In its third acquisition deal this year, Independent Bank Group (IBTX) in McKinney, Texas, has agreed to buy BOH Holdings in Houston.
Independent plans to pay $170 million in cash and stock for the $925 million-asset BOH, the companies announced Thursday. BOH runs six branches in the Houston area and had $747 million of deposits and total equity capital of $94 million as of Sept. 30.
BOH President and Chief Executive James Stein would join Independent's board, as would two additional BOH directors. Stein would also serve as vice chairman and chief executive of Independent's Houston region.
"The acquisition of BOH Holdings marks our entry into the dynamic Houston market and, as a result, Independent Bank now has a significant presence in three of the nation's strongest markets: Dallas, Austin, and Houston," Independent Chairman and Chief Executive David Brooks said in a press release.
The rapidly expanding Independent agreed in August to buy Live Oak Financial Corp. in Dallas for $20 million. In July, the $1.9 billion-asset company agreed to pay $29 million for Collin Bank in Plano, Texas. Independent said it expects to have $3.2 billion of assets upon completion of the three pending acquisitions.
The BOH deal is expected to close in the second quarter.
Independent Bank Group was advised by Sterne, Agee & Leach. Haynie Rake Repass & Lowry served as as legal counsel. BOH Holdings was advised by Sandler & O'Neill Partners as financial advisor and Bracewell & Giuliani as legal counsel.