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Bank History

Commencement of operations under the name of Bank of Galveston, National Association, occurred on June 23, 1966 upon the issuance of a national banking charter by the Comptroller of the Currency. The bank name was changed to HomeTown Bank, National Association, on April 19, 1999, to accommodate expansion away from Galveston Island. The Bank's deposit accounts are insured under the Federal Deposit Insurance Act up to applicable limits. The Bank is a member of the Federal Reserve System and the Federal Home Loan Bank.

The Bank has a long history of consistent leadership. Michael J. Gaido, Sr. of the well-known Gaido restaurant and hotel family in Galveston served as Chairman of the Board from 1966 to 1993. Jack Miller assumed the Chairman's duties in 1993 after the passing of Mr. Gaido. Mr. Miller owned and operated Schreiber and Miller Furniture in Galveston and La Marque for many years. Michael J. Gaido, Jr., son of Michael J. Gaido, Sr. currently serves as Chairman of the Board. Douglas Lee served as President of HomeTown Bank from 1967 through 1988. Jimmy Rasmussen has served as President since January 1989.

The Bank currently has two banking offices on Galveston Island, two in Friendswood, one in League City, one in Alvin, and one in Pearland, Texas. At December 31, 2013, the Bank had $468.5 million in assets, $278.2 million in loans and $419.2 million in deposits.

The Bank offers a broad range of banking services, including personal and business checking accounts and various types of interest-bearing deposit accounts, including interest-bearing checking, money market, savings, IRA, and time certificates of deposits. The following types of loans are offered: consumer installment (including automobile), commercial (including real estate construction), residential real estate, second mortgages, home improvement, home equity, and letters of credit.

Other services the Bank offers include safe deposit boxes, night depository facilities, credit card services, debit cards, notary services, travelers checks, money orders, wire transfer services, cashier checks, drive up facilities, 24 hour ATM banking services, telephone banking, direct deposit, commercial remote deposit capture, commercial positive pay services and internet banking with bill pay. The Bank also offers the convenience of mobile banking. This includes apps for iPhone and Android cell phones. Mobile web is available for other cell phone users. As part of the Bank’s electronic banking, the convenience of mobile deposit is available. Text banking provides fast, secure responses to financial information requests. The Bank is a member of regional ATM networks and offers worldwide access services.

The Community Reinvestment Act of 1977 ("CRA") was enacted to encourage every financial institution to help meet the credit needs of its entire community, including low and moderate- income neighborhoods, consistent with its safe and sound operation. The Bank has received an "Outstanding" CRA rating for our last two regulatory exams; the latest being in 2008.

At December 31, 2013, the Bank had a total of 100 full-time equivalent employees. The Bank takes great pride in the quality of service provided by their "HomeTown" family of directors, officers and employees, and rewards the employees with very competitive benefits, training, and an excellent work environment.

The equity securities of the Bank consist of one class of common stock, of which there were 382,657.18 shares outstanding, held by 556 shareholders of record as shown on the Bank's records December 31, 2013. The Bank has paid a cash dividend for twenty-nine consecutive years. The most recent cash dividend for 2013 was $3.00. The Bank stock is not traded on an exchange and all authorized stock has been issued. Total Equity Capital was $44,477,534.

At December 31, 2013, the Bank's capital exceeded all minimum regulatory requirements. The Bank's risk-based capital ratios, shown below as of December 31st have been computed in accordance with regulatory accounting policies.

Adequately Capitalized
Ratios

Adequately Capitalized
Requirements

2012

2013

Tier I Leverage Ratio

4%

8.84%

9.38%

Tier I Risk-Based Capital

4%

15.44%

15.65%

Total Risk-Based Capital

8%

16.69%

16.90%

The directors, officers, and employees of HomeTown Bank, National Association appreciate the tremendous support of their customers and look forward to creating many new relationships in their Galveston, Friendswood, League City, Alvin and Pearland markets.