Texas State Bank

2201 Sherwood Way

San Angelo, Texas 76901

 

 

Community Reinvestment Act

Public File Viewing and Document Reproduction Policy

 

As laid out by the Community Reinvestment Act, Texas State Bank will adhere to the set guidelines of the act and create a file available to the public, documenting the actions of the bank in regard to CRA related activities.

 

This public file will be located and maintained at the 2201 Sherwood Way location and will be available for public viewing during normal operating hours.

 

As expressed by the act, one complete copy of the public file can and will be provided to the requestor free of charge.  Any additional copies will result in a reproduction fee at a rate of $20.00 per hour (minimum 1 hr charge) and an additional charge of $1.00 per page requested.

 

 

PUBLIC DISCLOSURE

 

June 12, 2023

COMMUNITY REINVESTMENT ACT PERFORMANCE EVALUATION

 

Texas State Bank Certificate Number: 18698

220 I Sherwood Way San Angelo, Texas 7690 I

 

 

 

Federal Deposit Insurance Corporation Division of Depositor and Consumer Protection Dallas Regional Office

600 North Pearl Street, Suite 700

Dallas, Texas 75201

 

 

 

This document is an evaluation of this institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation of the institution. This evaluation is not, nor shou Id it be construed as, an assessment of the financial condition of this institution. The rating assigned to this institution does not represent an analysis, conclusion, or opinion of the federal financial supervisory agency concerning the safety and soundness of this financial institution.

 

 

INSTITUTION RATING

INSTITUTION’S CRA RATING: This institution is rated Satisfactory.

 

An institution in this group has a satisfactory record of helping to meet the credit needs of its assessment area, including low- and moderate-income neighborhoods, in a manner consistent with its resources and capabilities.

 

Texas State Bank’s satisfactory Lending Test and Community Development Test records support the overall Community Reinvestment Act (CRA) rating.

 

The Lending Test is rated Satisfactory.

 

• The loan-to-deposit ratio (LTD) is reasonable (considering seasonal variations and taking into account lending-related activities) given the institution’s size, financial condition, and assessment area credit needs.

 

• A majority of loans are in the institution’s assessment

 

• The geographic distribution of loans reflects reasonable dispersion throughout the assessment area.

 

• The distribution of borrowers reflects, given the demographics of the assessment area, reasonable penetration among businesses of different sizes.

 

• The institution did not receive any CRA-related complaints since the previous evaluation; therefore, this factor did not affect the Lending Test rating.

The Community Development Test is rated Satisfactory.

 

The institution’s community development (CD) performance demonstrates adequate responsiveness to CD needs in its assessment area through CD loans, Qls, and CD services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for CD in the institution’s assessment area.

 

DESCRIPTION OF INSTITUTION

 

Texas State Bank, headquartered in San Angelo, Texas, began operations in 1963. Texas Bancorp, Inc., a one-bank holding company also located in San Angelo, wholly owns Texas State Bank. The institution received a “Satisfactory” rating at its previous Federal Deposit Insurance Corporation (FDIC) Performance Evaluation dated June I, 2020, based on Interagency Small Institution CRA Examination Procedures. The bank became an Intermediate Small Bank effective January I, 2023.

 

Texas State Bank functions as a retail bank with three full-service offices located in San Angelo, Texas. Since the previous evaluation, the bank did not open or close any offices. Merger and

 

acquisition activity since the previous evaluation was limited to the bank purchasing and performing fiduciary services for trust accounts.

 

Texas State Bank primarily focuses on commercial lending, but also offers home mortgage, agricultural, construction, and consumer loans. The institution also offers a variety of standard consumer and commercial deposit products and services. Alternative banking services include remote deposit capture, online and mobile banking, electronic bill pay, merchant credit card processing, and automated teller machines (ATMs) at each branch.

As of March 31, 2023, the institution repo1ted total assets of $414.8 million, total loans of $214.8 million, and total deposits of $350.1 million. As reflected in the following table and consistent with the bank’s lending strategy, commercial loans comprise the largest po1tion of the loan portfolio.

 

Loan Portfolio Distribution as of 3/31/2023
Loan Category	$(000s)	%
Construction, Land Development, and Other Land Loans	30,616	14.2
Secured by Farmland	42,325	19.7
Secured by 1-4 Family Residential Properties	62,699	29.2
Secured by Multifamily (5 or more) Residential Properties	3,954	1.8
Secured by Nonfarm Nonresidential Properties	46,141	21.5
Total Real Estate Loans	185,735	86.4
Commercial and Industrial Loans	22,894	10.6
Agricultural Production and Other Loans to Farmers	2,068	1.0
Consumer Loans	2,990	1.4
Obligations of’ State and Political Subdivisions in the U.S.	1,054	0.5
Other Loans	56	0.1
Lease Financing Receivable (net of unearned income)	0	0.0
Less: Unearned Income	0	0.0
Total Loans	214,797	100.0
Source: Reports of Condition and Income; Due to rounding, totals may not equal 100.00

 

Examiners did not identify any financial, legal, or other impediments that affect the bank’s ability to meet its assessment area’s credit needs.

