First Banks Inc. of St. Louis has agreed to buy First National Bank of Sachse, Tex., for $20.8 million in cash, 2.2 times the seller's book value.
First Banks, which has 10 branches in Texas, would add one more there by acquiring the $73.5 million-asset First National.
In a press release issued late Monday, the $8.8 billion-asset First Banks said the acquisition would fill a gap in its Dallas-area branch network. Sachse is about 20 miles northeast of Dallas.
Terrence M. McCarthy, First Banks' chief operating officer, said in an interview Tuesday that his company liked Sachse's income demographics and the First National management team, which he said is to be retained.
First Banks has announced four acquisition deals this year and completed one, for the $72.5 million-asset FBA Bancorp Inc. of Chicago in April. It has made two other acquisitions in Texas since 1994; the First National deal is expected to close in the fourth quarter.
