SAN ANTONIO–(BUSINESS WIRE)–Three affiliated banks have agreed to merge to kind a singular Central Texas banking franchise in San Antonio, Austin and the Texas Hill Nation.
Southwest Bancshares, Inc. (SWB), bank holding firm for The Bank of San Antonio (www.bankofsa.com), Capitol of Texas Bancshares, Inc. (COTB), bank holding firm for The Bank of Austin (www.thebankofaustin.com) and Texas Hill Nation Bancshares, Inc. (THCB), bank holding firm for Texas Hill Nation Bank (www.texashillcountrybank.com) introduced right now they’ve agreed to merge into one bank holding firm, as Southwest Bancshares, Inc., topic to regulatory and shareholder approvals. The merger settlement has been unanimously accredited by the Impartial Committees for Capitol of Texas Bancshares, Inc. and Texas Hill Nation Bancshares, Inc. and the Board of Administrators of all three bank holding corporations.
The transaction is predicted to shut within the fourth quarter of this 12 months, in response to J. Bruce Bugg Jr., Chairman, President and Chief Government Officer of all three bank holding corporations. Upon completion of the transaction, Bugg will proceed as Chairman, President and Chief Government Officer of the surviving holding firm, Southwest Bancshares, Inc.
As of May 31, 2020, on a proforma foundation, the mixed banks would have complete belongings of $1,467,136,824, complete deposits of $1,284,611,686 and complete fairness of $133,647,901.
“These three bank holding companies have many common shareholders and are affiliated with each other,” Bugg stated. “It just made strategic sense for them to combine into one Central Texas banking franchise which covers San Antonio and Austin, the second and third fastest-growing large American cities, respectively, and the Texas Hill Country which also has a strong and growing economic base.”
“It’s very humbling for me to remember how we started The Bank of San Antonio in 2007 with a small group of friends among San Antonio’s business and civic leaders who made up the Board of Directors and founding shareholders, with the goal of serving locally-owned businesses in San Antonio,” he stated. “We started The Bank of San Antonio with $25 million in capital and belongings, and it has grown remarkably to greater than $1 billion in belongings in simply 13 years.
“In 2009, again joined by a small group of friends, we built a great Board of Directors and founding shareholders, to start Texas Hill Country Bank, and then again in 2017 with a small group of friends and business leaders in Austin, we started The Bank of Austin,” Bugg stated.
“Today, we announce that these three banks are merging with a combined proforma asset base of approximately $1.5 billion. The service promise for all three banks serving locally owned businesses has proven to be a successful strategy, and this merger will continue the culture and tradition of serving local businesses and communities throughout our new Central Texas banking franchise.”
Below the definitive merger settlement, Capitol of Texas Bancshares, Inc. and Texas Hill Nation Bancshares, Inc. will merge with and into Southwest Bancshares, Inc. The banks shall be merged into one bank constitution, however every of the banks will preserve their present names, govt administration groups and board of administrators to protect their tradition and proceed to serve the wants of their respective communities.
“The combination of these three banks under a single bank holding company will create a Central Texas banking franchise to provide enhanced scale that will drive organic growth and increase profitability,” Bugg stated.
The Bank of San Antonio has 5 banking facilities in San Antonio, The Bank of Austin presently has one banking heart in Austin and Texas Hill Nation Bank has two banking facilities in Kerrville, one in Bandera and one in Fredericksburg.
The Bank of San Antonio President and CEO Brent R. Given stated, “In our 13-year history, The Bank of San Antonio as seen extraordinary growth as clients have embraced our business model – relationship-centric, concierge-quality service and targeted strategic solutions. The Bank of San Antonio’s broad depth of resources, together with our new partners’ strong local ownership, management and market intelligence, makes for a powerful combination that will enable us to continue to expand our Central Texas market share.”
Jon Eckert, President and CEO of The Bank of Austin, stated, “The Bank of Austin was founded by a diverse group of Austin’s business leaders to be our city’s business bank. It’s been only three years since we opened the doors, but this bank has already had a strong impact on our community. This merger will give The Bank of Austin the ability to deliver a higher level of service, unparalleled in the Austin market.”
Texas Hill Nation Bank President and CEO Roy Thompson stated, “Becoming part of such a strong banking combination with our neighbors in San Antonio and Austin just brings more opportunities for our clients and easy access to more resources. Combining these three geographic elements of Central Texas into one, regionally-focused banking group just adds to our advantage.”
After the merger of those three banks is accomplished, The Bank of San Antonio will proceed to function underneath the commerce identify “The Bank of San Antonio”, and can proceed to be led by Brent Given, its President and CEO. Texas Hill Nation Bank will proceed to function underneath the commerce identify “Texas Hill Country Bank”, with persevering with management by Roy Thompson, its President and CEO. Jon Eckert, President and CEO, will proceed his management of The Bank of Austin, which is able to proceed to function underneath the commerce identify “The Bank of Austin.”
As well as, Brent Given was elected by the Board of Southwest Bancshares, Inc. to function Government Vice President and Chief Working Officer of Southwest Bancshares, Inc., overseeing the bank operations of all three banks.
Southwest Bancshares, Inc., Capitol of Texas Bancshares, Inc., and Texas Hill Nation Bancshares, Inc. are privately owned by shareholders in every of the respective areas of San Antonio, Austin and the Texas Hill Nation. Phrases of the transaction weren’t disclosed.