 

DESCRIPTION OF ASSESSMENT AREA

Texas State Bank designated one assessment area in west central Texas. The San Angelo Metropolitan Statistical Area Assessment Area (San Angelo MSA AA) consists of Torn Green County in its entirety, which represents one of three counties comprising the San Angelo, Texas MSA. The assessment area conforms to CRA regulatory requirements.

Economic and Demographic Data

 

Based on 2020 U.S. Census data, the San Angelo MSA AA contains 27 census tracts with the following income designations: 2 low-income tracts, 6 moderate-income tracts, 9 middle-income

 

7.4

40.7

tracts, 9 upper-income tracts, and I tract without an income classification. The Federal Emergency Management Agency (FEMA) made two major disaster declarations involving Tom Green County during the evaluation period, due to the COVID-19 pandemic and severe winter storms. The following table provides additional demographic and economic data for the assessment area.

 

Demographic Information of the Assessment Aren
Demographic Characteristics	#	Low % of#	Moderate % of#	Middle % 0f #	Upper % of#	NA* % of#
Geographies (Census Tracts) Population by Geography	27 120,003	22.2		33.3 35.6	33.3 42.1	3.7 0.0
		5.6	16.6
Housing Units by Geography	48,785	6.1	16.3	36.8		0.0
Owner-Occupied Units by Geography	28,175	4.2	15.2	33.7	46.9	0.0
Occupied Rental Units by Geography	14,778	8.1	15.9	46.4	29.6	0.0
Vacant Units by Geography	5,832	10.3	23.0	28.0	38.7	0.0
Businesses by Geography	10,711	12.5	12.5	30.0	44.8	OJ

 

Farms by Geography	562	8.0	5.2                25.1	61.7	0.0
Family Distribution by Income Level	27,500	19.2	18.5              21.2	41.1	0.0
Household Distribution by Income Level	0	0.0	0.0                0.0	0.0	0.0
Median Family Income – San Angelo, TX MSA	$71,287		Median Housing Value		S150,836
Families Below Poverty Level	8.2%		Median Gross Rent		$896

Source: 2020 U.S. Census Data and 2022 D& B Data. Due to rounding. Totals may not equal I00. 0.

(*) The NA category consists of geographies that have not been assigned an income classification.

 

Major employers in the San Angelo MSA AA include Goodfellow Air Force Base, Shannon Health System, San Angelo Independent School District, and Angelo State University. Data obtained f^rom the U.S. Bureau of Labor Statistics indicates the December 2022 unemployment rate was 3.0 percent for Tom Green County in comparison to the State of Texas rate of 3.9 percent and the national rate of 3.5 percent.

Competition

 

The assessment area contains a relatively low level of competition f^rom other chartered banks based on its population. According to the FDIC Deposit Market Share data as of June 30, 2022, 14 financial institutions operate 25 offices within the bank’s assessment area. Of these institutions, Texas State Bank ranked third with an 11.6 percent deposit market share. Credit unions as well as mortgage and finance companies also compete for loans in the area.

Community Contact

Examiners contacted a community member to help assess the current economic conditions, community credit needs, and potential opportunities for bank involvement in the area. A contact knowledgeable of the area’s economic, demographic, and business environments noted that the area’s economy remained resilient despite the global pandemic. The contact noted the area’s economy benefits f^rom a variety of industry sectors and a relatively healthy job market. According

 

 

to the contact, lending opportunities for financial institution include small business lending as well as participation in larger projects given continued manufacturing expansion in the area. The contact indicated that local financial institutions are actively involved in the community and demonstrate responsiveness to the area’s credit needs.

 

Credit and Community Development Needs and Opportunities

 

Consistent with other metropolitan areas, examiners concluded that the assessment area includes a variety of credit needs, including small business, small farm, and home mortgage loans.

Information from the community contact, bank management, and demographic and economic data supports this conclusion.

 

With respect to the area’s CD needs, examiners considered that 37.7 percent of the area’s families report either low or moderate incomes. These characteristics typically suggest a higher need for activities that aid in providing community services targeted to these individuals in addition to affordable housing. Other CD needs exist regarding activities for economic development as stated by the community contact and supported by D&B Data, which shows that 86.2 percent of the 10,711 businesses in the assessment area report gross annual revenue of $1million or less.

 

SCOPE OF EVALUATION

General Information

 

This evaluation covers the period from June 1, 2020, to the current evaluation dated June 12, 2023. Examiners used Interagency Intermediate Small Institution Examination Procedures to evaluate the bank’s performance. These procedures include two tests: Lending Test and Community Development Test. Refer to the Appendices for information on each test.

 

Activities Reviewed

 

Based on the bank’s business strategy, assessment area’s credit needs, and volume of loans originated during the evaluation period, examiners determined that small business loans represent the bank’s major product line. No other loan types typically reviewed for CRA represent a major product line; therefore, this evaluation does not include a review of them as they would not materially affect the conclusions or ratings. Although agricultural loans comprise 20.4 percent of loans originated or purchased in 2022 by dollar volume, they represent just 7.5 percent of total loans by number. Furthermore, examiners determined that only 23 loans totaling $3.9 million are considered small farm loans. As a result, small farm loans are not considered a major product line.

