SouthStar Bank, Author at SouthStar Bank, S.S.B.

by SouthStar BankOctober 8, 2026

A Letter from David Kapavik about the Acquisition of SouthStar Bank

Dear Valued Customers, I am pleased to share the news about our bank’s future. The Dinsdale family, owners of Pinnacle Bancorp, Inc., have signed an agreement to acquire SouthStar Bank. We will join an established family of community banks. The transaction will occur early next year, but we will continue operating under the SouthStar Bank name through 2027. I will continue to serve as President and CEO, and our management team and staff will remain the same. I understand you may have concerns or skepticism about the change in ownership. But you have my commitment to continue taking care of you, as we have for the past 31 years I have served as President. I can say this confidently because the family buying the bank already operates their other banks with the same values as SouthStar. On behalf of Executive Vice President of Pinnacle Bancorp, Inc., Matt Dinsdale, I want to share the following message: “Under Pinnacle Bancorp, Inc., SouthStar Bank will continue to operate with local management, local decision-making, local teams, and local control, reflecting both organizations’ shared commitment to community banking. Our heritage and values will continue to build on SouthStar Bank’s strong established foundation for its employees, customers, and communities.” SouthStar Bank will remain the same great bank, with the same 5-star customer service tradition that you know and love that sets us apart from other financial institutions. Our Team and I are genuinely excited about this opportunity and confident in the future it creates for our customers and the communities we have proudly served since 1920. The branches and employees, who know you by name, will continue serving our customers. For daily questions or concerns, please continue to contact and visit your local branch or reach out to any of our loan officers who regularly help you. As a personal guarantee, I am also listing the Moulton branch phone number so you can call me if we are not living up to my commitment to serving you as we always have. I welcome your call at 361.596.4611. Thank you for your continued business and support! David Kapavik CEO & President

Bank News, Important Notice, Press Release

by SouthStar BankOctober 8, 2026

Southern Bankshares, Inc. to Join Pinnacle Bancorp, Inc.

Moulton, TX: Pinnacle Bancorp, Inc. has signed an agreement to acquire Southern Bancshares, Inc., the parent company of SouthStar Bank of Moulton, Texas. SouthStar Bank has a total asset size of $1.35 billion with 16 full-service locations in Central Texas, including Austin, Bee Cave, Brazoria, Bremond, Calvert, Franklin, Georgetown, Gonzales, Harker Heights, Hearne, Kerrville, Leander, Moulton, Round Rock and Shiner. In addition, they have one loan production office (LPO) in Austin. Executive Vice President of Pinnacle Bancorp, Inc., Matt Dinsdale, is proud of how the two banks align: “Under Pinnacle Bancorp, Inc., SouthStar Bank will continue to operate with local management, local decision-making and local control, reflecting both organizations’ shared commitment to community banking. Our heritage and values will continue to build on SouthStar Bank’s foundation for their employees, customers and communities.” CEO of SouthStar Bank, David Kapavik, said, “I am honored for our team to be able to join another great family bank with a common culture, background, and community bank philosophy. SouthStar Bank makes a great fit for the Pinnacle Bank family strategically and geographically to serve customers in the Texas market.” The branches and employees of SouthStar Bank will continue serving customers throughout the acquisition. Pinnacle Bancorp, Inc. has noted that they are proud to add additional locations, including SouthStar Bank’s established team. The purchase is subject to regulatory approval and is expected to close in January 2027. Financial details of the transaction were not disclosed. About Pinnacle Bancorp: Founded in 1938, Pinnacle Bancorp, Inc. is a family-owned $20.2 billion regional banking organization operating in eight states with 164 branches. The company adheres to a community bank philosophy that values local decisions and local control.

