Green Bancorp in Houston has agreed to buy Patriot Bancshares in Houston.
The $2.3 billion-asset Green said in a press release Wednesday that it will pay $139 million in common stock for the $1.3 billion-asset parent of Patriot Bank. Green said it also plans to redeem $27.3 million in preferred stock that Patriot issued the Treasury Department under the Troubled Asset Relief Program; those shares are now held by private investors.
The acquisition is expected to close in the fourth quarter.
"Our goal from the beginning was to build a [$5 billion-asset] bank with a geographic focus on the very attractive growth markets of Houston, Dallas-Fort Worth, and Austin," Manny Mehos, Green's chairman, said in the release. "This merger provides the necessary scale for Green Bank to be a significant competitor in our markets, as well as an extremely attractive merger partner for future deals."
Don Ellis, Patriot's chairman and chief executive, will join Green as vice chairman.
Green was advised by Jefferies and Skadden, Arps, Slate, Meagher & Flom. Patriot was advised by Keefe, Bruyette & Woods; Harris Law Firm and Fenimore, Kay, Harrison & Ford.