International Bancshares Corp. of Laredo, Tex., the nation's largest minority-owned banking company, announced Tuesday that it had agreed to purchase National Bancshares Corp. of San Antonio for about $93.3 million in cash.
Acquiring $606 million-asset National Bancshares would give a big boost to the $6.1 billion-asset buyer's growing cross-border business.
International reported that 41.8% of its $3.6 billion of deposits at yearend, and 12.35% of its $2.25 billion loan portfolio, came from international sources, primarily Mexico. At National, 23.6% of its $508.4 million of deposits came from outside the United States, again, primarily from Mexico, the company reported.
International plans to pay $24.75 a share for National Bancshares' 3.8 million outstanding shares. The deal is expected to close in November.
Once the deal is completed, National would be merged into International's lead bank, International Bank of Commerce in Laredo.
International's chairman and chief executive officer Dennis E. Nixon said National's presence in Mexico was the "main thrust of this transaction." Roughly two-thirds of National's business is along the U.S.-Mexico border.
"We're committed to our border business and we work very actively to grow it," Mr. Nixon said.
News of the deal sent National stock soaring Tuesday. In midday trading it was up 30.7% from Monday's close, to $24.18 a share. International's stock was down 0.9%, to $40.
International is the holding company for four banks - International Bank of Commerce and Commerce Bank, both in Laredo, International Bank of Commerce in Brownsville, and International Bank of Commerce in Zapata. National's only subsidiary is NBC Bank in Eagle Pass.
