Texas-based bank holding firms Allegiance Bancshares and CBTX to merge
Allegiance Bancshares, the holding company of Allegiance Bank, and CBTX, the parent company of CommunityBank of Texas, have signed an all-stock merger of equals.
The deal is expected to create a combined bank holding company with an equity market capitalization of around $1.5 billion, which will also have the 17th largest deposit market share in Texas.
As per the terms of the deal, shareholders of Allegiance Bancshares will exchange each of their shares for 1.4184 shares of CBTX’s shares. This will give the former’s shareholders a stake of around 54% in the combined firm, while CBTX’ shareholders will own about 46%.
CBTX’ chairman and CEO Bob Franklin will be the CEO of the combined company.
Bob Franklin said: “Bringing two of the Houston region’s best community banks together is a great thing for our communities. Allegiance is a trusted, local bank, and there is no better team with which to unite to work together to preserve the tradition of community banking, while meeting the diverse needs of the customers that we serve.”
As of 30 September 2021, Allegiance Bancshares had $6.8 billion in assets under management. Based in Houston, the bank holding company has 27 banking locations in the Houston region.
On the other hand, CBTX’ subsidiary — CommunityBank of Texas is a commercial bank that caters to small and mid-sized businesses and professionals in Houston, Beaumont, Dallas, and surrounding communities in southeast Texas.
Steve Retzloff — Allegiance Bancshares CEO said: “We are very excited to partner with CBTX with whom we share culture, strategic vision and a commitment to our stakeholders. This transaction is a true merger of equals, combining the best of our highly-respected community banks which better positions us to serve our customers and drive enhanced financial performance.”
The merger, which is subject to regulatory approvals, approvals of shareholders of both the firms, and closing conditions, is expected to be finalized early in the second quarter of next year.