Commercial

by SouthStar BankSeptember 18, 2026

Commercial Loan FAQs

Whether you’re purchasing commercial real estate, expanding your business, renovating an existing location, or investing in income-producing property, understanding the commercial lending process is essential. At SouthStar Bank, we work with Texas business owners and investors every day who have questions about qualification requirements, down payments, interest rates, and timelines. What Is a Commercial Loan? A commercial loan is financing designed to help businesses achieve their growth goals. Commercial loans can be used for a variety of purposes, including: Purchasing commercial real estate Refinancing existing debt Funding business expansion Equipment financing Guidance and credit lines Livestock SBA 504, SBA 7(a), USDA Unlike residential mortgages, commercial loans are evaluated based on several factors, including financial performance, cash flow, collateral, and the specific purpose of financing. SouthStar Bank’s local expertise gives our lenders a unique understanding of regional market dynamics and the economy, supporting a smooth, informed process as you seek commercial financing. What Credit Score Is Needed for a Commercial Loan? There is no universal minimum credit score for commercial financing, but as with traditional loans, established credit histories and demonstrated financial responsibility can help you qualify. While your credit score is important, with commercial loans, lenders will also evaluate: Business revenue and cash flow Existing debt obligations Industry experience Available collateral Down payment amount A strong overall financial profile can help improve your approval prospects and potentially lead to more favorable loan terms. How Much Is Required for a Down Payment? Commercial loan down payment requirements often range from 10% to 30%, depending on the loan type, property type, and borrower qualifications. Factors that may influence your required down payment include: whether the property is owner-occupied or an investment property, property risk profile, business financial strength, and loan program requirements. An experienced lender can help determine the best financing structure for your specific project. What Documents Will I Need to Apply? Preparing documentation in advance can help streamline the lending process. Common documents include: Business tax returns Personal tax returns Profit and loss statements Balance sheets Bank statements Personal financial statements Property information and leases, if applicable The exact requirements vary based on the transaction and the borrower’s financial profile. Our experts are always happy to discuss your situation and help determine what exact documentation you will need for your loan. What Is Loan-to-Value (LTV)? Loan-to-Value, or LTV, measures the loan amount compared to the value of the property being financed. For example, if a property is valued at $1 million and the loan amount is $800,000, the LTV is 80%. Lenders use LTV to assess risk, and lower LTV ratios often strengthen a borrower’s financing position. Can Startups Qualify for Commercial Financing? Yes. While established businesses may have an advantage due to operating history, startups can still qualify for financing. Lenders may place greater emphasis on personal credit history, industry experience, business plans, financial projections, and available collateral. Working with a lender who understands your business goals can help identify available financing options. Why should I work with a […]

