Lone Star National Bank

Early Years and Expansions

Lone Star National Bank opened its first location in January 1983 in Pharr, Hidalgo County with a small team of ten employees with the aim of supporting individuals and small businesses. After meeting success, the bank went on to open more locations throughout the Rio Grande Valley, starting with a banking center in McAllen, Texas in 1994. In August 2000, it opened its first banking center outside of Hidalgo County in Rio Grande City, Texas. This was followed by a location opening in Brownsville, Texas in 2001. LSNB eventually grew to cover markets outside of the Rio Grande Valley by opening its first banking center in Bexar County in San Antonio, Texas in early 2010 with three more centers added; one in 2011 and two in 2013. LSNB currently operates with a team of over 600 individuals in 33 locations in the Rio Grande Valley and San Antonio. In 2016, the Texas Department of Banking placed Lone Star National Bank at 39 out of 100 according to asset size.

Legal issues

Troubled Condition, Consent Orders & Civil Money Penalty The Office of the Comptroller of the Currency (OCC) on April 4, 2015, issued a consent order for a $1 million civil money penalty fine against Lone Star National Bank for violating the Bank Secrecy Act (BSA).[4][5][6] The OCC identified BSA and anti-money laundering (AML) deficiencies with Lone Star National Bank's internal controls, independent audit, suspicious activity reporting, and foreign correspondent banking program. The Bank was already under a consent order from 2012 (2012-160) which required Lone Star National Bank to undertake remedial actions with respect to its BSA/AML program.[7]

An additional consent order (2015-029)[8] was issued on March 31, 2015, in regards to serious deficiencies in Lone Star National Bank's lending practices.[9] This consent order designates Lone Star National Bank as being in "troubled condition."[10][11][12]

Drug Cartel Money Laundering Case

Lone Star National Bank is one of several banks that federal prosecutors have alleged were used by corrupt Mexican politicians and business owners to launder drug cartel money in South Texas.

In a 2013 plea hearing of a Mexican businessman who admitted to laundering money, Assistant U.S. Attorney Julie Hampton said some of the bank’s customers “have been identified as politically exposed persons, and there is nothing indicating that Lone Star National Bank conducted additional customer due diligence regarding the tracking of those millions of dollars.”[13]

Personal Banking

Lone Star National Bank offers standard banking services along with some that are more customer-centric. Customers can enjoy personal and savings accounts, certificates of deposit (CDs), personal and mortgage loans, VISA debit and credit cards and a free app for mobile banking that’s available on iOS and Android devices.

The bank also offers identity theft and fraud alerts, the Lone Star Legacy Club™, which focuses on customers over the age of 50, and youth banking services.

Commercial Banking

Lone Star National Bank has placed equal importance on its business services. Small businesses are offered the same amenities as individuals, along with merchant services, cash management, remote deposits, the GenGold ® Business Partner Program, which “delivers savings and rebates on products and services people use and value most”, and check ordering. The bank also has an international division for foreign customers.

Investments

In an effort to create healthy and stable financial futures for customers, Lone Star National Bank also focuses on investment services for customers. Financial planning, mutual funds, education planning, 401k/profit sharing plans and estate planning are just a few amenities that the bank offers.

Insurance

The bank has also made an effort in going further by providing insurance for both individuals and businesses through its Lone Star Insurance Service initiative. These policies include homeowners insurance, automobile insurance, health insurance, life insurance and more.

Giving Back to the Community

Each December, Lone Star National Bank hosts an annual toy drive for children in the Rio Grande Valley and San Antonio. In an effort to create a strong holiday spirit for donations, the bank's multiple locations decorate Christmas boxes to generate interest and curiosity for the drive. The bank invites all residents of the Rio Grande Valley to visit its locations to drop off unwrapped toys of various types. Toys are donated to the Children's Advocacy Center in Hidalgo County Estrella's House, CASA of Hidalgo County, Monica's and Maggie's House, Sunny Glen Children's Home, Casa de la Divina Misericordia and The Children's Shelter in San Antonio.

Fighting Cancer

Every February, Lone Star National Bank partners with Doctors Hospital at Renaissance to organize the Renaissance Cancer Foundation Gala. Proceeds from the event were donated to the Renaissance Cancer Foundation, which aims to assist both insured and uninsured cancer patients in the Rio Grande Valley. in 2014, more than $200,000 was raised at the event.

LSNB Helps Protect Against Identity Theft

Twice a year, Lone Star National Bank helps protect local businesses and individuals with their Community Shredding Event. LSNB, he Better Business Bureau, and the Lone Star Shredding and Document Storage Facility allow Valley residents to shred documents free of charge at the Lone Star National Bank corporate office located at 3300 North Expressway 83 in Brownsville. Attendees can shred old bank statements, tax records, credit card statements and other confidential records. The event is aimed at reducing identity theft from discarded financial and personal information.