Texas-based Happy Bancshares Inc. agreed to purchase and assume the operations of Centennial Bank and its holding company Commerce BancShares Inc., which will become part of Happy State Bank.
The financial terms of the transaction were not disclosed in the news release.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southwest region between Aug. 15, 2018, and Aug. 15, 2019, averaged 181.19% of book and 185.52% of tangible book and had a median of 13.70x last-12-months earnings, on an aggregate basis.
Lubbock, Texas-based Centennial Bank holds about $800 million in total assets. Happy State Bank will assume Centennial Bank's roughly $585 million in loans and $679 million in deposits, according to the news release.
The deal is expected to close in the first quarter of 2020.
J. David Williams, chairman of Centennial Bank and Commerce BancShares, will serve in a new role on Happy State Bank's board.
Based on S&P Global Market Intelligence data, Happy State Bank had total assets of about $3.51 billion as of June 30. With the completion of the deal, Happy Bancshares will expand in Texas by 14 branches to be ranked No. 30 with a 0.39% share of approximately $881.9 billion in total market deposits.
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