On January 19, The State National Bank of Groom and its parent holding company, Groom Bancshares Inc., announced an acquisition agreement with 5th Generation Holdings Inc., a community-bank-focused entity formed for purposes of the transaction. As a result of the acquisition, 5th Generation Holdings will become a bank holding company for The State National Bank of Groom, which will continue to operate under the same name as a nationally chartered bank. Regulatory approval is expected in the second quarter of 2023.
Established in 1904, The State National Bank of Groom reported assets of more than $40 million as of December 31, 2022, and operates banking offices in Groom and Amarillo.
“The combination of adding management and experience in community banking, additional capital from local investors and continued local decision-making will enable us to increase our lending limit and provide additional services to our current and future customers, resulting in an expanded footprint in the region,” notes Dusty Sloan, president and CEO of The State National Bank of Groom. “The staff and I are extremely excited about the future of the bank and for our customers and the communities we serve.”
“We know community banking is the lifeblood for rural communities and small businesses,” adds Deke Alexander, president of 5th Generation Holdings Inc. “Our desire is to play a complementary part in the economic and socio-economic development in the region. We will begin with serving the needs of our current and future customers’ households and businesses with new products, services and loans, while deploying capital and making tangible investments within the communities we will serve.”
Sloan will continue serving as CEO of the bank. Alexander, who will reside in Groom with his family, will assume the role of president and will bring on board additional team members with a combined 236 years of community banking experience. The directors will consist of local shareholders from the Panhandle region, persons associated with 5th Generation Holdings Inc. and two current directors of The State National Bank of Groom.
“Community banks play an important role in rural communities,” says Lance Ollinger, one of the proposed directors. “Banks are at the heart of these communities, facilitating growth and providing support to both individuals and businesses. Deke understands that community banking begins in the community—and our journey begins in Groom, Texas.”
“The State National Bank of Groom is committed to our current employees and customers and the communities where they live and work, and we look forward to expanding, welcoming new employees and becoming a premier community bank and employer in our region,” adds Sheri Urbancyzk, a current director of The State National Bank of Groom.
5th Generation Holdings Inc. was advised in the transaction by Robert Flowers and Jera Bradshaw of Bradley Arant Boult Cummings LLP and John Gosser of Commerce Street Capital LLC. The State National Bank of Groom was advised by Jacque Kruppa of Hunton Andrews Kurth LLP.
