Allegiance Bancshares and CBTX have agreed to an all-stock merger of equals to create a combined lender with $11bn in assets.
The move will combine Allegiance’s Allegiance Bank and CBTX’s Community Bank of Texas in the region.
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Transaction Details
As agreed, Allegiance shareholders will be entitled to receive 1.4184 shares of CBTX common stock for each share they hold.
Allegiance shareholders will own around 54% of the combined company, while CBTX shareholders will own remaining stake.
The transaction is expected to complete in the second quarter of next year. The closure is subject to regulatory approvals, shareholders’ approvals and other customary closing conditions.
Benefits
The combined company is expected to deliver better performance and generate an estimated $35.5m of run-rate cost synergies by 2023.
Additionally, it will have stronger capital levels and better positioned for growth.
According to a statement, the combined company will have an equity market capitalisation of around $1.5bn. It will also have the 17th largest deposit market share in Texas.
Quotes
Allegiance CEO Steve Retzloff said: “Our companies complement each other beautifully and the combined company will be a formidable competitor across our markets. The combination is poised to deliver long-term value for our shareholders, customers, employees and communities.”
CBTX chairman, CEO and president 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.”
