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As early as 1885, several public and private banks were established in Moulton, TX to serve the areas’ agrarian community. 

Privately held W.L. Tooley and Co. Bankers purchased First National Bank in 1901.  Tooley sold out to First State Bank of Moulton (at that time no relation to the current First State Bank) in September of 1905.  Lone Star Bank’s predecessor, The Farmers and Merchants Bank of Moulton, chartered on October 2, 1920, was a relative latecomer. 

On November 9, 1931, the old First State Bank of Moulton was purchased by Farmers and Merchants Bank of Moulton, who moved from their location into the former First State Bank building.  The Farmers and Merchants Bank changed its name to Moulton State Bank on February 26, 1981.

Mr. Raymond G. Schindler and family purchased controlling interest in Moulton State Bank on September 1, 1981 through its newly established Southern Bancshares Holding Company.  The purchase supplemented their 1973 acquisition of First Star Bank of Bremond, TX.  In 1983 they added Texas Star Bank of Lott, TX. Though First Star and Texas Star Banks share equally interesting histories prior to their acquisition by Southern Bancshares, the Lone Star brand has had the biggest influence on our evolution.

Moulton State Bank was renamed First State Bank of Moulton on June 27, 1990, and soon purchased the historical “Boehm Mercantile Store” for conversion into expanded headquarters.  Designed to emphasize its frontier heritage, the bank features high decorative ceilings, natural oak-paneled walls and a hand painted western mural.  It’s rugged, handsome style established an inviting warmth that continues to heavily influence the design and décor of our newer branches.

As word of our friendly, flexible brand of community-style banking spread, the bank expanded into neighboring communities and counties, opening a new branch in Shiner, Texas in June of 1997, followed by one in Gonzales, Texas in February, 2005.  During the same timeframe, we opened Loan Production Offices in Austin and Angleton.

In 2004 the bank’s name was changed to Lone Star Bank, S. S. B. to better reflect our growing regional presence in Texas.  Another decade of growth ensued as the holding company expanded into more urban markets, including the construction of several flagship facilities in the Austin area under the Lone Star and Texas Star brands.

In 2014, executive management and the Board of Directors began exploring the possibility of merging the three holdings under a single brand.  The potential benefits were obvious, led by centralized management, improved efficiency, streamlined regulatory reporting and higher lending capabilities.  An agreement was forged and work began in earnest. 

With consolidation efforts underway, attention was turned to naming.  Ultimately, SouthStar Bank was selected because of its strong reference to our deep southern heritage, warm hospitality and recognition as a bright, rising star in the communities we serve.  Consolidation was approved in late 2014, and operations began under the SouthStar Bank, S.S.B. name on January 1, 2015.