Total consideration to be paid by Independent Bank has been valued at nearly $29.1m, of which almost 65% will be payable in cash and remaining 35% will be reimbursed in shares of the acquirer’s common stock.
Commenting on the acquisition, Independent Bank Group chairman and CEO David Brooks said that the acquisitions within its existing markets are a component of its growth strategy and the recent deal will boost its footprint in Collin County, Texas.
Additionally, the transaction will also enable the lender to combine its current Plano office and team with the Collin Bank location and lenders to serve as a platform to grow additional loans and deposits in its Dallas/North Texas Region.
Collin Bank board chairman Martin Adler commented, "We view this as an opportunity to become part of a larger community bank that affords our customers additional products, a larger branch network, and the financial strength of a proven independent banking organization."
The acquired entity, which trades as a full service commercial bank, had total assets of $204.1m, total deposits of $161.9m, and total equity capital of $25.8m as at 31 March 2013.
Already approved by the boards of directors of both companies, the transaction is subject to concerned regulatory approvals and is likely to complete in the fourth quarter of 2013.
Sandler + O’Neill Partners and Haynie Rake Repass & Lowry were hired to serve as advisers for Independent Bank, while Commerce Street Capital, Patton Boggs, advised Collin Bank.
