Business First Bancshares has signed a definitive agreement to acquire Texas Citizens Bancorp and its wholly-owned bank subsidiary Texas Citizens Bank, National Association.
Under the terms of the agreement, b1BANK’s parent Business First will offer 0.7038 shares to shareholders for each share of Texas Citizens common stock held.
Based on Business First’s closing stock price of $25.3 on 19 October 2021, the aggregate value of the transaction is approximately $52.9m.
Upon the deal completion, Texas Citizens shareholders will own approximately 9.7% of the combined entity, which will have $4.9bn in assets.
Business First president and CEO Jude Melville said: “We have experienced success diversifying our geographic exposure over the past few years. This partnership with Texas Citizens Bank, by moving us a little farther down I-10 into the Houston market, is an opportunity for us to accelerate our transition into a regional institution.”
As of 30 September 2021, Texas Citizens had $516.9m assets, $365.7m in loans, $452.0m in deposits and $34.6m in common shareholders’ equity.
As per the agreement, Texas Citizens Bank chairman and CEO Duncan Stewart will join b1BANK as chairman of the Houston region.
Stewart said: “Texas Citizens Bank has been successful in serving Houston area owner-managed businesses since our inception. We believe that our partnership with b1BANK will further strengthen the bank by enhancing our customer experience and our long-term contributions to the local community.”
The transaction is subject to regulatory approval and is expected to close in the first quarter of 2022.