Texas United Bancshares Inc. of La Grange, which had said it wanted to expand in the state's biggest metropolitan markets, has a deal to buy Gateway National Bank in Dallas for $41 million in cash and stock.
Gateway, which has $207 million of assets and six branches, would raise its profile in the fast-growing Dallas-Fort Worth metroplex, which Texas United entered last year by buying GNB Bancshares Inc. of Gainesville.
L. Don Stricklin, Texas United's president and chief executive officer, said GNB's seven branches are in the outer suburbs, about 50 miles from Dallas. Gateway has five branches closer to the city and one in it.
The buyer, which has $1.1 billion of assets, announced the deal Monday; it is expected to close in the fourth quarter. The price is 3.3 times book value and almost 37 times Gateway's 2004 net income.
Mr. Stricklin said Gateway would operate as a subsidiary under its current name, management team, and board of directors.
