchange, treasury management, and mortgage warehousing. Go-to-market is a hybrid of direct-to-consumer (retail branches and online account opening) and sales-led (loan officers across all locations), with marketing concentrated in community engagement, Facebook/LinkedIn, the SouthStar Bank Insider blog, and customer testimonials.

Name

SouthStar Bank

Legal name

SouthStar Bank, S.S.B.

Website

https://southstarbank.com

Company type

Private

Founded year

1920

Operating status

Operating

Headcount range

101–250 employees

Short description

SouthStar Bank is a Texas state-chartered savings bank with $1B+ in assets, operating 16 branches across Central Texas and serving consumers and SMBs through deposit accounts, residential mortgage, construction, CRE, and SBA lending, plus a mortgage warehousing business.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Savings Institutions and Other Depository Credit Intermediation (52218), Savings Institutions and Other Depository Credit Intermediation (522180), Depository Credit Intermediation (5221)

SIC

Savings Institutions, Not Federally Chartered (6036)

akta.pro primary industry

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

akta.pro secondary industry

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

Keywords

• Community banking services
• Commercial lending
• Residential mortgage loans
• Consumer deposit accounts
• Small business banking

Headquarters

HQ city

Moulton

HQ country

United States

HQ region

North America

Offices16 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

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

Revenue model

1. Interest Income from Lending: Primary revenue stream from residential mortgages, commercial loans, construction loans, personal loans, and SBA loans. The bank holds over $1 billion in assets and specializes in residential mortgage, real estate, and construction lending.
2. Deposit Account Fees: Various fee income from checking accounts, including overdraft fees ($35 per item), minimum balance fees, and other account-related charges
3. Payment Processing Fees: Fees from online payment processing through Deluxe Merchant Services: $1.50 flat fee for ACH/eCheck payments
4. Credit Card Fees: Revenue from credit card products including Mastercard Low Rate Card and Preferred Points Card with annual fees, interest charges, and transaction fees
5. Traditional Banking Services: Revenue from safe deposit boxes, wire transfers, cashier's checks, notary services, and other traditional banking services

Pricing tiers

Go-to-market motion3 records

Distribution channels6 records

Marketing channels6 records

Core offering

SouthStar Bank is a Texas-chartered community bank providing consumer and commercial banking products and services through 16 full-service branches across Central Texas. Core offerings include personal checking, savings, CDs, IRAs, mortgages (conventional, jumbo, VA, construction, and portfolio), personal loans, Mastercard credit cards, online and mobile banking, commercial checking and savings, commercial real estate loans, SBA loans, accounts receivable financing, business credit cards, treasury management, and mortgage warehousing. The bank holds over $1 billion in assets and emphasizes locally-made lending decisions.

Product overview

SouthStar Bank is a Texas-based community bank offering a comprehensive suite of consumer and commercial banking products and services. The consumer offering includes multiple checking account tiers (Star Free, Cash Back, Gold Star, Platinum Star), savings options (Traditional, Money Market, HSA), Certificates of Deposit, IRA accounts including Self-Directed IRA for real estate investing, and various lending products including mortgages (Star Advantage Program for non-traditional borrowers, Traditional, Jumbo, VA, Rural Living), personal loans for vehicles and equipment, student loans via College Ave partnership, and non-recourse IRA loans. Credit products include Mastercard Low Rate and Preferred Points cards. Digital banking services encompass online and mobile banking with check capture, Zelle peer-to-peer payments, bill pay, SecureAlerts, and CardManager. Commercial banking includes business checking and savings, commercial lending (CRE, SBA, AR financing), business credit cards, treasury management, and mortgage warehousing. The bank operates 16 full-service branches across Central Texas with over $1 billion in assets.

