Independent Bank Group (IBTX) in McKinney, Texas, has agreed to buy Houston City Bancshares.
Independent said in a press release late Monday that it will pay about $48 million, or $86.96 a share, in cash and stock for the $323 million-asset Houston City. The $2.6 billion-asset Independent said it expects the acquisition to be immediately accretive to earnings per share and slightly dilutive to tangible book value at closing.
Houston City has six branches around Houston, along with $296 million in deposits and $26.6 million in equity capital.
Independent has a keen interest in Houston. Last year, it agreed to buy BOH Holdings, the parent of Bank of Houston, for $170 million in cash and stock.
"We are pleased to announce our first follow on acquisition in Houston, adding to our presence in this dynamic market," David Brooks, Independent's chairman and chief executive, said in a press release. Houston City "has a solid earning history and a strong credit culture. We are especially pleased that the Houston Community Bank senior management will join us as part of the transaction and become part of our Houston team."
Independent said it expects to complete the acquisition in the fourth quarter. Operational integration should begin early next year.
Independent was advised by Sandler O'Neill and Haynie Rake Repass & Lowry. Houston City was advised by Hovde Group and Harris Law Firm.