Trustmark Corp. in Jackson, Miss., said late Thursday that it has a deal agreement to acquire Republic Bancshares Inc. in Houston for $210 million in cash and stock.
Republic has $654 million in assets and six branches. It would be Trustmark's first acquisition in Houston since it entered the market in 2004 with its acquisition of $210 million-asset Allied Bank.
"This acquisition complements our existing Houston presence and substantially advances our strategy by adding a superior quality commercial banking franchise," Trustmark chairman and chief executive Richard G. Hickson said in a news release.
Republic, founded in 1998, has reported average asset, deposit and loan growth of above 20% a year since 2000 and its net income has increased by an average 56% a year, to $6.6 million in 2005.
The deal agreement values Republic at 4.8 times its book value and is expected to close in the third quarter.
Trustmark has $8.2 billion of assets and already has five branches in Texas. The company also had previously announced plans to open five branches in the Houston area.
C.P. "Chip" Bryan, Republic's chairman and CEO would become chairman and CEO of Trustmark-Texas and also join the board of Trustmark National Bank.
