Allegiance to Buy Independence Bank in Houston

Allegiance Bancshares has agreed to buy the $220 million-asset Independence Bank. Both are in Houston.

The deal, expected to be completed in the fourth quarter, would push Allegiance over $1 billion of assets.

"The size is important in order to serve the Houston business community effectively," Chief Executive George Martinez told the Houston Business Journal, which reported the agreement Monday. "If you're too small or you have too few locations, you can't be convenient and you can't provide the capital that businesses need."

Allegiance Bancshares, the holding company for Allegiance Bank Texas, has seven branches in the Houston area and would gain three in the Independence deal.

Independence would also provide Allegiance with loans of $133 million and deposits of $196 million. Allegiance has assets of $798 million.

Officials at Allegiance confirmed the deal Tuesday. Financial terms were not disclosed.

Allegiance opened in 2007, and Independence opened in 2002.