 

Loans Originated or Purchased
Loan Category	$(000s)	%	#	%
Construction and Land Development	37,362	26.4	62	13.4
Secured by Farmland	25,056	17.7	19	4.1
Secured by 1-4 Family Residential Properties	19,488	13.8	103	22.2
Multi-Family (5 or more) Residential Properties	0	0.0	0	0.0
Commercial Real Estate Loans	25,070	17.7	34	7.3
Commercial and Industrial Loans	28,429	20.1	I 19	25.7
Agricultural Loans	3,769	2.7	16	3.4
Consumer Loans	2,342	l.6	111	23.9
Other Loans	0	0.0	0	0.0
Total Loans	141,516	100.0	464	100.0
So11rce: 2022 Bank Data. Due to rounding. totals may note equal 100.0.

 

Examiners evaluated the universe of 141 small business loans totaling $22.2 million originated or purchased between January I, 2022, and December 3 l, 2022. To evaluate borrower profile performance, examiners selected a sample of 47 small business loans totaling $7.2 million originated in the assessment area. The 2022 D&B data provided a standard of comparison for the small business loans.

Fu1thermore, while examiners reviewed both the number and dollar volume of loans and presented both figures throughout the evaluation, examiners emphasized performance by number of loans when conducting the geographic distribution and borrower profile analyses since the number of loans better indicates the number of businesses served.

For the Community Development Test, examiners reviewed bank provided data on CD loans, Qls, and CD services since the prior CRA evaluation dated June I, 2020. The evaluation of Qls also considers the book value of prior period Qls that remain outstanding as of this evaluation’s date.

CONCLUSIONS ON PERFORMANCE CRITERIA

LENDING TEST

Texas State Bank demonstrated a satisfactory record regarding the Lending Test. Reasonable records regarding the LTD ratio, geographic distribution, and borrower profile primarily support this conclusion. Additionally, the bank originated a majority of loans inside its assessment area.

 

Loan-to-Deposit Ratio

The LTD ratio is reasonable (considering seasonal variations and taking into account lending­ related activities) given the institution’s size, financial condition, and assessment area credit needs. For the past 12 quarters since the previous evaluation, the bank recorded a 54.1 percent average LTD ratio. The bank’s quarterly, net LTD ratio ranged from a low of 49.7 percent on Marcli 31, 2021, to a high of 60.8 percent on March 31, 2023, with an overall increasing trend for the review period.

 

Examiners compared the bank’s average net LTD ratio to three other financial institutions with somewhat similar lending focus, geographic location, and asset size. The following table shows that Texas State Bank lands between the comparable banks’ average, net LTD ratios.

 

Loan-to-Deposit (LTD) Ratio Comparison
Bank	Total Assets as of 3/31/2023 ($000s)	Average Net LTD Ratio (%)
Texas State Bank, San Angelo, TX	414,837	54.1
Citizens State Bank, Miles, TX	216,034	77.7
The First National Bank of Mertzon, Mertzon, TX	567,562	13.5
The First National Bank of Sterling City, Sterling City, TX	250,284	13.2
Source: Reports of Condition and Income 6/30/2020-3/31/2023.

 

Assessment Area Concentration

A majority of loans are in the institution’s assessment area. As reflected in the following table, Texas State Bank originated a substantial majority of small business by number and a majority by dollar volume inside the assessment area.

 

Lending Inside and Outside of the Assessment Arca
Loan Category	Number of Loans					Dollar Amount of Loans $(000s)
	Inside		Outside		Total	Inside		Outside		Totril
	#	%	#	%	#	$	%	$	%	$(000s)
Small Business	128	90.8	13	9.2	141	19,179	86.4	3,027	13.6	22,206
Source: 2022 Bank Data.

 

Geographic Distribution

The geographic distribution of loans reflects reasonable dispersion throughout the San Angelo MSA

1. AA. A reasonable record regarding small business loans supports this

Small Business Loans

The geographic distribution of small business loans reflects reasonable dispersion in the San Angelo MSA AA. A reasonable record in low-income census tracts outweighs an excellent record in moderate-income census tracts to suppo1t this conclusion. The following table shows that the bank’s level of lending in low-income geographies exceeds demographic data by 2.3 percentage points, reflecting reasonable performance. The table further shows that the bank’s level of lending in moderate-income geographies exceeds demographic data by 11.7 percentage points, reflective of excellent performance.

 

Geographic Distribution of Small Business Loans
Tract Income Level	% of Businesses	#	%	$(000s)	%
Low	12.5	19	14.8	3,193	16.6
Moderate	12.5	31	24.2	5,365	28.0
Middle	30.0	35	27.3	2,956	15.4
Upper	44.8	43	33.6	7,665	40.0
Not Available	0.3	0	0.0	0	0.0
Total	100.0	128	100.0	19,179	I 00.0
Source: 2022 D&B Data; 2022 Bank Data. Due to rounding. totals may not equal 100.0.

