The Bank of San Antonio Founders Raise Millions to Charter Texas’ First New Bank in Years
May 09, 2017
J. Bruce Bugg, Jr.
Chairman of the Board,
The Bank of San Antonio,
Ten years ago, The Bank of San Antonio was founded with $25 million in investments. Those same founders have raised nearly double that capital to charter a new financial institution – the first de novo bank chartered in Texas since 2009.
The San Antonio Business Journal interviewed Chairman J. Bruce Bugg, Jr. on the venture.
The Bank of Austin plans to open its doors this summer along the Congress Avenue corridor, with at least $31 million to loan out, concentrating on business-to-business lending in the greater Austin area.
When the bank was initially formed, its executives had the intention of raising around $40 million in capital. $47 million later, founders have received investments representing a wide variety of business sectors across the city.
Capitalizing on the group's knowledge and success in San Antonio, the bank will provide forward-thinking financial solutions for modern business owners. “The Bank of Austin is going to be a tech-focused bank in terms of our operations and delivery of services,” Bugg told the San Antonio Business Journal. “Business owners and people who work in locally based businesses are too busy nowadays to leave their office, get in a car and drive all the way to the bank.”
The bank’s holding company, Capitol of Texas Bancshares, will also leverage the success of The Bank of San Antonio by including some notable San Antonio executives, including Robert Cavender, president of Cavender Automotive Group; Gene Dawson Jr., chairman of Pape-Dawson Engineers; David Spencer, biotech entrepreneur and investor; and Brent Given, president and CEO of The Bank of San Antonio.
According to Texas Banking Commissioner Charles Cooper, “the formation of this new state bank is a very positive sign” for the economy and small business growth as a whole.
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