Case Analysis : Firstbank & Trust

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FirstBank & Trust is headquartered in Lubbock, TX, where it began as an equipment finance and mortgage servicing company, hereinafter referred to as “FirstBank” or “the Bank”. In 1996, the investors purchased a bank charter in White Deer, TX, then relocated it to Lubbock, TX and opened the Banks doors with $10 million in assets under the supervision of the Federal Deposit Insurance Corporation (FDIC). As of September 30, 2015, the Bank had 245 employees with 8 branches across West Texas with total reported assets of $788,502,000 and total reported deposits of $656,917,000. FirstBank has evolved from a focus in equipment finance to a primary concentration in commercial banking. Through June 2007, the Bank was localized to Lubbock, TX, operating with 2 bank branches serving Lubbock County. To date, the Bank encompasses three additional counties including Lynn, Scurry and Mitchell counties and has expanded to 8 branches. Additionally, the Bank has expanded its Mortgage presence from 3 locations to 6 locations since 2007. The Banks primary objective is to maximize shareholder value through customer acquisitions, strong margins, bank acquisitions and eventually a sale to a larger institution. Management’s primary strategic goal is to achieve a target of $1 billion in assets. The objective of this report is to review FirstBank’s historical performance and the current economic conditions of the local trade area and national economies in order to develop an educated

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