Retirement, Self-Directed IRA

by SouthStar BankSeptember 8, 2026

Invest in What You Know with a Self-Directed IRA

While most Individual Retirement Accounts (IRAs) are limited to stocks, bonds, and mutual funds, Self-Directed IRAs (SDIRAs) can offer you a variety of investment options to diversify your portfolio and put your retirement funds to work. This advantage lets SDIRA account holders invest in areas of expertise while still enjoying the tax benefits of a retirement account. What Is a Self-Directed IRA? A Self-Directed IRA is a retirement account that allows investors to hold a broader range of investments than traditional IRAs. While the tax benefits and contribution rules are generally the same as traditional or Roth IRAs, the key difference is investment flexibility. With a Self-Directed IRA, eligible investments may include: Why Invest in What You Know? One of the most common investing principles is to leverage your knowledge and experience. If you have spent years working in real estate, construction, lending, or business ownership, you may have insights that help you evaluate these investment opportunities more effectively. For example, a real estate professional may be able to identify undervalued properties, assess market trends, and understand local demand better than someone investing in publicly traded securities. Likewise, an experienced entrepreneur may be more comfortable evaluating private business opportunities than analyzing stock charts. Investing in familiar asset classes can help investors make more informed decisions and potentially identify opportunities that align with their expertise. Diversification Beyond Wall Street Market volatility can make investors reconsider whether to concentrate all retirement assets in traditional securities. A Self-Directed IRA offers an opportunity to diversify across multiple asset classes. Diversification does not guarantee profits or protect against losses, but spreading investments across different sectors and asset types may help reduce overall portfolio risk. For many retirement savers, combining traditional investments with alternative assets creates a more balanced approach to long-term wealth building. Benefits of a Self-Directed IRA Investors often choose Self-Directed IRAs for several reasons: Take Control of Your Retirement Strategy If you are looking for a retirement strategy that aligns with your experience and investment goals, a Self-Directed IRA may be worth exploring. SouthStar Bank’s dedicated IRA team is always happy to discuss your situation and determine if a SDIRA is right for you! Contact our dedicated team of IRA experts to get started today! Frequently Asked Questions What is a Self-Directed IRA? A Self-Directed IRA (SDIRA) is a retirement account that offers the same tax advantages as a traditional or Roth IRA while allowing investors to hold a broader range of alternative assets. What can I invest in with a Self-Directed IRA? Depending on IRS guidelines, Self-Directed IRAs may invest in real estate, private lending, private equity, tax liens, certain precious metals, and other alternative investments. Can I buy real estate with a Self-Directed IRA? Yes. Real estate is one of the most popular investments held in Self-Directed IRAs, including residential, commercial, and undeveloped properties. Why do investors choose a Self-Directed IRA? Many investors choose a Self-Directed IRA because it provides greater investment flexibility, portfolio diversification, and the opportunity to invest in […]

Savings

by SouthStar BankAugust 31, 2026

Youth Savings Account Scholarship

Looking to jump start your child’s savings? Our Youth Account Scholarship could be the perfect fit! Open a Shooting Star Savings Account for your child before 10/31/26 and receive a $100 Scholarship Bonus with your $25 Minimum Opening Deposit. Starting your child’s saving journey early can be a great way to educate them financially and set them up for long term success! Shooting Star Savings Account Details: Ages 0-17 $25 Minimum opening deposit No monthly service fees No minimum balance requirement 1.00% APY* Visit your local branch today to claim your child’s scholarship bonus! While you’re there, ask about our other Youth Account offerings along with our wide variety of accounts and lending products or learn more here! *APY = Annual Percentage Yield. Interest rates are variable and may change at any time without notice. APY valid as of 9/1/2026. Fees may reduce earnings. Not eligible for checks or debit card. One account per person. Customers currently holding a Rising or Shooting Star Account, or those who previously had a Rising Star Account are not eligible. Account changes to regular savings upon student’s 18th birthday. Scholarship Bonus is considered interest and will be reported on IRS 1099-INT. Scholarship valid for first 1000 accounts through 10/31/26, one per person deposited into savings.

General Education

by SouthStar BankAugust 25, 2026

Fall in Love With Your Bank

Banking at a large, national bank can often feel tedious and impersonal. At SouthStar Bank, we understand how much it means to our clients and communities to provide personal, friendly service centered on you. We take pride in getting to know our customers and strive to make their banking experience quick, easy, enjoyable, and warm. Banking is more than just a place to stash your cash; it is about trust, security, and a banking team that works hard to understand and support your individual needs. Fall in Love with Community Banking In a world where services are increasingly online, the people-first, relationship-focused model of community banking feels even more impactful. SouthStar Bank has proudly served the communities we live and work in for 106 years, developing a deep understanding of each community’s unique needs. Our philosophy puts the customer first and focuses on providing the best service possible while still offering the modern banking conveniences customers want. This unique combination allows for an unmatched banking experience. Fall in Love with Local Lending Leveraging our deep connection to and knowledge of our communities allows SouthStar Bank to make loan decisions locally, tailoring solutions to your needs and goals. We’ve developed programs for a variety of needs, whether you are looking for your first home, building your dream house, or seeking small business or commercial funding to expand or start your business. Our local teams also make loan decisions in-house, rather than an out-of-state committee typical of a national bank. This lets our lending team make decisions efficiently, using their strong knowledge of the local market and economy. Fall in Love with 5-Star Service SouthStar Bank’s continued focus on our customers and communities has allowed us to provide an unmatched banking experience that truly makes our clients feel like family for over 100 years. We value personal relationships and strive to build genuine rapport with our clients, with products and services to support you at every step of your financial journey. This personal approach has helped us deliver an experience that stands out and provides the trust and security you deserve. Our teams are here for you, with the expertise to guide you to the products and services that best fit your situation. Fall in Love with Banking with Confidence Your finances are a vital part of your day-to-day life; take the stress out of banking by having the support of a local community bank that is invested in your security and success. SouthStar Bank offers an experience that feels personal and tailored to you and your needs. We have proudly served Central Texas for more than a century, continuing to refine our products and services to grow and adapt with the ever-changing needs of our communities. Ready to Fall in Love with Your Bank? Reach out to your local SouthStar Bank branch and join the family today!

