Texas-based American Bank to acquire TexStar National Bank

Corpus Christi, Texas-based American Bank NA, a subsidiary of American Bank Holding Corp., agreed to acquire Universal City, Texas-based TexStar National Bank.

The transaction was unanimously approved by the boards of TexStar National Bank and American Bank, as well as both banks' holding companies. It is subject to customary closing conditions, including regulatory approvals.

S&P Global Market Intelligence valuations for bank and thrift targets in the Southwest region between June 7, 2021, and June 7, 2022, averaged 166.94% of book and 176.39% of tangible book and had a median of 13.99x last-12-months earnings, on an aggregate basis.

TexStar National Bank, a subsidiary of TexStar Bancshares Inc., had total assets of $458 million as of March 31 and has six locations in the San Antonio area. Following the completion of the deal, TexStar National Bank will merge with and into American Bank.

The combined bank will operate under the American Bank name and brand. It will have total assets of approximately $2.5 billion with locations in the Corpus Christi, Port Aransas, Rockport, Victoria, Goliad, San Antonio, New Braunfels, Austin and Houston markets in Texas, according to a news release.

Based on Market Intelligence data, with the completion of the deal, American Bank Holding will expand in Bexar County, Texas, by five branches to be ranked 15th with a 0.27% share of approximately $160.38 billion in total market deposits and will enter Comal County, Texas, with one branch to be ranked 12th with a 1.62% share of about $2.83 billion in total market deposits.

As part of the merger, TexStar National Bank Chairman and CEO Byron Bexley will assume the role of vice chairman for the San Antonio market and will lead American Bank's commercial banking activities in San Antonio. Manny Ruiz, current president and senior lending officer of TexStar National Bank, will become American Bank's president for the San Antonio market.

Stephens Inc. was exclusive financial adviser for the board of American Bank and Norton Rose Fulbright US LLP was legal counsel to American Bank. The Hovde Group was exclusive financial adviser and rendered a fairness opinion to the TexStar National Bank board, and Waller Lansden Dortch & Davis LLP was legal counsel to TexStar National Bank.

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