 

Borrower Profile

 

The distribution of borrowers reflects, given the demographics of the assessment area, reasonable penetration among businesses of different sizes. A reasonable record regarding small business loans supports this conclusion.

 

Small Business Loans

The distribution of borrowers reflects reasonable penetration among businesses of different sizes. The bank’s overall level of lending to businesses with gross annual revenue of $1 million oi· less supports this conclusion. The following table shows that the bank originated eight out of every ten small business loans to businesses with gross annual revenue of $1 million or less, reflecting reasonable performance.

 

Detailed Distribution of Small Business Loans by Gross Annual Revenues
Gross Revenue Level	% of Businesses	#	%	$(000s)	%
< $100,000	61.2	11	23.4	1,351	18.7
$100,000 – $249,999	17.3	10	21.3	1,352	18.7
$250,000 – $499,999	5.0	9	19.1	1,772	24.6
$500,000 – $1,000,000	2.7	8	17.0	1,484	20.6
Subtotal<= $1,000,000	86.2	38	80.8	5,959	82.6
>$1,000,000	3.4	9	19.1	1,257	17.4
Revenue Not Available	I0.4	0	0.0	0	0.0
Total	100.0	47	100.0	7,216	I 00.0
Source: 2022 D&B Data: 2022 Bank Data. Due to rounding, totals may not equal 100.0.

 

Response to Complaints

 

The institution did not receive any CRA-related complaints since the previous evaluation; therefore, this criterion did not affect the Lending Test rating.

 

COMMUNITY DEVELOPMENT TEST

 

Texas State Bank’s CD performance demonstrates adequate responsiveness to CD needs in its assessment area through CD loans, Qls, and CD services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for CD in the institution’s assessment area. In addition, examiners considered the limited time during the review period for which the bank was subject to CD requirements under the Community Development Test. The totals, as applicable, include activities benefitting a broader statewide or regional area since examiners concluded that the institution proved responsive to needs and opportunities in its assessment areas.

 

Community Development Loans

 

Texas State Bank originated 145 CD loans totaling $3.8 million during the evaluation period. This adequate level of activity represents 1.0 percent of average total assets of $383.8 million and 2.1 percent or average net loans of$ I84.7 million since the prior CRA evaluation. Further, the CD loans proved adequately responsive to the area’s needs given that they promoted economic development and supported affordable housing throughout the assessment area, both of which represent identified CD needs. The following table illustrates the bank’s CD lending activity by year and purpose.

 

Community Development Lending
Activity Year	Affordable Housing		Community Services		Economic Development		Revitalize or Stabilize		Totals
	#	$(000s)	#	S(000s)	#	S(OOOs)	#	S(OOOs)	#	S(OOOs)
2020	0	0	0	0	0	0	0	0	0	0
2021	I	1,500	0	0	143	2,194	0	0	144	3,694
2022	I	107	0	0	0	0	0	0	I	107
YTD 2023	0	0	0	0	0	0	0	0	0	0
Total	2	1,607	0	0	143	2,194	0	0	145	3,801
Source: Bank Data.

The following table shows the distribution of CD loans by assessment area and purpose.

 

Community Development Lending by Assessment Aren
Assessment Aren	Affordable Housing		Community Services		Economic Development		Revitalize or Stabilize		Totals
	#	$(000s)	#	S(OOOs)	#	$(000s)	#	$(000s)	#	$(000s)
San Angelo MSA AA	2	1,607	0	0	118	1,781	0	0	120	3,388
Statewide/Regional	0	0	0	0	25	413	0	0	25	413
Total	2	1,607	0	0	143	2,194	0	0	145	3,801
Source: Bank Data.

 

The following points highlight examples of the bank’s CD loans.

 

• Affordable Housing-The bank participated $1.5 million for an apartment complex that provides affordable housing in the San Angelo MSA AA. Of the 60-units, the Department of Housing and Urban Development subsidized 48 apa11ments to provide affordable housing for low- and moderate-income individuals.

 

• Economic Development-The bank originated 143 loans totaling nearly $2.2 million to small businesses in and near the San Angelo MSA AA through the Small Business Administration’s Paycheck Protection Program. The loans promote economic development by financing entities that meet the size eligibility standards of the regulation and by supporting permanent job creation, retention, or improvement for low- or moderate-income persons.

 

Qualified Investments

Texas State Bank made use of 59 Qls totaling $17.2 million as seen in the following tables. The excellent dollar volume equates to 4.5 percent of average total assets and 13.4 percent of average securities of $127.9 million since the prior evaluation. The following tables indicate that nearly all of the Qls supported activities targeting community services toward low- and moderate-income individuals. These efforts demonstrate the bank’s appropriate responsiveness to an identified CD need. The following table illustrates the bank’s Qls by year and purpose.

