Business First Bancshares, the holding company of bank, and Texas Citizens Bancorp have signed a definitive agreement under which Business First will acquire Texas Citizens Bancorp and its wholly-owned banking subsidiary, Texas Citizens Bank. After the transaction closes, the combined institution is expected to have total consolidated assets of approximately $ 4.9 billion.
“We have succeeded in diversifying our geographic exposure in recent years. This partnership with the Texas Citizens Bank, by moving us a little further on I-10 in the Houston market, is an opportunity for us to accelerate our transition to a regional institution ”, declared Jude Melville, president- Managing Director of Business First. “Our two companies are focused on serving similar customers in a similar fashion, particularly small businesses, and we anticipate relatively seamless integration of operational systems and, more importantly, cultural approaches. We look forward to using our combined strength to benefit existing and new customers in one of the most potential regions of the country.
As of September 30, Business First had total assets of $ 4.4 billion, total loans of $ 3.1 billion, total deposits of $ 3.8 billion, and total equity of 430.2 million. dollars, compared to an estimated total assets of $ 516.9 million for citizens of Texas, or $ 365.7 million in total. loans, $ 452 million in total deposits and $ 34.6 million in ordinary equity. Texas Citizens Bank, founded in 2006, has its headquarters and six branches in the Houston area.
Duncan Stewart, president and CEO of Texas Citizens Bank, will join b1BANK and serve as president of the Houston region, leading business development efforts.
“Texas Citizens Bank has been successful in serving owner-managed businesses in the Houston area since our inception,” said Stewart. “The significant efforts of our team to strengthen our institution enabled the OCC to recently lift the formal agreement. We believe that our partnership with b1BANK will further strengthen the bank by improving our customer experience and our long-term contributions to the local community.
Mike Cornett, president of Texas Citizens Bank, will also join the b1BANK team as vice president in Houston. Don Hingle, who is currently Executive Vice President and Director of Market Development for b1BANK, will move to Houston as Regional President in Houston. Hingle has 39 years of banking experience and has spent the last 12 with b1BANK, holding a variety of positions including Market President, Regional President and Chief Credit Officer.
Under the merger agreement, which was unanimously approved by the boards of directors of each company, shareholders of Texas Citizens will receive 0.7038 Business First shares for each common share of Texas Citizens they own. (with cash payment instead of fractional shares), or approximately 2.1 million common shares of Business First. After the transaction closes, former Texas Citizens shareholders will own approximately 9.7% of the combined company.
Based on Business First’s closing share price of $ 25.30 as of October 19, the transaction is valued at approximately $ 52.9 million in total. The merger agreement contains the customary representations, warranties and covenants of Texas Citizens and Business First and is subject to customary closing conditions, including the approval of shareholders of Texas Citizens and receipt of customary regulatory approvals. The transaction is expected to be finalized during Q1 / 22.
Stephens acted as financial advisor to Business First and Fenimore Kay Harrison as legal advisor. Piper Sandler acted as financial advisor to Texas Citizens and Bracewell acted as legal advisor.