General Education, IRA Accounts

by SouthStar BankAugust 17, 2026

Common IRA Mistakes and How to Avoid Them

Individual Retirement Accounts (IRAs) are unique, tax-advantaged accounts that present a great option for those looking to build their retirement nest egg. While an incredibly effective tool, even the most well-intentioned savers can make mistakes that can potentially reduce their long-term retirement savings potential. Below are five of the most common IRA mistakes, according to Morningstar. 1. Not Getting Started Early One of the biggest IRA mistakes is delaying getting your retirement savings started. Compound growth is a major contributing factor in the benefits offered by your IRA, making any delays largely consequential when you reach retirement age. Even if you cannot make the maximum annual contribution to your IRA, it is well worth placing what funds you can in your IRA each year to allow your retirement savings to continue to grow. The earlier you begin contributing to an IRA, the more time your investments have to potentially grow. Small, consistent contributions can make a meaningful difference over several decades. 2. Not Maximizing Contributions Many account holders contribute less than they are eligible to each year. While contributing something is better than nothing, making the full allowed contribution each year (if you are able) can make a huge difference when it comes time to retire. Review current IRS contribution limits annually and increase your contributions whenever your budget allows. Setting up automatic transfers to your IRA can also be a great way to ensure you don’t miss any annual contributions. 3. Choosing the Wrong Type of IRA Traditional IRAs and Roth IRAs offer different tax advantages, be sure to review each account type thoroughly to make sure you choose the account that best fits your situation. When choosing an IRA, consider your current income, future tax expectations, and retirement goals. Our IRA team is always here if you have questions or would like to discuss which IRA offering best fits your situation. 4. Taking Early Withdrawals An IRA is designed for retirement, not short-term spending or emergency savings. Withdrawing funds before you are eligible can trigger taxes, penalties, and lost long-term growth. Beyond the immediate financial consequences, early withdrawals reduce the money available to grow over time, potentially affecting your retirement readiness. Build a separate emergency fund for unexpected expenses and emergencies. Keeping accessible savings outside of your retirement accounts can help prevent the need for early IRA withdrawal and help you avoid costly penalties, now and in the future. 5. Forgetting About Beneficiaries Many people open an IRA and never revisit their beneficiary designations. Outdated beneficiaries can be problematic, so we recommend reviewing your beneficiaries annually and especially after major life events (e.g., marriage, divorce, death of a loved one, childbirth, etc.). If your beneficiary is designated incorrectly, your assets may be distributed differently than you had intended. Get Started Today with Your SouthStar Bank IRA Experts! An IRA can play a crucial role in your retirement strategy, but avoiding common mistakes is just as important as opening the account itself. By starting early, maximizing contributions when possible, […]