 

Qualified Investments
Activity Year	Affordable Housing		Community Services		Economic Development		Revitalize or Stabilize		Totals
	#	$(OOOs)	#	$(OOOs)	#	$(OOOs)	#	S(OOOs)	#	S(00Os)
Prior Period	0	0	22	10,768	0	0	0	0	22	I 0,768
2020	0	0	6	3,645	0	0	0	0	6	3,645
2021	0	0	5	2,496	0	0	0	0	5	2,496
2022	0	0	0	0	0	0	0	0	0	0
YTD 2023	0	0	I	222	0	0	0	0	I	222
Subtotal	0	0	34	17,13I	0	0	0	0	34	17,131
Qualified Grants & Donations	4	7	19	75	0	0	2	10	25	92
Total	4	7	53	17,206	0	0	2	10	59	17,223
Source: Bank Data.

 

The following table shows the distribution of Qls by assessment area and purpose.

 

Qualified Investments by Assessment Area
Assessment Area	Affordable Housing		Community Services		Economic Development		Revitalize or Stabilize		Totals
	#	$(000s)	#	$(000s)	#	$(000s)	#	$(000s)	#	$(000s)
San Angelo MSA AA	4	7	32	8,253	0	0	2	10	38	8,270
Statewide/Regional	0	0	21	8,953	0	0	0	0	21	8,953
Total	4	7	53	17,206	0	0	2	10	59	17,223
Source: Bank Data.

 

The following points highlight examples of the bank’s Qis.

 

• Community Services-The bank invested in 13 bonds that benefit local school districts within the San Angelo MSA AA in which a majority of the students are economically disadvantaged according to the Texas Education Agency.

 

• Revitalize or Stabilize – During the review period, the bank donated $10,000 to a local organization for its home rehabilitation program. The program provides light rehabilitation and repairs for low-income and senior homeowners in San Angelo and surrounding towns.

 

Community Development Services

 

The following table shows the institution provided 28 instances of financial expertise or technical assistance to community development-related organizations in the assessment area during the evaluation period. The table also shows that a majority of the services benefited organizations providing community services targeted to low- and moderate-income individuals, which demonstrates the bank’s adequate responsiveness to an identified need in the assessment area. The activities also proved responsive, although to a lesser extent, to identified needs of affordable housing and economic development. The following table illustrates the bank’s CD services by year and purpose.

 

Community Development Services
Activity Year	Affordable Housing	Community Services	Economic Development	Revitalize or Stabilize	Totals
	#	#	#	#	#
2020	I	3	I	0	5
2021	2	5	I	0	8
2022	2	6	2	0	10
YTD 2023	2	2	I	0	5
Total	7	16	5	0	28
Source: B”11k Oma.

 

The following points highlight examples of the bank’s CD services.

 

°     Community Services – A bank employee serves on the Board and helps with operations and budgeting for a youth organization targeted to low- and moderate -income individuals.

 

o Economic Development-An officer serves on the Board of a local organization that promotes economic development by supporting permanent job creation, retention, or improvement for low- or moderate-income persons or geographies.

 

In addition, the retail banking services benefit low- and moderate-income individuals with one full­ service branch and one ATM located in a moderate-income census tract. Additionally, Texas State Bank provides alternative delivery systems such as remote deposit capture, online and mobile banking, and electronic bill pay that help avail the bank’s services to low- and moderate-income individuals and geographies across all portions of the assessment area.

 

DISCRIMINATORY OR OTHER ILLEGAL CREDIT PRACTICES REVIEW

The bank’s compliance with the laws relating to discrimination and other illegal credit practices was reviewed, including the Fair Housing Act and the Equal Credit Opportunity Act. Examiners did not identify any discriminatory or other illegal credit practices.

 

APPENDICES

 

INTERMEDIATE SMALL BANK PERFORMANCE CRITERIA

 

Lending Test

 

The Lending Test evaluates the bank’s record of helping to meet the credit needs of its assessment area(s) by considering the following criteria:

1. I) The bank’s loan-to-deposit ratio, adjusted for seasonal variation, and, as appropriate, other lending-related activities, such as loan originations for sale to the secondary markets, community development loans, or qualified investments;

• The percentage of loans, and as appropriate, other lending-related activities located in the bank’s assessment area(s);
• The geographic distribution of the bank’s loans;
• The bank’s record of lending to and, as appropriate, engaging in other lending-related activities for borrowers of different income levels and businesses and farms of different sizes; and
• The bank’s record of taking action, if warranted, in response to written complaints about its performance in helping to meet credit needs in its assessment area(s).

 

Community Development Test

 

The Community Development Test considers the following criteria:

1. I) The number and amount of community development loans;

• The number and amount of qualified investments;
• The extent to which the bank provides community development services; and
• The bank’s responsiveness through such activities to community development lending, investment, and service needs.

 

GLOSSARY

Aggregate Lending: The number of loans originated and purchased by all reporting lenders in specified income categories as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the metropolitan area/assessment area.

 

American Community Survey (ACS): A nationwide United States Census survey that produces demographic, social, housing, and economic estimates in the form of five-year estimates based on population thresholds.

 

Area Median Income: The median family income for the MSA, if a person or geography is located in an MSA; or the statewide nonmetropolitan median family income, if a person or geography is located outside an MSA.

 

Assessment Area: A geographic area delineated by the bank under the requirements of the Community Reinvestment Act.

