Three years after
Since announcing the name change in May 2021, the $2.2 billion-asset Susser has grown loans 75% to $1.6 billion. After a strong year in 2023, which saw the opening of two branches and a company-record $15.3 million in net income, Susser reported a $4.8 million profit for the first three months of 2024, up 26% year over year. It's set to open another branch, its 10th, in Austin.
Those results testify to family-owned banks' special appeal, according to executives inside Susser, as well as outside observers. CEO Sam L. Susser and his family acquired the company, known formerly as Affiliated Bank, in 2018.
"Texas is known for a spirit of independence and rugged individualism," Justin Haywood, president and co-founder of Haywood Wealth Management in Houston, said. "Leaning into the narrative of a family-owned, independent bank aligns perfectly with that cultural ethos."
Family-owned banks "offer a unique selling proposition," Haywood said. "The emphasis on family values, personal relationships and community involvement can attract customers who prefer a more personalized banking experience."
"We believe Texas companies want to bank with Texas banks," Susser Chief Financial Officer Julie Anderson said. "Our story resonates really effectively with our clients and with people our clients introduce us to."
Anderson serves as a case-in-point.
A longtime veteran of the $29.1 billion-asset Texas Capital Bancshares in Dallas, where she served as chief financial officer from 2013 to 2021, Anderson had spent a year outside banking and planned to leave the industry for good when Susser lured her back. "I actually thought I was probably done with banking, that I was going to do something else," Anderson, who joined Susser in April 2023, said. "What resonated with me was Sam and just the strength of the family, how committed they are to this."
The Susser family wants to "build a multi-generational banking franchise which drives how we think about relationships," Anderson added.
Susser opened branches in Houston in March 2023 and San Antonio two months later. It expects to open a branch in Austin next month. The modest build-out provides Susser with a higher-profile presence in the Lone Star State's biggest metropolitan areas, offering a platform for continued organic growth.
"That's certainly the plan for the near-term,' Anderson said.
More specifically, Susser is seeking to boost share among small and midsize commercial businesses. "That's the sector that has seen the most growth the past four or five years, and we would expect [commercial-and-industrial lending] to account for the outsize portion of our growth over the next few years," Anderson said. Over the past two years, Susser's commercial and industrial portfolio grew a whopping 155%, reaching $595 million on March 31.
According to Sam Susser, who grew his family's fuel distribution business into a chain of more than 630 gas station convenience stores before its sale to Energy Transfer Company in 2014, Susser's compact size and flat organizational structure gives it an advantage over larger competitors. "They just aren't designed to be responsive, thoughtful and fast, which is a requirement for family-led, owner-led, owner-managed businesses," Susser said in a recent radio interview on KRLD-AM's CEO Spotlight program.
To ensure it has the necessary firepower, Susser closed a $40.3 million equity fundraising round in January. "It was kind of a friends-and-family raise that was all about growth capital," Anderson said. "We see opportunities in the marketplace."
For Anderson, Susser's progress is more than a little reminiscent of the heady early days at Texas Capital, which she joined in 1999, just a year after its launch.
"I've seen all this before," Anderson said. "This is my chance to do it again."
