Introduction: 22nd State Banking Co.’s Reinvention Journey
Amid a wave of digital transformation in the banking sector, 22nd State Banking Co., a community bank based in Mobile, Alabama, is taking a bold new step. The bank is evolving its business model to introduce a national online small business lender under the banner of Always.bank. This move follows a series of strategic changes that the bank underwent last year, including the sale of three branches and shifting its headquarters to Mobile.
Steve Smith, CEO of 22nd State, stated, “Our vision is to build an advisor-led bank for small businesses that combines the convenience of modern digital banking with the trust and guidance of a true financial partner”.
Always.bank: A New Chapter in Digital Banking
The Always.bank digital platform was announced on Wednesday, marking the beginning of a new chapter for 22nd State. The platform will initially offer high-yield savings and certificates of deposit, with a full-scale launch planned for this summer. The bank is also setting up a new headquarters in Birmingham for this digital unit, which will function as a standalone subsidiary of 22nd State.
Always.bank’s technological foundation is provided by Linker Finance, based in Palo Alto, California. The platform includes cloud-based mobile and online banking capabilities, bringing state-of-the-art technology to community banks. This allows these institutions to compete on a level playing field with neobanks.
Jorge Garcia, Linker’s founder and CEO, expressed his excitement about the project, saying, “Steve and his team aren’t just launching a digital bank, they’re building a national community banking experience for ambitious Americans.”
22nd State Banking Co.’s Historical Background and Recent Moves
Founded in 1917 as Farmers Exchange Bank in Louisville, Alabama, 22nd State Banking Co. has a rich history. The bank underwent a rebranding in 2018, and in January 2024, it announced plans to relocate its headquarters to Mobile. It also sold five branches to the $3.7 billion-asset All In Credit Union in Daleville, Alabama, a deal that finally saw three branches changing hands.
22nd State has been working on the Always.bank concept for the past year, partnering with Linker last fall. It appointed LaCour Miller, a seasoned asset-based lender, as the managing director of specialty finance in January. The bank has been operating Always.bank in a soft-launch mode since the beginning of the year, preparing for the full-scale debut of its small-business banking platform.
Financial Footing and Industry Landscape
22nd State is in a strong financial position as it embarks on this digital transformation journey. The bank’s net income more than doubled from $2.5 million in 2024 to $5.3 million in 2025, according to the FDIC. Its core capital ratio was 12.77% on Dec. 31, well above the industry average of 9.26%.
In the broader industry context, 22nd State is not alone in its digital transformation. Other community banks, such as the $9 billion-asset Liberty Bank in Middletown, Connecticut, have also created national digital small-business brands. Liberty unveiled the online Owners Bank brand in April 2023, focusing on serving small businesses and sole proprietorships.
In conclusion, 22nd State Banking Co.’s digital transformation is a pivotal move in the bank’s reinvention journey. The bank’s ambition to provide modern digital banking with the trust and guidance of a dedicated financial partner is set to redefine its position in the banking industry. As a growing number of institutions turn to digital platforms, 22nd State’s decision to introduce the national online small business lender, Always.bank, marks a significant step towards becoming a future-ready banking institution.
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