Census Tract: A small, relatively permanent statistical subdivision of a county or equivalent entity. The primary purpose of census tracts is to provide a stable set of geographic units for the presentation of statistical data. Census tracts generally have a population size between 1,200 and 8,000 people, with an optimum size of 4,000 people. Census tract boundaries generally follow visible and identifiable features, but they may follow nonvisible legal boundaries in some instances. State and county boundaries always are census tract boundaries.

Combined Statistical Area (CSA): A combination of several adjacent metropolitan statistical areas or micropolitan statistical areas or a mix of the two, which are linked by economic ties.

Community Development: For loans, investments, and services to qualify as community development activities, their primary purpose must:

(I) Suppo1t affordable housing for low- and moderate-income individuals;

• Target community services toward low- and moderate-income individuals;
• Promote economic development by financing small businesses or farms; or
• Provide activities that revitalize or stabilize low- and moderate-income geographies, designated disaster areas, or distressed or underserved nonmetropolitan middle-income geographies.

Community Development Corporation (CDC): A CDC allows banks and holding companies to make equity type of investments in community development projects. Institution CDCs can develop innovative debt instruments or provide near-equity investments tailored to the development needs of the community. Institution CDCs are also tailored to their financial and marketing needs. A CDC may purchase, own, rehabilitate, construct, manage, and sell real prope1ty. Also, it may make equity or debt investments in development projects and in local businesses. The CDC activities are expected to directly benefit low- and moderate-income groups, and the investment dollars should not represent an undue risk on the banking organization.

 

Community Development Financial Institutions (CDFIs):  CDFIs are private intermediaries (either for profit or nonprofit) with community development as their primary mission. A CDFI facilitates the flow of lending and investment capital into distressed communities and to individuals who have been unable to take advantage of the services offered by traditional financial institutions. Some basic types of CDFIs include community development banks, community development loan funds, community development credit unions, micro enterprise funds, and community development venture capital funds.

 

A certified CDFI must meet eligibility requirements. These requirements include the following:

• Having a primary mission of promoting community development;
• Serving an investment area or target population;
• Providing development services;
• Maintaining accountability to residents of its investment area or targeted population through representation on its governing board of directors, or by other means;
• Not constituting an agency or instrumentality of the United States, of any state or political subdivision of a state.

 

Community Development Loan: A loan that:

( l) Has as its primary purpose community development; and

(2) Except in the case of a wholesale or limited purpose institution:

• Has nor been reported or collected by the institution or an affiliate for consideration in the institution’s assessment area as a home mortgage, small business, small farm, or consumer loan, unless it is a multifamily dwelling loan (as described in Appendix A to Part 203 of this title); and
• Benefits the institution’s assessment area(s) or a broader statewide or regional area including the institution’s assessment area(s).

 

Community Development Service:  A service that:

(I) Has as its primary purpose community development;

• Is related to the provision of financial services; and
• Has not been considered in the evaluation of the institution’s retail banking services under§ 345.24(d).

 

Consumer Loan(s): A Ioan(s) to one or more individuals for household, family, or other personal expenditures. A consumer loan does not include a home mortgage, small business, or small farm loan. This definition includes the following categories: motor vehicle loans, credit card loans, home equity loans, other secured consumer loans, and other unsecured consumer loans.

 

Core Based Statistical Area (CBSA): The county or counties or equivalent entities associated with at least one core (urbanized area or urban cluster) of at least I 0,000 population, plus adjacent counties having a high degree of social and economic integration with the core as measured through commuting ties with the counties associated with the core. Metropolitan and Micropolitan Statistical Areas are the two categories of CBSAs.

 

Distressed Middle-Income Nonmetropolitan Geographies: A nonmetropolitan middle-income geography will be designated as distressed if it is in a county that meets one or more of the following triggers:

(I) An unemployment rate of at least 1.5 times the national average;

• A poverty rate of 20 percent or more; or
• A population loss of IO percent or more between the previous and most recent decennial census or a net migration loss of 5 percent or more over the 5-year period preceding the most recent census.

 

Family: Includes a householder and one or more other persons living in the same household who are related to the householder by birth, marriage, or adoption. The number of family households always equals the number of families; however, a family household may also include non-relatives living with the family. Families are classified by type as either a married-couple family or other family. Other family is further classified into “male householder” (a family with a male householder and no wife present) or “female householder” (a family with a female householder and no husband present).

 

FFIEC-Estimated Income Data: The Federal Financial Institutions Examination Council (FFIEC) issues annual estimates which update median family income from the metropolitan and nonmetropolitan areas. The FFIEC uses American Community Survey data and factors in information from other sources to arrive at an annual estimate that more closely reflects current economic conditions.

 

Full-Scope Review: A full-scope review is accomplished when examiners complete all applicable interagency examination procedures for an assessment area. Performance under applicable tests is analyzed considering performance context, quantitative factors (e.g, geographic distribution, borrower profile, and total number and dollar amount of investments), and qualitative factors (e.g, innovativeness, complexity, and responsiveness).

