Veritex Holdings has signed an agreement to acquire Green Bancorp, the parent company for Green Bank, in an all-stock transaction valued at approximately $1bn.

Pursuant to the terms of the agreement, Green Bancorp and Green Bank will merge with and into Veritex and its subsidiary Veritex Community Bank, respectively.

Upon completion of the merger, shareholders of Green will receive 0.79 shares of Veritex common stock for each share of Green common stock. Veritex and Green shareholders will jointly own nearly 45% and 55% of the united entity, respectively.

With 43 branches across Texas, the combined firm would have almost $7.5bn in assets, $5.6bn in loans and $5.9bn in deposits, based on the companies’ balance sheets as of 30 June 2018.

Veritex chairman and CEO C. Malcolm Holland said: “The merger with Green represents a tremendous financial and strategic opportunity for Veritex. In addition to producing significant accretion to EPS and improvements to virtually all of our key operating metrics, this merger results in a top 10 Texas-based community bank with virtually all of its franchise in the attractive MSAs of Dallas-Fort Worth and Houston.

Green Bancorp chairman and CEO Manny Mehos said: “The merger of Green and Veritex creates a uniquely focused Dallas/Fort Worth and Houston franchise. We believe this is the best possible combination for our shareholders, colleagues, and clients.”

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Holland will continue to serve as chairman and CEO of the combined company while Terry Earley, current CFO of Green, will assume the responsibility of CFO of the combined company.

Geoffrey Greenwade, current president of Green, will become the Houston president of the merged entity.

The board of directors of the merged entity will have nine members, six from Veritex’s current board of directors and three from Green’s current board of directors.

Veritex believes that the deal will be nearly 25% accretive to earnings per common share, excluding one-time charges.

Pending receipt of regulatory approvals, the transaction is slated to conclude in the first quarter of 2019.