Amarillo National Bank acquires Lubbock National Bank

ANB chairman Richard Ware
Amarillo National Bank (ANB) is joining forces with Lubbock National Bank (LNB) through an acquisition that is expected to close in the first quarter of 2019. The transaction includes LNB’s six locations in Lubbock, four locations in Bryan/College Station, three locations in Austin and one location in Fort Worth.

“This is keeping independent banking in West Texas,” said ANB president William Ware, who represents the fifth generation of family ownership at ANB. “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 will retain its name, its iconic logo and its long-term reputation for great customer service.

Amarillo National Bank was awarded “Bankers of the Century” by Texas Monthly Magazine in 1999. Richard Ware, ANB’s Chairman, was named Banker of the Year by American Banker magazine in 2017. ANB has also been named one of the top 10 “Best Banks to Work For” in the country by American Banker.

ANB has been doing business in Lubbock for generations, working with large commercial businesses in West Texas. ANB has over 660 employees spread across 14 branches in Amarillo, one branch in Canyon, one branch in Borger and three branches in Lubbock. ANB has $4.14 billion in assets.

Lubbock National Bank is 101 years old and has approximately $1.08 billion in assets and over 160 employees across its 14 locations (including one loan production office in Fort Worth and two loan production offices in Austin). It operates under the name “Commerce National Bank” in Austin, Bryan/College Station and Fort Worth. 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.

Roger A. Key, Chairman of the Board of Lubbock National Bank, stated that the board of directors of LNB is “very pleased with its choice in acquisition partner.” Mr. Key is the grandson of Charles Ernest Maedgen, Sr., the founder of LNB. “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,” says Mr. Key. Mr. Key also noted that this transaction will generally provide a significant return to the shareholders of LNB’s holding company, Commerce National Financial Services, Inc.

The combined company is expected to have over $5 billion in assets at closing.

According to Eddie Schulz, President of Lubbock National Bank, the cultures of the two financial institutions are already very similar. “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.”

Informed Decisions LLC served as financial advisor and Alston & Bird LLP served as legal advisor to Amarillo National Bank in the transaction.

The Bank Advisory Group, L.L.C. and Vining Sparks IBG, L.P. served as financial advisors and Hunton Andrews Kurth LLP served as legal advisor to Lubbock National Bank in the transaction.

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, 2018. It is an all-cash transaction with closing anticipated in the first quarter of 2019.

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