Letter from the President

Statement from the President of Lone Star National Bank.

Customers of Lone Star National Bank and Members of the Rio Grande Valley and San Antonio Communities:

I want to take a few moments to address you directly in light of the recent failures of Silicon Valley Bank (SVB) and Signature Bank, and the resulting uncertainty regarding the well-being of a small number of other financial institutions across the United States and the globe.

It is important to understand that problems faced by these financial institutions were caused by, to a large extent, inadequate portfolio management by these Banks. Upon the failure of these Banks, their customers were understandably concerned about access to their deposits. The Federal Deposit Insurance Corporation (FDIC) insures all accounts up to $250,000.00. On Monday, the Federal Government took additional steps to ensure that all customers of the financial institutions dealing with these issues would have access to their deposits, even deposits in excess of the FDIC insured amount of $250,000.00. Situations like this, no matter how isolated, understandably cause uncertainty in the stock market and the financial markets, and such news tends to consume many news cycles.

At Lone Star National Bank, the Board of Directors and I lead a team of extremely experienced financial professionals. We understand the current economic climate and how it is impacted by the Federal Reserve’s recent and continued actions related to interest rates. The portfolios of Lone Star National Bank are being properly managed and Lone Star National Bank is in exceptional health. Lone Star National Bank continues to be a pillar of the financial community and we can be trusted.

I want to personally assure each and every one of you that Lone Star National Bank continues to be strong, safe, and secure. In the midst of the recent developments related to other financial institutions, you can remain confident that we will always be here to assist you with your financial needs. We remain committed to always protecting your deposits and to managing our financial resources in a responsible manner.