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NORTHSTAR's CUSTOMER SERVICE REPUTATION IS A JOKE

Several weeks ago my wife & I visited Northstar's Colleyville,TX branch and inquired re opening Velocity checking accounts for ourselves and for our respective elderly mothers for whom we have legal Powers of Attorney. Both my wife and I manage the financial affairs for our Moms who are in senior citizens centers and rely on us for financial and other assistance. We were told that could open accounts with the POA's (which we didn't have with us at the time) and left our information to open the joint account for ourselves and told them we would return with the POA's for the Mom's accounts.We returned a few days later to complete the paperwork for all three accounts only to be told that Northstar would not honor the Powers of Attorney and that our Mothers would have to come in in person, citing the Patriot Act protections to guard against terrorism.

WOW!! As mentioned both Mothers are in senior citizen centers, making personal appearances next to impossible and clearly highly impractical. Next their elderly status is the very reason we had Powers of Attorneys executed in the first place. We have used the POA's at other banks and business for several years without issue and find Northstar's position absurd, without logic or common sense and perhaps even illegal and/or discriminatory. Maybe they just don't like to do business with senior citizens, including ourselves.

This was one of the worst customer service experiences I have been a part of and heve shared our experience with everyone we know. TRY ANOTHER BANK - THERE'S PLENTY OF GOOD ONES OUT THERE.

Grant Whitt, Southlake,Texas

Great Service! Rate Changes On Mar 17, 2011

I've banked with them for 6 months - great rates and service. Received a notice yesterday announcing the following changes effective Mar 17, 2011:

- Rate will be increased from 3.51% APY to 4.01% APY

- High interest rate balance cap will be lowered from 50k to 30k and rate above the cap will decrease from 1.01% APY TO 0.5% APY

- Velocity Saver a new Savings Product that will earn 1.5% APY upto 20K when the Checking qualifications are met.

Overall still a better rate and service with the above changes.

Lowered Rates Twice In Eight Months

Just got a letter in the mail saying that starting March 22, 2011 the max deposit for interest in velocity checking will be lowered from $30k to $20k, and the rate will be lowered from 3.01% APY to 2.25% APY.

Given the general uncertainty in the banking sector right now due to the debt crisis in Europe, it is understandable that they might change their rate. However I got hit with a rate change a few days after I opened my account, so I am considering other banks that offer a better deal on rewards checking.

Other than this flux, the customer service has been great.

Northstar Bank Of Texas

I like doing business with this bank.  The people are friendly, helpful and professional.   I also like that, as one might expect from a small-town bank, they are actively involved in the communities in which they are located.   For example, the bank has for the last 7 years been a generous supporter of a local group which holds an annual event open to the county. 

The online system is old technology and has the look and feel of something out of the late 1980's but it works reliably and consistently.  Your login ID is your account number but it can be changed through a call to the Customer Service number.  There is a separate signon for Estatements, which is cumbersome and that can likely be changed as well.  I believe the odd-cycle issue that the previous reviewer mentioned is common to many Reward Checking accounts although some institutions offering them do have more "conventional" qualification periods coinciding with month end. 

However, the Velocity Checking rate is terrific, the $50K cap is outstanding, and the required number of debit transactions is very manageable.  The Bill Pay interface works well (I requested a transfer at 0700 on a Monday and it was available in the target account Wednesday at 0700).  

To me, all those pluses more than offset a less-than-stellar interface and odd cycle closes and I would definitely recommend them.  

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Health

Data for Q4 2013

Institution Health

A

Texas Ratio

GRADE:
A+

The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of December 31, 2013 Northstar Bank of Texas had $9.05 million in non-current loans and owned real-estate with $162.34 million in equity and loan loss allowances on hand to cover it. This gives Northstar Bank of Texas a Texas Ratio of 5.57% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.

Texas Ratio Trend

GRADE:
A+

The Texas Ratio for Northstar Bank of Texas decreased dramatically from 11.31% as of December 31, 2012 to 5.57% as of December 31, 2013, resulting in a positive change of 50.74%.This indicates that the balance sheet and financial strength for Northstar Bank of Texas has improved dramatically in recent periods.

Deposit Growth

GRADE:
D

In the past year, Northstar Bank of Texas has decreased its total deposits by -$52.22 million, resulting in -5.33% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Northstar Bank of Texas has shown is below average.

Capitalization

GRADE:
A+

Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Northstar Bank of Texas has $1.1 billion in assets with $162.34 million in equity, resulting in a capitalization level of 14.74%, which is excellent.

Institution Statistics

Overall
FDIC Certificate #11561
Year Established1919
Employees284
Primary RegulatorFED
Assets and Liabilities
Assets$1.10 billion
Loans$693.77 million
Deposits$926.58 million
Equity Capital$155.34 million
Loan Loss Allowance$7.00 million
Unbacked Noncurrent Loans$6.30 million
Real Estate Owned$2.75 million
Historic Data - December 2012
Assets$1.25 billion
Equity Capital$155.61 million
Loan Loss Allowance$2.31 million
Unbacked Noncurrent Loans$6.30 million
Real Estate Owned$7.66 million
Profit Margin - Quarterly
Net Interest Margin4.32%
Return on Assets0.9%
Return on Equity6.57%
Interest Income$47.17 million
Rates

Always verify rates and promotions with the bank or credit union. We are not Northstar Bank of Texas, we are a rate comparison website and can not provide official rates or promotions.

Northstar Bank of Texas Savings Account Rates

DetailsAPYMINMAXPRODUCT
0.50%-$10kVelocity Saver
0.40%$5k-Health Savings Account
0.10%$250-Regular Savings
0.10%--Minor Savings
0.05%--Velocity Saver

Northstar Bank of Texas Money Market Rates

DetailsAPYMINMAXPRODUCT
0.35%$100k-Star Money Market

Northstar Bank of Texas Checking Account Rates

DetailsAPYMINMAXPRODUCT
1.00%-$10kVelocity Checking
0.12%$25k-Premium Plus Checking
0.05%--Velocity Checking

Northstar Bank of Texas CD Rates

DetailsAPYMINMAXPRODUCT
1.50%$1k-5 Year CD
1.20%$1k-4 Year CD
1.00%$1k-3 Year CD
0.70%$1k-2 Year CD
0.55%$1k-18 Month CD
0.45%$1k-1 Year CD
0.40%$5k-11 Month Liquid CD
0.25%$1k-6 Month CD
0.20%$1k-3 Month CD

Northstar Bank of Texas IRA Rates

DetailsAPYMINMAXPRODUCT
0.70%$500-24 Month IRA
0.45%$500-12 Month IRA
Locations

Northstar Bank of Texas has 15 locations. Click to view all Northstar Bank of Texas locations.