Commercial, General Education

by SouthStar BankAugust 3, 2026

The Basics of Commercial Real Estate Financing

For many business owners and real estate investors, commercial property ownership can be a powerful strategy for building long-term value and supporting business growth. Whether you’re purchasing an office building, expanding into a larger facility, acquiring investment property, or developing commercial land, securing the right financing is a critical part of the process. At SouthStar Bank, we understand that every commercial real estate project is unique. That’s why we offer flexible commercial real estate lending solutions designed to help businesses and investors achieve their goals with confidence. What Is Commercial Real Estate Financing? Commercial real estate (CRE) financing helps businesses and investors purchase, refinance, develop, or improve income-producing and owner-occupied properties. According to the Corporate Finance Institute, commercial real estate loans are commonly used for: The right financing solution can help preserve working capital while providing the resources needed to invest in growth opportunities. Common Uses of Commercial Real Estate Loans 1. Purchase Owner-Occupied Commercial Property Many business owners eventually reach a point where purchasing their own facility makes more sense than continuing to lease. Owning commercial real estate can provide several advantages, including: Whether you’re purchasing an office, retail space, warehouse, or specialized facility, commercial financing can help make ownership more attainable. 2. Finance Commercial Investment Properties Commercial real estate can also be an effective investment strategy. Investors often use financing to acquire properties that generate rental income and offer long-term asset growth. Commercial investment properties may include retail centers, office complexes, multifamily properties, industrial facilities, and mixed-use developments. The right financing structure can help investors manage cash flow while expanding their real estate portfolio. 3. Refinance Existing Commercial Real Estate Debt Commercial real estate financing can also be used to refinance existing debt. Businesses and investors often refinance commercial loans to: Refinancing can be an effective tool for organizations looking to position themselves for future growth. 4. Support Property Improvements and Expansion As businesses grow, their facilities often need to evolve as well. Commercial real estate financing for existing properties may help fund improvements like building expansions, property renovations, infrastructure and facility upgrades, or tenant improvements. Strategic property improvements can enhance operational efficiency, improve the customer experience, and increase the asset’s long-term value. 5. Benefit from Local Decision-Making When financing commercial real estate, experience and local market knowledge matter. SouthStar Bank has a proud 105-year history of providing unique, local expertise in the communities we live and work. Working with a community-focused bank provides you with unique advantages. At SouthStar Bank, we take a relationship-based approach, focusing on fully understanding your goals and aspirations to find you the best possible solution, both now and in the years to come. Our local expertise allows our lenders to better support you while also allowing for faster decision-making and flexible financing options. Why Businesses Choose SouthStar Bank for Commercial Real Estate Lending Commercial real estate loans often involve complex financial considerations. Choosing the right lending partner can help simplify the process and provide peace of mind from application through closing. SouthStar […]

General Education, Mortgage Lending

by SouthStar BankJuly 29, 2026

When Should You Refinance Your Mortgage?

