Veritex Holdings in Dallas has agreed to buy IBT Bancorp in Irving, Texas.
The $802 million-asset Veritex will pay about $21 million in cash and stock for the $121 million-asset IBT in a deal that is expected to close in the third quarter. The deal values IBT at about 170% of its tangible book value.
IBT is the fourth transaction for Veritex since 2010 and the first since Veritex completed its initial public offering last October. The deal is expected to be 9% accretive to Veritex's 2016 earnings per share. Any tangible book value dilution is expected to be earned back within three years.
IBT's "two locations, SBA loan experience, and seasoned bankers will all fit very well into the Veritex Bank family," C. Malcolm Holland, Veritex's chairman and chief executive officer, said in a press release Monday.
Veritex said it expects to cut annual costs by $1.2 million, representing about 27% of IBT's 2014 noninterest expenses. The company also expects to incur about $1.2 million in pretax merger-related expenses.
Veritex was advised by Stephens Inc. and Bracewell & Giuliani. IBT was advised by Commerce Street Capital and Haynie Rake Repass & Klimko.
