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A financial services holding company is being created by the Redstone Cos. as an umbrella for Redstone Bank, Redstone Consulting and two newly formed lending institutions.
In addition to the new holding company, called Redstone Financial Inc., Redstone Bank is undergoing significant changes.
The Redstone parent is doubling its capital investment in the bank - from $5 million to $10 million. And for the first time, executives have brought in outside partners who are investing an additional $10 million in the bank.
Redstone Bank also hired longtime Houston banker Kim Wheless last month as president and CEO. And in another "first," the bank intends to open two or three branches to supplement the main institution on The Houstonian Hotel, Club & Spa campus at 109 N. Post Oak Lane.
The expansion efforts of Houston-based Redstone will make it difficult for the very private company to keep future news under wraps. The company operates dozens of entities that begin with the name Redstone, but is probably best known as the owner of The Houstonian.
"We've always had a plan to reconstitute a financial services company," says David Shindeldecker, Redstone's president and co-CEO. "We know how to lend money, and get it back."
Redstone Financial will file an application with the Federal Reserve Bank within two to three months. Since the holding company is so diverse, Shindeldecker anticipates that the regulatory review process will take six months.
A CONSIDERABLE EXPANSION
Formed three years ago, the Redstone Bank currently has $40 million in assets. The private bank caters to upscale clientele and small businesses in...