For many homeowners, refinancing a mortgage can be a smart financial move, but timing matters. Mortgage refinancing replaces your current home loan with a new one, typically with different terms. According to TransUnion, refinancing is often pursued when homeowners can lower their monthly payment, reduce their interest rate, or access their home’s equity. Understanding when to refinance can help you maximize savings and achieve your financial goals. 1. Interest Rates Have Fallen One of the most common reasons to refinance is to take advantage of lower mortgage rates. Even a relatively small reduction in your interest rate can result in substantial savings over the life of your loan. The exact advantage of this move depends on your remaining loan balance, loan term, and refinancing closing costs. 2. Your Credit Score Has Improved Your credit score is a major factor when determining your loan term. If your credit score has improved since you first purchased your home, you may be able to secure more favorable loan terms through refinancing. Making payments on time, keeping credit balances low, and paying down existing debt can all help improve your credit score. 3. You Want a Lower Monthly Payment Refinancing could help reduce your monthly mortgage payment by: Lower monthly payments can improve cash flow and provide additional flexibility in your household budget. Lower monthly payments may mean you pay more over the life of the loan. It is important to take time to assess your situation fully and talk to your trusted loan officer to make sure refinancing is the right move, now and in the years to come. 4. You Want to Pay Off Your Home Faster Not every refinance is about lowering payments. Some homeowners choose to refinance from a 30-year mortgage to a 15-year or 20-year term. While your monthly payment may increase, you will typically build equity faster and pay significantly less interest over the life of the loan. 5. You Need Access to Home Equity If your home’s value has increased, a cash-out refinance may allow you to borrow against your available equity. Homeowners often use cash-out refinancing for: Before pursuing a cash-out refinance, it’s key to carefully evaluate your long-term financial plans and repayment ability. Consider the Break-Even Point Refinancing is not free. Closing costs and lender fees can affect the overall value of a refinance. A useful metric is the break-even point, which measures how long it takes for your monthly savings to offset the cost of refinancing. If you plan to stay in your home beyond that timeframe, refinancing may provide meaningful long-term benefits, but it is wise to weigh both the short-term and long-term savings against the cost of refinancing before beginning the process. Is Refinancing Right for You? If refinancing could help lower your rate, reduce monthly payments, adjust your loan term, or unlock home equity, it may be worth exploring your refinancing options. At SouthStar Bank, our local lending experts are here to help you evaluate if refinancing aligns with your financial […]

General Education

by SouthStar BankJuly 16, 2026

Common Banking Mistakes and How to Avoid Them

When it comes to managing your finances, the biggest banking mistakes are often the simplest ones. Many consumers focus on earning more money but overlook everyday banking habits that can impact their financial health. From overdraft fees to cybersecurity risks, small oversights can lead to unnecessary expenses and stress. At SouthStar Bank, we believe financial success starts with smart banking habits. Here are some of the most common banking mistakes people make—and practical ways to avoid them. 1. Not Monitoring Your Accounts Regularly One of the most common banking mistakes is assuming everything in your account is accurate without reviewing it. Accounts missing a consistent review can lead to unauthorized transactions, forgotten recurring subscription costs, and simple errors going unnoticed for months. Failing to monitor accounts can often lead to overdraft or minimum balance fees being imposed. How to avoid it: When it comes to potential errors or fraud, the sooner you notice the issue, the better. SouthStar Bank offers real-time account updates to all account holders through our SecureAlerts feature. These alerts cover a wide range of activities, including the option to select the specific alerts you would like to receive for each of your accounts. By receiving alerts in real-time, you can address inaccuracies, fraud, or other issues and take action when necessary. Low-balance alerts can also be implemented to better prevent potential overdraft fees. It is also recommended to review monthly account statements to ensure no unusual activity is present that was not noticed previously. 2. Keeping Too Much Money in a Checking Account Checking accounts are excellent accounts for your day-to-day spending needs, but these accounts are often non-interest-bearing, diminishing their value for building long-term savings. Funds sitting in a non-interest-bearing account may miss opportunities for growth. How to avoid it: It is important to maintain a strong mix of accounts; any long-term savings should be placed in interest-bearing accounts, such as a Certificate of Deposit (CD), Savings Account, or Money Market Account. Use a dedicated savings account for emergency funds and future goals. It is also wise to keep spending money separate from savings to allow for simpler budgeting. 3. Neglecting Online Banking Security Fraud is more prevalent than ever before and continues to increase in danger and complexity. Technological advances and the prevalence of AI have allowed fraudsters to use phishing emails, fake text messages (smishing), and scam phone calls (vishing) with more success and efficiency than ever before. These bad actors often use these techniques to gain access to banking or other personal information. Weak and/or repeated passwords and poor security practices increase the risk of account compromise. How to avoid it: Create strong passwords, enable multi-factor authentication when available, and NEVER share account credentials. Your bank will never call, text or email you requesting your personal or sensitive information, like your PIN Number, online banking password, One-Time Passwords, or full Social Security Number. If you’re unsure about a communication (email, phone call, text, or otherwise) claiming to be from your bank, contact […]