Two banks based in New Mexico’s oil patch are merging in an effort to provide greater resources such as higher lending limits.
Earlier this month, Carlsbad-based Western Commerce Bank and Western Bank of Clovis announced a merger that would see the former acquire the latter. The deal was struck through the two banks’ parent companies, Western Commerce Bancshares of Carlsbad Inc. and Western Bancshares of Clovis Inc.
Western Commerce Bank CEO and President Jason Wyatt didn’t disclose the terms of the acquisition, nor the cost of the acquisition.
“Merging the two banks was the wish of my late grandfather, (Sen.) Don Kidd, former Chairman and CEO of both Western Bank of Clovis and Western Commerce Bank,” Wyatt said.
The deal is expected to be completed in the first quarter of next year after regulatory approvals, Wyatt said. The acquisition will give Western Commerce Bank 13 branches in Carlsbad, Loving, Hobbs, Tatum, Clovis, Lovington, Portales and Albuquerque. Once merged, the estimated size of the assets of the combined banks will be $750 million.
Wyatt said there will be no change in leadership of the two banks, considering they already share common management and ownership. But the acquisition will ultimately mean that Western Bank of Clovis will change its name and logo to that of Western Commerce Bank.
Western Commerce Bank first opened its doors in June 1961 and has since expanded to 11 locations across the state, though primarily located in southeastern New Mexico.
The bank originally held the name of Loving State Bank, but received the name of Western Commerce Bank in 1982. Western Commerce Bank acquired Federal Savings Bank in Carlsbad some years later, as well as Liberty National, located in Lovington, in 1991, according to the Carlsbad Current Argus.
Western Bank of Clovis, on the other hand, got its start in 1975 and had expanded into Portales before the recent acquisition was announced.