American Momentum Bank still plans to buy Brazos Valley Bank in College Station, Texas, according to an executive at the Tampa, Fla., bank.
Adam Bank Group Inc., the parent company of American Momentum, withdrew an application with the Federal Reserve to buy the $118.7 million-asset Brazos Valley in late September, according to a notice posted on the Fed’s website.
Sam A. Davis 2d, American Momentum's president and chief operating officer, wrote in an email to American Banker that the $650.6 million-asset acquirer actually filed a new application because the Fed declined to let the company amend its original paperwork. The first application mistakenly referred to American Momentum as a nationally chartered bank because management had once contemplated a charter change. Instead, the company decided to retain its state charter, creating a need to correct the application. The Fed accepted the new application on Oct. 3.
Davis noted that an application to merge the banks has been presented to the Federal Deposit Insurance Corp. and the state banking regulator in Florida. "At no time has there been any change of plans to acquire Brazos Valley Bank," he said. "It is a very strategic acquisition for the bank and the value of the acquisition has never been in question."
American Momentum, run by businessman Don Adam, did not disclose the price of the acquisition when it was announced. The company already has operations in College Station after it opened a branch there in early 2009.
Adam has enjoyed some success as a consolidator in Florida, buying two failed banks in July. Adam is noted for an unprecedented roll-up of 14 thrifts during the savings and loan crisis into First American Bank in Texas, which was sold in 2005 to Citigroup Inc.
Adam can also play the part of antagonist. Last year he pressured the management of Sterling Bancshares Inc. to improve performance. The Houston company ended up selling itself to Comerica Inc. in Dallas.