Two Texas banks are coming together to bring new capabilities and services to their clients.
Vista Bancshares, the holding company for Vista Bank, said in a Monday (Jan. 30) press release that it plans to acquire Charis Holdings and its subsidiary, Charis Bank. Vista Bank serves north, central and west Texas markets, and the deal will add Charis Bank’s north Texas locations and its assets.
Vista Bank President and CEO John D. Steinmetz said in the release that banking is a “people business” and that it’s important for companies that are coming together to have cultures that fit together.
“That said, in the next 10 years I believe you’ll see increased bank consolidation in Texas because of the rising cost of technology, innovation, competition from FinTechs and shadow banks, as well as the ongoing regulatory environment,” Steinmetz said in the release. “We want to be the bank that boards around the state look to in order to create value for their shareholders.”
PYMNTS research has found that consumers prefer dealing with one financial institution (FI) for more of their needs in order to simplify account management.
For example, 57% of consumers with at least one credit card with their primary banks say bundled solutions are easier and more convenient, according to “Bundled Banking Products,” a PYMNTS and Amount collaboration.
Among consumers who sign up with FinTechs rather than traditional banks and credit unions, many do so to avoid paying fees to send or receive instant payments.
FinTechs are most popular among bridge millennials, low-income consumers and paycheck-to-paycheck consumers who struggle to pay their bills, according to “The Role of FinTechs,” a PYMNTS and Ingo Money collaboration.
Subject to customary closing conditions, the planned acquisition of Charis by Vista is expected to close in the second quarter. It has been approved by the boards of directors of both companies, and Charis Bank is to merge into Vista Bank, according to the press release.
Charis President and CEO Ben Rathjen said that the planned acquisition will bring benefits to stakeholders and communities and will contribute to the growth of Vista Bank.
“As a century-old company, we sought to partner with Vista Bank because their history and operating philosophy mirrors our own while allowing us to bring new financial capabilities and services to our loyal clients and the markets we serve,” Rathjen said in the release.
PYMNTS Data: Why Consumers Are Trying Digital Wallets
A PYMNTS study, “New Payments Options: Why Consumers Are Trying Digital Wallets” finds that 52% of US consumers tried out a new payment method in 2022, with many choosing to give digital wallets a try for the first time.