Thursday, August 28, 1997
Security State to merge with Lubbock bank
By BRIAN BETHEL / Abilene Reporter-News
Security State Bank of Abilene and American State Bank of Lubbock
announced Wednesday they plan to merge.
The merger, pending regulatory and stockholder approval, should
be completed early next year, bank officials said.
Under the agreement, American State Bank would acquire Security
State. Bank officials said the transaction will be structured
as a merger of the holding companies -- American State Financial
Corporation and Security Shares Inc. -- with both banks operating
independently.
The merger should make more services to Security State customers,
said Kenneth L. Burgess, chairman and CEO.
"Our banking philosophies are so similar we really don't
anticipate any major changes for our customers," Burgess
said.
"Instead, we'll have the opportunity to offer even better
service. We'll be able to give our customers, employees and West
Texas more," Burgess said.
American State Bank's W.R. Collier, president and chairman,
said the company is "excited" about the opportunity
to expand its markets into the Abilene area.
"We feel that Security State Bank's commitment to its
community and its employees, as well as its history of success
and profitability, make it a perfect match for us," Collier
said.
"We had been looking for a good, solid investment,"
he said. "We found one in Security State Bank."
From customers' perspectives, they should be banking with the
same institution for all intents and purposes -- just better in
many ways, Burgess said.
A complete list of anticipated service alterations wasn't available,
but some that are planned -- like trust services -- should be
a boon to customers, he said.
The merged holding company will have total assets in excess
of $1 billion, meaning greater lending capacity.
But the name, who is in charge and standard procedures at Security
State should remain the same for the foreseeable future.
Regulatory approval must come first, then two-thirds of stockholders
must agree to sell. The transaction should be completed in the
first quarter of 1998, Collier said.
Security State stockholders will get cash and will have the
opportunity to buy stock once the merger is completed, Burgess
said.
Burgess said he thinks stockholders will be "very pleased"
with the price they will get for their shares, calling the pending
sale "a good deal."
The merger will affect Security State banks in Abilene, Big
Spring, Comanche, Early, Merkel and Gorman. American State has
banks in Brownfield, Floydada, Levelland, Littlefield, Plainview
and Snyder.
"We're excited that after the transaction, our service
area will continue to be served by a community-oriented, independent
bank," Burgess said.
Collier said knowing Burgess for 30 years as a fellow banker
helped the decision. The two institutions have been talking about
the possibility of a merger for about 45 days.
"We know our philosophies will mesh because we know each
other," he said. "We're both very pleased with the prospects
and what we will be able to offer customers."
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Abilene Reporter-News / Texnews / E.W. Scripps Publications
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