On the latest episode of The Building Texas Show, titled Why Your Money Might Be Leaving Texas (And Where It Goes), host Justin McKenzie speaks with John Wells, Market President for Texas Regional Bank, about where Hill Country deposits actually end up. The conversation, recorded in Fredericksburg, examines whether community money that flows into national banks ever returns home, a question with direct consequences for local savers, small-business owners, and the region's economic future.
Wells, who began his career on the frontline at Chase before stints at the former Compass Bank and a five-year run building Texas Regional Bank's Fredericksburg market, draws a sharp distinction between national and community institutions. He acknowledges the big banks are not villains, but he is blunt about the flow of funds: all the deposits going into those banks are going straight to New York, financing giant loans in Chicago, New York, and Los Angeles rather than being reinvested in the community. That dynamic matters because it determines whether local capital supports local projects or exports opportunity elsewhere.
The implications extend beyond banking philosophy. Wells contrasts national banks with community lenders like 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 stamped with hometown bank logos as a visible test of who actually backs the community. For listeners, the episode makes the case that where money is deposited has tangible effects on schools, youth sports, and small-business lending.
The discussion also tracks Fredericksburg's rapid evolution into a national destination without losing its Texas identity. Topic threads include the arrival of the Waldorf Astoria and what it signals 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 career and technical education programs; the Chamber's role under Jim McCulla; and the fight against Hill Country brain drain.
Wells, incoming chair of the Fredericksburg Chamber of Commerce, previews student pitches heading to the Texas Venture Fest in Mason. 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. Those threads tie the banking question to broader concerns about growth, affordability, and whether the next generation can afford to stay.
The episode lands as Fredericksburg balances destination status with community character. For Texas savers and business owners, the takeaway is that deposit decisions are also community decisions. The Building Texas Show, hosted by McKenzie, spotlights the founders, operators, bankers, educators, and civic leaders shaping the Texas economy from the Hill Country to the coast. The new episode is available on major podcast platforms and social channels.