Differentiator

Problem solved

Functional benefit

Products and services

• Personal Checking Accounts Tiered consumer checking accounts including Star Free Checking (no monthly fee), Cash Back Checking (10 cents per debit transaction up to $20/month), Gold Star Checking (interest-bearing with $1,000 minimum), Platinum Star Checking (55+ senior-focused), and Stellar Student Checking (ages 13-17). Each tier is designed for individual consumer account holders with different usage patterns and balances.
• Savings and Money Market Accounts Consumer savings products including Traditional Savings, Money Market Savings (higher-yield liquid savings), and Health Savings Accounts (HSA) for individuals with high-deductible health plans. Targets personal savers and those seeking tax-advantaged medical expense funding.
• Certificates of Deposit (CDs) Fixed-rate investment CDs with terms from 6 to 60 months, minimum $1,000 deposit, FDIC insured, with early withdrawal penalty. Available in Traditional and Jumbo options. Targets individual consumers and businesses seeking insured fixed-income deposits.
• IRA and SDIRA Accounts Traditional and Roth IRA accounts plus Self-Directed IRA (SDIRA) accounts allowing investors to expand retirement portfolios into alternative investments such as real estate. Targets individual retirement savers and real estate investors.
• Residential Mortgage Loans Conventional mortgages including Fannie Mae, Freddie Mac, FHA, VA, USDA, and jumbo loan programs with fixed and variable rate options. Also includes VA Mortgage Program (no down payment, no PMI, no minimum credit score for veterans), Rural Living Mortgage Program, and Construction-to-Permanent Financing with one-time close option. Targets homebuyers, veterans, and rural property buyers in Central Texas.
• Star Advantage Program (Portfolio Mortgage) Portfolio/bank-held home loan program designed for unique borrower situations including self-employed individuals, small business owners, those with poor credit, bankruptcy, or nontraditional income sources. Provides common-sense flexibility outside the strict criteria of secondary market loans. Targets non-traditional borrowers who do not qualify for conforming loans.
• Personal Loans Consumer installment loans for vehicles, boats, RVs, tractors, trailers, equipment, and other big-ticket purchases with a pre-approval process. Targets individual consumers seeking financing for personal property acquisitions.
• Non-Recourse IRA Loans Self-directed IRA loans for purchasing income-producing real estate properties. Loans are made in the IRA name with a minimum 40% down payment required, and the borrower's liability is limited (non-recourse). Targets self-directed IRA holders seeking real estate investments.
• H.O.P.E. Loans Home Ownership and Personal Education loan program for qualified borrowers. Targets individuals seeking specialized consumer financing.
• Mastercard Consumer Credit Cards Mastercard Low Rate Card (no annual fee, low introductory APR for six months, competitive ongoing APR, 25-day grace period, EMV chip) and Mastercard Preferred Points Card (no annual fee, one point per dollar up to 10,000 points monthly, redeemable for cash-back, travel, merchandise, and gift cards). Targets individual consumers seeking revolving credit.
• Student Loans (College Ave Referral) Referral partnership with College Ave Student Loans offering undergraduate, graduate, parent, and refinance student loans through easy online application with no fees. SouthStar Bank earns referral fees for loans obtained through this partnership. Targets students and parents seeking education financing.
• Commercial Checking Accounts Business checking accounts with features tailored for commercial customers including analysis checking and merchant services integration. Targets local businesses, entrepreneurs, and commercial enterprises in Central Texas.
• Commercial Savings and Money Market Business savings accounts and commercial money market savings for higher-yield business deposits, plus HSA-for-Employees products for employer-sponsored healthcare savings. Targets businesses and non-profit organizations.
• Commercial Lending (CRE, SBA, AR Financing) Business loans including Commercial Real Estate (CRE) loans for purchasing, refinancing, or developing commercial properties; SBA 7a loans as a preferred SBA lender for business acquisition, working capital, property purchase, and construction; and Accounts Receivable financing (Business Manager) providing working capital based on outstanding invoices. Targets small and medium businesses needing growth capital, real estate, or working capital solutions.
• Business Credit Cards MasterCard business credit cards for commercial customers with various rewards and benefits. Targets business owners seeking revolving commercial credit.
• Treasury Management Services Cash management and treasury services for businesses including remote deposit capture, wire transfers, and ACH services. Targets commercial clients requiring streamlined cash flow operations.
• Mortgage Warehousing Mortgage warehousing services for mortgage lenders providing funding and portfolio management on a national basis (led by EVP and National Sales Manager Billy Fleming). Targets third-party mortgage lenders needing short-term funding lines.
• Non-Profit Checking Specialized checking accounts for community organizations, charities, and non-profit entities requiring organizational banking and deposit management services. Targets non-profit organizations in Central Texas.
• Online and Mobile Banking Platform 24/7 digital banking platform with account access, transaction management, fund transfers, bill pay, check images, spending reports, eStatements, and remote check deposit via the mobile app on iOS and Android. Available as a self-service online account opening platform at open.southstarbank.com. Targets consumer and business account holders.
• Zelle Peer-to-Peer Payments Fast, safe peer-to-peer payment service integrated into online and mobile banking for sending, requesting, and receiving money directly between U.S. bank accounts, typically within minutes. Enrollment through the Bill Pay section. Targets consumer and business account holders.
• Online Bill Pay and Deluxe Merchant Payments Online bill payment service allowing customers to pay bills on-time from anywhere with Quick Pay one-click functionality, plus Deluxe Merchant Services ACH/eCheck payment processing at a $1.50 flat fee per transaction. Targets account holders and online payment users.
• Youth Banking Accounts Stellar Student Checking for ages 13-17 ($25 minimum opening deposit, no minimum balance) and Shooting Star Savings designed to encourage youth saving habits. Targets minors and teenagers.

