Spirit of Texas Bancshares will expand its footprint into the Beeville, San Antonio and Corpus Christi, TX, markets with its acquisition of First Beeville Financial and its subsidiary, The First National Bank of Beeville.
The cash and stock transaction is valued at approximately $63.7 million based on Spirit’s closing price of $19.81 per share on November 26, 2018.
The transaction is Spirit’s ninth acquisition since 2008 and will be the second acquisition since the company’s May 2018 initial public offering. The acquisition will add three full-service branches and three loan production offices to Spirit’s offerings.
Dean O. Bass, Spirit’s chairman and CEO, stated, “We’ve been looking for effective ways to expand our footprint into South Texas and this acquisition is a perfect fit for our culture and our future business plans in this region. The transaction, which is expected to be immediately accretive to earnings, provides a great opportunity to leverage the strengths of our combined organizations and make available to the Beeville customer base and markets a wider array of financial solutions. We look forward to welcoming Beeville’s bankers, customers, shareholders, and employees as we continue to develop our presence throughout the South Texas region in the years ahead.”
Under the terms of the transaction, Spirit will issue 1,579,268 shares of its common stock and pay $32.4 million in cash, subject to certain adjustments, to the shareholders of First Beeville Financial.
Both boards of directors unanimously approved the transaction, and the directors of Beeville have entered into agreements with Spirit to vote their shares of Beeville common stock in favor of the transaction.
The transaction is expected to close in the second quarter of 2019, subject to customary closing conditions, including regulatory approvals and the approval of Beeville’s shareholders.
Upon completion of the transaction, Brian Schneider, chairman and president of Beeville, and Kent Fry, executive vice president and chief lending officer of the bank, will join Spirit of Texas Bank management. Additionally, Allen C. Jones IV will be appointed to the Spirit board of directors, and Brannon Brooke and George G. Latcham will be appointed to the bank board of directors.
Stephens served as exclusive financial advisor for, and rendered a fairness opinion to Spirit, while Hunton Andrews Kurth served as legal counsel. Sheshunoff & Co. served as exclusive financial advisor for, and rendered a fairness opinion to Beeville, while Fenimore, Kay, Harrison & Ford served as legal counsel.
Founded in 1890, The First National Bank of Beeville offers personal and commercial banking services.
Spirit of Texas Bank provides a wide range of relationship-driven commercial banking products and services and operates in the Houston, Dallas/Fort Worth, North Central Texas and Bryan/College Station markets.
