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Acquisition Happy bank buys Citibank offices By George
Schwarz Happy State Bank & Trust has inked a deal to acquire all eight Panhandle offices of Citibank.
J. Pat Hickman, chairman and chief executive, announced the move at a news conference March 5. The transaction is projected to close in the second quarter, following regulatory approval, which Hickman expected to occur without problems. Citibank had approached Happy and Happy’s bankers had been working on the deal for well over a year. "It was the perfect fit for us,” he said, adding Happy has always been aggressive in its growth and will continue to seek growth — as long as it’s in the Panhandle. "The actual day of our 100th anniversary is (Sunday) June 1,” he said. "We do think we’ll open our doors as Happy State Bank in those Citi locations on June 2. So they’ll miss being part of our first 100 years, but we’re sure going to have them the next hundred.” How happy is Happy? "We even thought about changing our name to Elated State Bank, but we thought Happy would be just a good medium and a good place to stay.” The purchase brings Happy’s assets to $900 million. Eighteen years ago, Happy was a $10 million bank ranked 812th of 880 banks in the state. Now, with 706 banks in Texas, Happy ranks 83rd and the acquisition will move the bank to 47th in size, he said. "What it also does, though, it has a huge impact on our market share here in Amarillo,” he said. "It’s going to redraw banking here in Amarillo.” Each June, banks nationwide report deposits. Last June, Happy State Bank was fourth in the market with 6.9 percent of the business. Citi was sixth with about 4.5 percent. The acquisition moves Happy into the second spot in market share. "We’re still a long way from the 800-pound gorilla, Amarillo National, but we’re getting close,” he said. "The one thing that is exciting about it is that you have two local community banks moved up into the top two banks in the area, rather than the large national banks.” The acquisition will move Happy State Bank into two new markets — Hereford and Pampa. Large national banks don’t fare as well in this market because they don’t understand the agribusiness and that’s the mainstay of the Panhandle’s economy. Medical ranks second, he said. Happy understands the agriculture economy better than other banks and will continue to make that market segment its mainstay. Hickman praised Citibank’s employees. But, when there is a problem, employees can’t make the local decisions. Happy’s bankers are local, going to school and church and participating in community activities. Customers know how to reach their banker, he said. "If they (customers) don’t like what we do, they’ll track us down and we’ve got to answer it. It just provides a greater service level.” The transaction won’t affect the plans for a new building on 10th between Pierce and Buchanan, but some of the Citibank buildings will be offered for sale, he said. "We absolutely do not plan on making any layoffs.” All the Citibank employees are "front-line,” tellers and other customer service personnel; none of the acquisition is "back room,” such as accountants and other nonpublic employees, he said. "So in actuality, we’re probably going to need to hire.” Happy currently has offices in Happy, Amarillo, Canyon, Dalhart, Dumas, Panhandle, Plainview, Sunray, Stratford and Borger (which is scheduled to open in early April). E-mail
comments about this story Posted: March 13, 2008
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