Fredericksburg's rapid rise as a national destination has brought new attention to where local money goes once it leaves a depositor's account. In the latest episode of The Building Texas Show, host Justin McKenzie speaks with John Wells, Market President for Texas Regional Bank, about the divide between national and community banking and its consequences for the Hill Country.
The episode, titled Why Your Money Might Be Leaving Texas (And Where It Goes), is scheduled for release on October 21, 2026. Wells, who began his career on the frontline at Chase before stints at the former Compass Bank and a five-year effort to build Texas Regional Bank's Fredericksburg market, draws a sharp distinction between national institutions and local lenders. "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," Wells says in the episode. "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."
That outflow has direct implications for small-business owners and savers in the Hill Country, according to the conversation. Wells contrasts national banks with community lenders such as Texas Regional Bank and Security State Bank, which he says put earnings back to work locally. He 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 bearing hometown bank logos as a visible measure of which institutions actually back the community.
The episode also explores Fredericksburg's evolution beyond peaches, antiques, and German heritage, including the arrival of the Waldorf Astoria and what it signals about tourism-led growth. Wells and McKenzie discuss the influx of remote executives from Austin and San Francisco, the housing-affordability gap that constrains young families, and the role of relationship banking versus rate shopping. Wells advises the best operators to keep an attorney, a CPA, and a banker on speed dial.
Education and workforce development feature prominently as well. The conversation covers Fredericksburg ISD's incubator and career and technical education programs, the Chamber's role under Jim McCulla, and efforts to fight Hill Country brain drain. Wells, incoming chair of the Fredericksburg Chamber of Commerce, previews student pitches heading to the Texas Venture Fest in Mason.
For listeners, the episode offers a framework for evaluating where their deposits ultimately go and how that choice affects local lending capacity. For the region, the stakes are tangible: as outside investment and tourism accelerate, the availability of locally reinvested capital may determine whether small businesses, young families, and homegrown talent can continue to gain a foothold in Fredericksburg.