 

Geography: A census tract delineated by the United States Bureau of the Census in the most recent decennial census.

 

Home Mortgage Disclosure Act (HMDA): The statute that requires certain mo11gage lenders that do business or have banking offices in a metropolitan statistical area to file annual summary reports of their mortgage lending activity. The reports include such data as the race, gender, and the income of applicants; the amount of loan requested; and the disposition of the application (approved, denied, and withdrawn).

 

Home Mortgage Loans: Includes closed-end mo1igage loans or open-end line of credits as defined in the HMDA regulation that are not an excluded transaction per the HMDA regulation.

Housing Unit: Includes a house, an apartment, a mobile home, a group of rooms, or a single mom that is occupied as separate living quarters.

 

Limited-Scope Review: A limited scope review is accomplished when examiners do not complete all applicable interagency examination procedures for an assessment area.

 

Performance under applicable tests is often analyzed using only quantitative factors (e.g, geographic distribution, borrower profile, total number and dollar amount of investments, and branch distribution).

 

Low-Income: Individual income that is less than 50 percent of the area median income, or a median family income that is less than 50 percent in the case of a geography.

Low Income Housing Tax Credit: The Low-Income Housing Tax Credit Program is a housing program contained within the Internal Revenue Code of 1986, as amended. It is administered by the U.S. Department of the Treasury and the Internal Revenue Service. The U.S. Treasury Department distributes low-income housing tax credits to housing credit agencies through the Internal Revenue Service. The housing agencies allocate tax credits on a competitive basis.

Developers who acquire, rehabilitate, or construct low-income rental housing may keep their tax credits. Or, they may sell them to corporations or investor groups, who, as owners of these properties, will be able to reduce their own federal tax payments. The credit can be claimed annually for ten consecutive years. For a project to be eligible, the developer must set aside a specific percentage of units for occupancy by low-income residents. The set-aside requirement remains throughout the compliance period, usually 30 years.

Market Share: The number of loans originated and purchased by the institution as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the metropolitan area/assessment area.

Median Income: The median income divides the income distribution into two equal parts, one having incomes above the median and other having incomes below the median.

 

Metropolitan Division (MD): A county or group of counties within a CBSA that contain(s) an urbanized area with a population of at least 2.5 million. A MD is one or more main/secondary counties representing an employment center or centers, plus adjacent counties associated with the main/secondary county or counties through commuting ties.

Metropolitan Statistical Area (MSA): CBSA associated with at least one urbanized area having a population of at least 50,000. The MSA comprises the central county or counties or equivalent entities containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county or counties as measured through commuting.

 

Middle-Income: Individual income that is at least 80 percent and less than 120 percent of the area median income, or a median family income that is at least 80 and less than 120 percent in the case of a geography.

Moderate-Income: Individual income that is at least 50 percent and less than 80 percent of the area median income, or a median family income that is at least 50 and less than 80 percent in the case of a geography.

Multi-family: Refers to a residential structure that contains five or more units.

 

 

Nonmetropolitan Area (also known as non-MSA): All areas outside of metropolitan areas. The definition of nonmetropolitan area is not consistent with the definition of rural areas. Urban and rural classifications cut across the other hierarchies. For example, there is generally urban and rural territory within metropolitan and nonmetropolitan areas.

 

Owner-Occupied Units: Includes units occupied by the owner or co-owner, even if the unit has not been fully paid for or is mo11gaged.

 

Qualified Investment: A lawful investment, deposit, membership share, or grant that has as its primary purpose community development.

 

Rated Area: A rated area is a state or multistate metropolitan area. For an institution with domestic branches in only one state, the institution’s CRA rating would be the state rating. If’an institution maintains domestic branches in more than one state, the institution will receive a rating for each state in which those branches are located. If an institution maintains domestic branches in two or more states within a multistate metropolitan area, the institution will receive a rating for the multistate metropolitan area.

Rural Area: Territories, populations, and housing units that are not classified as urban.

Small Business Investment Company (SBIC): SBICs are privately-owned investment companies which are licensed and regulated by the Small Business Administration (SBA). SBICs provide long-term loans and/or venture capital to small firms. Because money for venture or risk investments is difficult for small firms to obtain, SBA provides assistance to SBICs to stimulate and supplement the flow of private equity and long-term loan funds to small companies. Venture capitalists participate in the SBIC program to supplement their own private capital with funds borrowed at favorable rates through SBA ‘s guarantee of SBIC debentures. These SBIC debe11tures are then sold to private investors. An SBIC’s success is linked to the growth and profitability of the companies that it finances. Therefore, some SB ICs primarily assist businesses with significant growth potential, such as new firms in innovative industries. SBICs finance small firms by providing straight loans and/or equity-type investments. This kind of financing gives them partial

ownership of those businesses and the possibility of sharing in the companies’ profits as they grow

and prosper.

Small Business Loan: A loan included in “loans to small businesses” as defined in the Consolidated Report of Condition and Income (Call Report). These loans have original amounts of

$ I million or less and are either secured by nonfarm nonresidential properties or are classified as commercial and industrial loans.

