Nestled in the heart of Texas, SouthStar Bank has been a pillar of community banking for more than a century. With a strong emphasis on local decision-making, community involvement, and employee development, SouthStar Bank sets itself apart from larger financial institutions by fostering personal relationships and providing customized financial solutions.
As marketing manager Keely McCarthy shares, the bank’s philosophy is simple: “We know you by your name, not a number.” This commitment to community and personalized service has made SouthStar Bank a trusted institution for generations.
A Century of Banking Excellence
Founded in 1920, SouthStar Bank has grown from a single location in Moulton, Texas, to 16 full-service branches across Central Texas, along with a loan production office in Austin. What started as a small, family-run bank has evolved into a modern financial institution with more than $1 billion in assets. Despite its growth, the bank remains true to its roots, carrying forward its tradition of community-focused banking.
In 2015, SouthStar Bank unified its various branches—previously operating under names like First Star, Lone Star, and Texas Star Bank—under a single banner. The Raymond G. Schindler family purchased the bank in 1981 and still holds the majority interest today, continuing to guide its mission and values.
Unlike large, impersonal banks, SouthStar Bank prides itself on its commitment to personalized service. According to McCarthy, who recently celebrated five years with the company, the bank’s dedication to knowing each customer personally is a key differentiator.
“You’ll always be greeted by name when you walk into your branch. We strive to welcome everyone, making them feel valued and respected,” she said.
Local decision-making is another standout feature. Because lending decisions are made at the community level, bankers can apply practical, common-sense standards when assessing loans.
“We know the people we serve, and that helps us find solutions tailored to their unique situations,” McCarthy said.
This hands-on approach ensures that customers receive the flexibility and consideration they deserve rather than being reduced to a credit score assessed by an out-of-state decision-maker.
A Strong Commitment to Volunteerism
SouthStar Bank firmly believes in giving back to the communities it serves. Its outreach efforts include sponsorships, donations, and hands-on volunteer work. In 2024, the bank partnered with Foundation Communities in Austin, a nonprofit organization supporting low-income individuals. Employees participated in the foundation’s supper club, providing meals and opportunities for social interaction among residents.
Beyond organized volunteer events, each SouthStar Bank branch is encouraged to support local causes that matter to their communities. Whether sponsoring local school programs, assisting small businesses through the Small Business Administration lending program, or donating to charitable organizations, the bank actively reinvests in its communities.
Investing in Employees
SouthStar Bank’s commitment to its employees is evident in its strong culture of professional development and internal promotion. McCarthy’s personal story is a testament to this philosophy.
She started as a marketing intern in 2020, expecting a six-month position to fulfill her college credit requirements. However, as the pandemic disrupted job markets, SouthStar Bank recognized her potential and extended her internship. Later, pleased with her efforts, the company created a full-time marketing coordinator position for her. After two years, she was promoted to marketing manager.
“They had complete faith in me,” she said. “They told me, ‘Do your best. If it’s too much, just let us know, and we’ll support you.’ That kind of investment in employees is rare.”
This culture of support extends beyond McCarthy’s experience. Her current marketing coordinator was initially a personal banker with a marketing degree. SouthStar Bank recognized his potential and promoted him into his desired field, allowing him to grow within the organization. The bank’s emphasis on developing talent from within ensures that employees feel valued and have opportunities to build long-term careers.
Additionally, SouthStar Bank boasts employees who have been with the institution for decades. One standout example is an employee celebrating 50 years with the bank—a testament to its positive work environment and strong employee retention.
SouthStar Bank’s Role in a Booming Texas Economy
As Central Texas, particularly the Austin area, experiences rapid growth, SouthStar Bank continues to adapt and expand. “Austin has become a mini Silicon Valley,” McCarthy said, referencing the influx of businesses and residents.
To meet the increasing demand, the bank opened a loan production office in Central Austin in 2023 and continues to hire across its branches. Despite its expansion, SouthStar Bank maintains its core values of personalized service and community commitment. “We may be small compared to national banks, but we offer all the modern features while still knowing our customers personally,” McCarthy said.
For those considering banking with SouthStar, McCarthy offers a simple yet powerful message: “Big banks might seem convenient, but they don’t know you. At SouthStar Bank, we build relationships, provide customized solutions, and genuinely care about our customers. Why not have modern banking features and outstanding customer service at the same time?”
Through its century-long legacy, commitment to volunteerism, investment in employees, and dedication to personal banking, SouthStar Bank stands out as a trusted financial institution deeply rooted in its community. Whether assisting customers with mortgages, supporting local businesses, or fostering career growth, SouthStar Bank continues to thrive by putting people first.