Local bank consolidation won’t affect consumer operations

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While the process is still underway, legal notifications regarding the consolidation with the First National Bank of Aspermont and the Interim Bank of Aspermont have many locals concerned about the future of local banking, but FNBA President Ralph Riddle assured customers earlier this week the changes are simply part of corporate restructuring and will no way affect business.

“At the customer level, no one will notice any difference,” said Riddle. He went on to put to rest concerns the bank was being sold — as it is not — and dispelled rumors FNAB was purchasing a Lubbock bank — although the formation of a holding company would make mergers and acquisitions simpler.

A majority of the banks in the state of Texas operate under a similar holding company structure, including the First National Bank of Rotan in neighboring Fisher County.

Three of the 10 proposals the Federal Reserve Bank of Dallas received during the week it received Aspermont’s were to form similar holding companies, and 100% of those remaining were for mergers or acquisitions. The flexibility afforded to holding companies for such transactions is one reason the shareholders are looking to restructure.

Before branch banking was available in Texas, there were multi-bank holding companies, a structure that allowed banks to expand. Holding companies would purchase a number of banks over time, and each bank would technically...

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