Small Farm Loan: A loan included in “loans to small farms” as defined in the instructions for preparation of the Consolidated Report of Condition and Income (Call Report). These loans have original amounts of $500,000 or less and are either secured by farmland, including farm residential and other improvements, or are classified as loans to finance agricultural production and other loans to farmers.

 

Underserved Middle-Income Nonmetropolitan Geographies: A nonmetropolitan middle­ income geography will be designated as underserved if it meets criteria for population size, density, and dispersion indicating the area’s population is sufficiently small, thin, and distant from a population center that the tract is likely to have difficulty financing the fixed costs of meeting essential community needs.

 

Upper-Income: Individual income that is 120 percent or more of the area median income, or a median family income that is 120 percent or more in the case of a geography.

 

Urban Area: All territories, populations, and housing units in urbanized areas and in places of 2,500 or more persons outside urbanized areas. More specifically, “urban” consists of territory, persons, and housing units in places of 2,500 or more persons incorporated as cities, villages, boroughs (except in Alaska and New York), and towns (except in the New England states, New York, and Wisconsin).

‘Urban” excludes the rural portions of “extended cities”; census designated place of2,500 or more persons; and other territory, incorporated or uninco

 

Public Comments and Complaints

There are currently no written public comments or complaints regarding Texas Banks performance in helping meet the needs of its community.

Bank Services Offered

Texas State Bank
Services Offered
2201 Sherwood Way, 4206 College Hills, 1815 N. Chadbourne
Updated March 2022
Personal Checking:						Trust:
Hometown Secure						Personal Trusts
Hometown Secure Plus						Employee Benefit Accounts
Texas Choice						Cash Management
Money Market						IRA’s
						Estate Administration
Commercial Checking:						Investment Management
Regular						Management of Unique Assets
Econo						Retirement Accounts
NOW
Money Market						Other Services:
						Free Internet Banking
Savings:						Free Internet Bill Pay
Savings accounts						Free Anytime Banking
IRAs						Free E-Statements
CDs						Free Mobile Banking
						Free Remote Deposit Anywhere
Consumer Loans:						Remote Deposit Capture
Personal loans						Cash Management
Reserve Checking						Visa Debit Card
Home Improvement						Safety Deposit Boxes
Auto, Boat and Trailer							3X5X21          $20
Consolidation							3X10X21        $30
Home Mortgages							5X10X21        $35	40
Home Construction							10X10X21      $50
Home Equity							10X35X21      $100
Home Equity Lines of Credit
Simple Home Loan Program						ACH & Direct Deposit
						Credit Cards (third party)
Commercial Loans:						Wire Transfers
Operating Loans						Money Orders
Operating Lines of Credit						Cashiers Checks
Construction and Land Development						Teller Transactions
Agriculture						Overdraft Protection
Real Estate						Identity Protection Service
Equipment and Rolling Stock
Letters of Credit						Investment Centers of America:
						Retirement Planning
						Annuities
						Mutual Funds
						Stocks and Bonds
						Estate Planning
						College Funding
						Life Insurance
						Non-deposit investment offered are:
							Not FDIC insured
							Not guaranteed by the bank
							Subject to loss in value

TEXAS STATE BANK LOCATIONS
325-949-3721 (main switchboard number for all locations)
Address	Tract Code	Tract Income Level
Main Bank – 2201 Sherwood Way	10.00	Middle
Drive-through, 2101 Sherwood Way	10.00	Middle
ATM – 2101 Sherwood Way	10.00	Middle
College Hills Branch – 4206 College Hills Blvd	13.04	Upper
ATM – 4206 College Hills Blvd	13.04	Upper
Lake View Branch – 1815 N. Chadbourne	4.00	Moderate
ATM – 1815 N. Chadbourne	4.00	Moderate
HOURS OF OPERATION
2201 Sherwood Way
Lobby            9:00 am – 5:00 pm Monday – Friday
Drive Thru     7:30 am – 5:30 pm Monday – Friday
8:00 am – 12:00 pm Saturday
Trust Dept      9:00 am – 5:00 pm Monday – Friday
Closed Sunday
4206 College Hills Blvd
Lobby            9:00 am – 5:00 pm Monday – Friday
Drive Thru     7:30 am – 5:30 pm Monday – Friday
8:00 am – 12:00 pm Saturday
1815 N. Chadbourne
Lobby            9:00 am – 5:00 pm Monday – Friday
Drive Thru     7:30 am – 5:30 pm Monday – Friday
8:00 am – 12:00 pm Saturday
Closed Sunday

BRANCHES OPENED OR CLOSED BY THE BANK DURING THE CURRENT YEAR AND EACH OF THE PRIOR TWO CALENDAR YEARS:

None.

ASSESSMENT AREA

 

HOME MORTGAGE DISCLOSURE ACT NOTICE

The Home Mortgage Disclosure Act (HMDA) data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age, and income of applicants and borrowers; and information about loan approvals and denials. These data is available online at the Consumer Financial Protection Bureau’s website https://www.consumerfinance.gov/hmda.   HMDA data for many other financial institutions are also available at this website.