Rio Bank and Lone Star Capital Bank announced jointly they are entering into a "definitive agreement" and providing a merger, according to a news release.

Rio Bank is headquartered in McAllen and Lone Star Capital Bank is headquartered in San Antonio. The merger will allow Lone Star to become part of Rio Bank, according to the news release.

"We are excited to be expanding our footprint in the San Antonio and Texas Hill Country," Rio Bank CEO Ford Sasser said. "Lone Star has offices in San Antonio, Blanco, Johnson City, Dripping Springs and Marble Falls. These are markets we have not been servicing in the past, but we look forward to becoming a part of these communities."

The news release said following the close of the transaction, the market presence is expected to include 22 full-service branches from Brownsville in the lower Rio Grande Valley to Marble Falls in the Texas Hill Country. It is also expected to total approximately $780 million in loans, approximately $1.2 billion in deposits and approximately $1.4 billion in total assets.