Spirit of Texas snags deposit-rich target in latest acquisition
Spirit of Texas Bancshares in Conroe has agreed to buy Comanche National in Texas for roughly $55.9 million.
The deal, which involves cash and stock, would bolster the $1 billion-asset Spirit's existing banking efforts in north central Texas and expand its footprint into deposit-rich counties of Comanche, Jack, Palo Pinto and Parker, located west of Dallas-Fort Worth. Comanche had a loan-to-deposit ratio of roughly 38% at March 31, according to data from the Federal Deposit Insurance Corp.
Once the deal closes, Spirit will have two dozen branches.
“Comanche National Bank expands our north Texas presence and has a proven history of strong earnings and sound asset quality,” Dean Bass, Spirit’s chairman and CEO, said in a press release on Thursday.
Once the deal closes, William “Kendall” Nix, chairman and CEO of the $358 million-asset Comanche National, will join Spirit’s board and serve as vice chairman of Spirit of Texas Bank.
The deal is expected to close in the fourth quarter. Under the agreement, Spirit will issue roughly 2.1 million shares of common stock as well as pay $12.2 million in cash to Comanche National shareholders. Comanche shareholders will own roughly 18% of outstanding capital stock.
This acquisition would be Spirit’s eighth in Texas and the first since it became a public company earlier this year, Bass said in the press release.
Stephens acted as financial adviser to Spirit and also issued a fairness opinion. Piper Jaffray acted as financial advisers to Comanche and rendered a fairness opinion to the board. Hunton Andrews Kurth acted as legal counsel to Spirit and Fenimore, Kay, Harrison & Ford served as legal counsel to Comanche.