Some executives familiar with the matter were quoted by the Houston Business Journal as saying that the transaction will strengthen its geographic footprint, while enabling it to deal with changing regulatory environment.
Allegiance Bank Texas CEO George Martinez told the newspaper, "The size is important in order to serve the Houston business community effectively.
"If you’re too small or you have too few locations, you can’t be convenient and you can’t provide the capital that businesses need."
The deal will provide required liquidity for its shareholders, as well as a public currency, which will allow it to make the bank deal with a combination of cash and stock, according to Martinez.
Following the conclusion of the transaction, which is likely to happen during the fourth quarter of 2013, the acquirer will have 10 branch offices with an average $100m in assets.
At the end of the second quarter of 2013, Independence had $133m in loans and $196m in deposits, whereas Allegiance had $633m and $757m in loans and deposits, respectively.
