trending Market Intelligence /marketintelligence/en/news-insights/trending/tRcl1rdnOa-YS6Zyxg_UYQ2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Texas-based First Financial Bankshares acquiring Commercial Bancshares

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery


Texas-based First Financial Bankshares acquiring Commercial Bancshares

In Texas, Abilene-based First Financial Bankshares Inc. is acquiring Kingwood-based Commercial Bancshares Inc. for approximately $59.4 million in stock.

The deal terms also include a special dividend payout of about $15.6 million to Commercial shareholders, though the figure is subject to change.

On an aggregate basis, SNL calculates the deal value to be 195.5% of book, 199.0% of tangible book, and 14.6x earnings. The price is 19.27% of deposits, 17.69% of assets and the tangible book premium-to-core deposits ratio is 10.66%.

SNL valuations for bank and thrift targets in the Southwest region between Oct. 12, 2016, and Oct. 12, 2017, averaged 160.39% of book, 176.21% of tangible book and had a median of 19.49x last-12-month earnings, on an aggregate basis.

Commercial State Bank had $366.8 million in assets, $263.8 million in loans and $322.1 million in deposits as of Sept. 30, according to a press release. First Financial Bank NA had $6.92 billion in assets as of June 30, according to SNL data.

The merger, which is still subject to regulatory and shareholder approvals, is expected to close in the first quarter of 2018.

SNL data shows that, in Texas, First Financial Bankshares will expand in Montgomery County by one branch to be ranked seventh with a 3.78% share of about $11.96 billion in total market deposits. Also, the company will enter Fort Bend County with one branch to be ranked No. 34 with a 0.19% share of roughly $13.14 billion in total market deposits, Matagorda County with one branch to be ranked third with a 11.68% share of about $528.0 million in total market deposits, and Wharton County with one branch to be ranked fourth with a 9.35% share of roughly $1.07 billion in total market deposits.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, click here. To create custom maps, click here.

SNL is an offering of S&P Global Market Intelligence.

SNL Image