A year after celebrating its first century, Lubbock National Bank is joining forces with Amarillo National Bank to assure the bank, its customers and community another strong 100 years.
The acquisition by Amarillo National Bank is expected to close in the first quarter of 2019.
The ownership is changing, but there will be no name change and LNB leadership will stay in place.
“The timing was right,” said Eddie Schulz, president of Lubbock National Bank.
“The economy is good and it was the right time to position the bank to guarantee continuity as a West Texas-owned family organization.”
Schulz explained some Lubbock banks recently sold to publicly traded companies and LNB’s ownership is thrilled to be part of another locally owned family bank.
The cultures of the two financial institutions are already very similar, he said.
“Our long-term history and collective knowledge will allow us to focus on our customers and make fast decisions. We’re excited about joining a family-owned bank in West Texas with a strong, proven management team. We’re committed for the long term. We’re here to stay,” he said.
The LNB Board of Directors are “very pleased with its choice in an acquisition partner, said Roger A. Key, board chairman and grandson of Charles Ernest Maedgen, Sr., LNB’s founder.
“It is the strong consensus of the board of directors that ANB will retain LNB’s employees, will work well with its customers, and will be a very positive influence on the communities which it serves,” he said.
LNB started looking at potential buyers because – among other reasons – there was no next generation interested in running the bank, said Schulz.
During that process, Amarillo National Bank reached out.
The Ware family is in its fifth generation of banking in Amarillo and is the largest family-owned independent bank in the United States, said Schulz.
ANB president William Ware said, “This is keeping independent banking in West Texas. Here are two West Texas banking families joining forces to focus on our customers and our communities. This is a great fit for both banks.”
LNB has $1.08 billion in assets and ANB has $4.14 billion in assets.
Schulz said this makes LNB stronger and allows the bank “to do things other independents can’t do.”
“You’ll see larger loan limits, better loan pricing and we’ll be able to serve customers faster,” said Schulz, adding customers will see better deposit pricing, too.
LNB will add a mortgage division and other product offerings due to Amarillo National’s financial strength.
LNB has prided itself on being a good corporate citizen and expects that to also improve.
As an example, at a recent press conference to announce the acquisition, Ware announced LNB was donating $500,000 toward the Texas Tech Alumni Association’s Frazier Alumni Pavilion expansion campaign. The contribution will sponsor the art feature in front of the building.
“Amarillo National Bank wanted to show their commitment to the Lubbock community and show they’re committed for many years to come,” said Schulz.
Lubbock National Bank is 101 years old and has more than 160 employees across its 14 locations (six in Lubbock, four in Bryan/College Station, three in Austin and one in Fort Worth). Outside of Lubbock it operates as Commerce National Bank. The Maedgen and Key families have owned a majority interest in LNB and have been a part of the management team of LNB since 1917.
Amarillo National Bank has been doing business in Lubbock for generations, working with large commercial businesses in West Texas. ANB has more than 660 employees spread across 14 branches in Amarillo, one in Canyon, one in Borger and branches in Lubbock.
The combined company is expected to have more than $5 billion in assets at closing.
The transaction is subject to the satisfaction of all customary closing conditions, including regulatory approvals and approval by the shareholders of Commerce National Financial Services, Inc. The definitive agreement between the parties was signed effective November 2. It is an all-cash transaction.