Quantifiable outcome

• Ranked among Top Austin Mortgage Companies by Austin Business Journal - 170 Austin-area loans totaling $83.35 million plus 121 non-local loans
• +2 more outcomes

Named customers7 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration8 records

Feature5 records

Partnerships

Six partnerships are on record, tiered core and minor.

• ZellecoreTechnology or IntegrationPartnership with Zelle (Early Warning Services, LLC) to provide fast, safe, and easy money transfer capabilities integrated into online and mobile banking platforms. Allows customers to send, request, and receive money with friends, family, and trusted contacts typically within minutes.
• Allpoint ATM NetworkcoreTechnology or IntegrationPartnership providing 55,000 surcharge-free ATMs worldwide. SouthStar Bank customers can access cash withdrawals and banking services at any Allpoint ATM without surcharges.
• ZixcoreTechnology or IntegrationPartnership with Zix, a leading messaging encryption provider, to create a Secure Messaging Portal for secure document and message exchange between customers and bank employees. Uses high-grade data encryption for sensitive communications.
• Deluxe Merchant ServicescoreTechnology or IntegrationPartnership with Deluxe Merchant Services for payment processing. Processes ACH/eCheck payments for loan and other payments with $1.50 flat fee per transaction.
• College Ave Student LoansminorGTM or Marketing PartnerReferral partnership for student loan products. SouthStar Bank refers customers to College Ave for undergraduate, graduate, parent, and refinance student loans. SouthStar Bank may receive referral fees for student loans obtained through these links.
• Frost BankcoreTechnology or IntegrationATM access partnership allowing SouthStar Bank customers to conduct transactions at any Frost Bank branch ATM at no charge.

Scale indicators7 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Broadway Bank: San Antonio-based privately held community bank serving Central and South Texas with consumer, commercial, and SBA lending — closely comparable regional private competitor.
• First Financial Bank (Texas): Texas-focused community bank with full consumer, mortgage, and commercial lending across Central Texas markets including Austin, Waco, and Houston corridors — overlapping footprint with SouthStar.
• Prosperity Bancshares: Large Texas community bank with broad consumer, commercial, and mortgage lending operations across Central and South Texas; closest publicly traded comparable in business model and regional footprint.
• Independent Bank Group: Texas-based community bank holding company with comparable mix of consumer, mortgage, and commercial/SBA lending across North and Central Texas — strong direct peer for SBA-led growth strategy.
• Veritex Holdings: Dallas-headquartered Texas community bank with similar consumer/commercial/SBA mix and active mortgage banking business; comparable scale and Texas-only geographic focus.
• Frost Bank (Cullen/Frost Bankers): Texas-headquartered independent bank with deep Central and South Texas branch presence, full consumer and commercial product suite, and strong SBA and mortgage capabilities — directly comparable to SouthStar's geographic and product positioning (and already a SouthStar ATM partner).
• Happy State Bank (FirstBank): Texas Panhandle-based community bank with strong consumer/mortgage/SBA franchise; comparable privately held community banking model though concentrated further north of SouthStar's footprint.
• Texas Capital Bancshares: Texas-based commercial bank with strong SBA, mortgage, and treasury management offerings; comparable business model orientation toward business banking rather than retail.

Regional players

• Lone Star National Bank: South Texas community bank with similar consumer, commercial, and SBA lending focus; relevant comparable for product mix though primarily operating in the Rio Grande Valley rather than Central Texas.

Broad incumbents

• Cadence Bank: Larger multi-state regional bank with material Texas presence and commercial banking, SBA, and consumer offerings — broader incumbent that competes for the same SMB and CRE relationships.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/SouthStarBank
• LinkedInlinkedin.com/company/southstar-bank

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles22 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 SouthStar Bank