Fredericksburg Banker: Big-Bank Deposits Fund New York, Not the Hill Country
On The Building Texas Show, Texas Regional Bank Market President John Wells tells host Justin McKenzie why community banks reinvest local deposits, how Fredericksburg ISD's incubator fights brain drain, and what the Waldorf Astoria arrival signals for the Hill Country.
Fredericksburg, TX (Newsworthy.ai) Tuesday Nov 3, 2026 @ 6:00 PM CST
The Building Texas Show — Why Your Money Might Be Leaving Texas (And Where It Goes)
“All the deposits that are going into those banks are going straight to New York. They are going to these giant loans in Chicago and New York and L.A., and they're not being reinvested here in the community.”
The latest episode of The Building Texas Show, titled Why Your Money Might Be Leaving Texas (And Where It Goes), hosted by Justin McKenzie, lands October 21, 2026 with a pointed look at where Hill Country deposits actually end up. McKenzie sits down in Fredericksburg with John Wells, Market President for Texas Regional Bank, to unpack a timely question for Texas savers and small-business owners: when community money flows into national banks, does any of it come back home? The conversation also tracks Fredericksburg's rapid evolution into a national destination without losing its Texas identity.
Listeners get a wide-angle view of the forces reshaping Fredericksburg and the surrounding Hill Country. Topic threads include:
The Building Texas Show — Why Your Money Might Be Leaving Texas (And Where It Goes)
“All the deposits that are going into those banks are going straight to New York. They are going to these giant loans in Chicago and New York and L.A., and they're not being reinvested here in the community.”
- The arrival of the Waldorf Astoria and what it says about tourism-led growth beyond peaches, antiques, and German heritage.
- Relationship banking versus rate shopping, and why the best operators keep an attorney, a CPA, and a banker on speed dial.
- Fredericksburg ISD's incubator and CTE programs, the Chamber's role under Jim McCulla, and the fight against Hill Country brain drain.
Wells, who started on the frontline at Chase before stops at the former Compass Bank and a five-year run building Texas Regional Bank's Fredericksburg market, draws a hard line between national and community institutions.
Nothing against the big banks, the big national banks, but all that money, all the deposits that are going into those banks are going straight to New York. They are going to these giant loans in Chicago and New York and L.A., and they're not being reinvested here in the community.
He contrasts that with community lenders like Texas Regional Bank and Security State Bank, which, he says, put earnings back to work locally.
The episode digs into how that reinvestment shows up on the ground. Wells credits Dan Kemp and David Pedragon of Security State Bank as servant leaders who helped fund the Fredericksburg High School incubator, and he points to Little League jerseys stamped with hometown bank logos as a visible test of who actually backs the community. He and McKenzie also discuss his wife's work as sales director at Insight Gallery, the influx of remote executives from Austin and San Francisco, and the housing-affordability gap that still constrains young families. Wells, incoming chair of the Fredericksburg Chamber of Commerce, previews student pitches heading to the Texas Venture Fest in Mason.
About The Building Texas Show
The Building Texas Show, hosted by Justin McKenzie, spotlights the founders, operators, bankers, educators, and civic leaders shaping the Texas economy from the Hill Country to the coast. Each weekly episode blends on-the-ground reporting with candid conversation about entrepreneurship, community building, and the people putting capital and ideas to work across the state. The new episode is available now on YouTube, Facebook, Instagram, LinkedIn, and all major podcast platforms.
Frequently Asked Questions
- Who is John Wells and what is his role at Texas Regional Bank?
- John Wells is the Market President for Texas Regional Bank in Fredericksburg, Texas. He started as a frontline banker opening accounts at Chase, then earned his investment licenses and worked at what was then Compass Bank. After an almost two-year recruiting process during COVID, he joined Texas Regional Bank and has spent the past five years building its Fredericksburg market.
- Why does Wells argue community banks matter more than national banks for the Hill Country?
- Wells contends that deposits placed with big national banks flow out of Texas to fund giant loans in New York, Chicago, and Los Angeles rather than being reinvested locally. Community banks like Texas Regional Bank and Security State Bank, by contrast, put earnings back into the communities where the money was generated, funding local causes such as the Fredericksburg High School incubator program.
- What is the "holy trinity" of advisors Wells recommends for business owners?
- Wells cites a mentor who told him every business owner needs three people on speed dial: an attorney, a CPA, and a banker. He argues the best operators have the humility to recognize their limitations and lean on experts, especially bankers who can help with cash flow, AR, and AP tools that consumer banking websites rarely surface.
- How is Fredericksburg fighting Hill Country brain drain?
- Fredericksburg ISD's incubator and CTE programs, backed by the Chamber of Commerce under Jim McCulla, are creating pathways for students to build careers without leaving for Austin or Houston. Wells, the incoming Chamber chair, says young professionals and remote executives relocating from places like Austin and San Francisco are also creating internship and employment opportunities that previously did not exist locally.
- Who helped fund the Fredericksburg High School incubator program?
- Wells credits Dan Kemp and David Pedragon of Security State Bank as servant leaders who stepped up to make the incubator happen. He emphasizes that teachers cannot carry the program alone and that financial support from the broader business community, including Texas Regional Bank, has been essential to its success.
- What does the arrival of the Waldorf Astoria signal about Fredericksburg's growth?
- Wells sees the Waldorf Astoria as evidence that Fredericksburg has evolved from a quiet town known for peaches, antiques, and German heritage into a grown-up destination with amenities rivaling the country's best. He stresses that despite the tourism-led boom, the community has retained its Texas identity and work ethic, which he says shaped him more than anything after a decade living in Austin.
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