Guaranty Bancshares in Mount Pleasant, Texas, will enter the Houston market with an agreement to buy Westbound Bank in Katy, Texas.
The $2 billion-asset Guaranty said in a press release Monday that it will pay $6.4 million in cash and stock for the $228 million-asset Westbound. Westbound will be allowed to pay a cash distribution to its shareholders if its tangible equity exceeds $16.5 million at closing.
The deal is expected to close in the second quarter.
Westbound has four branches, $160.3 million in loans and $189 million in deposits.
“Our expansion into this growing region has been a part of our strategy for several years, and Westbound brings to us a proven team and excellent initial footprint to make that happen,” Ty Abston, Guaranty’s chairman and CEO, said in the release.
Troy England, Westbound’s CEO, will become Guaranty’s Houston-area chairman.
Guaranty was advised by Sandler O’Neill and Fenimore, Kay, Harrison. Westbound was advised by The Bank Advisory Group and Hunton & Williams.