Allegiance Bancshares in Houston has sold two branches to Incommons Bank in Mexia, Texas.
The $2.1 billion-asset Allegiance said in a regulatory filing Tuesday that it sold the branches, located in the towns of Mart and Rosebud, to the $116 million-asset Incommons. Allegiance said it should book a $2 million pretax gain on the sales during the first quarter.
Allegiance said in its filing that its decision to sell the branches was “driven by its strategic plan to focus on the Houston metropolitan area.”
The branches, gained through Allegiance's purchase of Farmers and Merchant Bancshares, had $27 million in loans and $30 million in deposits, Frank Barlow, an analyst at Keefe, Bruyette and Woods, estimated in a November note to clients.