Veritex Holdings Inc. completed its cash-and-stock acquisition of Dallas peer Sovereign Bancshares Inc. on Aug. 1.
Under the deal terms, Veritex issued 5,117,647 common shares and paid approximately $56.2 million in cash for Sovereign's outstanding shares
Sovereign was the parent holding company of Sovereign Bank, which had nine branches and total assets of $1.0 billion, total loans of $789.9 million, and total deposits of $813.0 million at June 30. As of the same date, Veritex Holdings, which is the parent company of Veritex Community Bank, had $1.51 billion in assets.
In relation to the deal, Veritex issued 24,500 shares of its senior noncumulative perpetual preferred stock series D to the U.S. Treasury Department in exchange for the 24,500 shares of Sovereign Bancshares series C preferred stock held by Treasury.
Stephens Inc. was financial adviser to Veritex, with Norton Rose Fulbright US LP serving as legal counsel. Sandler & O'Neill & Partners LP was financial adviser to Sovereign while Fenimore Kay Harrison & Ford LLP was legal counsel.