River Bank & Trust keeps growing
October 2015
By David Zaslawsky
Photography by Robert Fouts
PRATTVILLE – Throughout a 20-minute interview, River Bank & Trust President and CEO Jimmy Stubbs repeatedly talked about the community bank culture.
Although much of the interview was about River Bank & Trust’s parent company acquiring the parent company of Keystone Bank, which has branches in Auburn, Opelika and Gadsden, Stubbs said that both banks “have a deep commitment to providing a community bank culture, where customers do enjoy a personal and very close relationship with their bankers.”
With combined assets of $700 million after the nearly $37 million merger is completed late this year, River Bank & Trust will become one of the state’s Top 10 largest community banks. There is no goal to be in the Top 5 or be No. 1. The goal, according to Stubbs, is to “continue to provide that River Bank & Trust culture of service and giving the little things that are important to people: no voice mail, windshield washing on Fridays at the drive-thru – to important items like being able to actually handle the banking request whatever the deposit need might be; whatever the loan need might be.”
He said he found it “interesting” that River Bank & Trust shareholders, who live in the communities where the bank operates, “want us to protect the community bank culture we created. They like that personal touch they get.”
Now, those shareholders have other priorities and expectations. They want to see a return on their investment; the share value to grow; and those dividends to keep coming, but that community bank culture is an important expectation.
The merger was a good opportunity for River Bank & Trust shareholders “because with size, you do create efficiencies,” Stubbs said. “With those efficiencies, you’re going to create a little bit more to the bottom line. From a shareholder’s perspective, that’s a first priority.”
The Keystone shareholders will receive one share of River Financial Corp. (parent company of River Bank & Trust) and will also receive $4 cash for each share. The combined bank will have $600 million in deposits and $450 million in loans.
The merger will actually take 12 to 24 months. Stubbs said that the last thing that will change is the name on the Keystone Bank branches to River Bank & Trust. The current focus for River Bank & Trust “is getting this merger right,” Stubbs said. “We want to make sure there is very little interruption that our customers will see and that our employees will see. When you’re undertaking a merger no matter what size it is – take your time and get it done right.”
There will be no layoffs, said Stubbs, who will be the CEO of the merged company, and Ray Smith, who was CEO of Keystone Bank, will serve as president. The combined company will have 130 employees, including River Bank & Trust’s current staff of 85. With the merger, River Bank & Trust won’t need to hire additional staff to handle the regulatory requirements, which continue to increase, according to Stubbs.
In addition to the acquisition, River Bank & Trust will open a full-service branch in Alexander City, where it now has a loan production office. Stubbs said that there will be future branches in Millbrook and Pike Road. The bank currently has two branches in Montgomery; two in Prattville, including the corporate headquarters; and one in Wetumpka.
Keystone Bank is not likely to be the last acquisition for River Bank & Trust, but the company is just considering Alabama. Other community banks may want to “join into a good management team; a good board team – so that they can continue to provide that community bank culture in their community with a culture that we think is a definitely (different) choice than a major holding bank culture,” Stubbs said. “We believe we can provide an alternative going forward, (rather) than the selling out to a multi-billion dollar company.”
Keystone Bank was an attractive target because it’s in a university town (Auburn University) and “most economists would agree that university towns are good towns to do business in and I don’t disagree with that,” Stubbs said. The proximity to River Bank & Trust also “makes for a good marriage,” he said.
Larry Puckett, president/owner of Larry Puckett Chevrolet in Prattville, will be the chairman of the combined bank. He is currently chairman of River Financial Corp. Murray Neighbors, who is current chairman of Keystone Bancshares, the parent company of Keystone Bank, will be the vice chairman of the combined bank.
Community bank rankings by assets Through 2014
1 > National Bank of Commerce (Birmingham) $908 million
2 > AloStar Bank of Commerce (Birmingham) $903 million
3 > Troy Bank & Trust (Troy) $837 million
4 > AuburnBank (Auburn) $790 million
5 > Metro Bank (Pell City) $661 million
6 > People’s Bank of Alabama (Cullman) $614 million
7 > Progress Bank & Trust (Huntsville) $580 million
8 > First US Bank (Thomasville) $573 million
9 > West Alabama Bank & Trust (Reform) $564 million
10 > First Metro Bank (Muscle Shoals) $525 million
11 > United Bank (Atmore) $489 million
12 > River Bank & Trust (Prattville) $447 million
Source: Banks Street Partners
