Buffalo, Texas-based CitizensState Bank ($779.8 million as of Dec. 31, 2015) and Dawson, Texas-basedFirst Bank & Trust Co.($38.7 million as of March 31, 2016) are looking to merge, according to an interagency bank mergeract application recently obtained by S&P Global Market Intelligence.
Citizens State Bank will be the surviving institution after theclose of the transaction. Citizens State Bank is a unit of Industry Bancshares Inc., while First Bank & Trust isa subsidiary of Dawson Bancshares Inc.
In connection with the deal, First Bank's Hubbard, Texas, branchwill be consolidated with the branch of Citizens State Bank's Hubbard branch. FirstBank's branch in Dawson will become a branch of Citizens State Bank.
Industry Bancshares will also acquire 5,590 shares, or 97.74%,of Dawson Bancshares' common stock. Immediately following the acquisition of theDawson Bancshares stock, Dawson Bancshares will merge into Industry Bancshares,with the latter surviving the merger, and the remaining shareholders of Dawson Bancshareswill receive the same per-share consideration for their shares as the shareholdersof Industry Bancshares.
SNL valuations for bank and thrift targets in the Southwest regionbetween March 9, 2015, and March 9, 2016, averaged 153.39% of book, 161.98% of tangiblebook and had a median of 24.51x last-12-months earnings, on an aggregate basis.
Data compiled by SNL shows that Industry Bancshares will expandin Hill County, Texas, by one branch to be ranked first with a 39.53% share of approximately$547.9 million in total market deposits, and it will enter Navarro County, Texas,with one branch to be ranked seventh with a 4.00% share of about $696.2 millionin total market deposits.
Beard Kultgen Brophy Bostwick, represented by Richard BrophyJr., served as legal counsel to Industry Bancshares.