Texas United Bancshares Announces Acquisition of The Express Bank
27 Oktober 2005 - 1:54AM
PR Newswire (US)
LA GRANGE, Texas, Oct. 26 /PRNewswire-FirstCall/ -- Texas United
Bancshares, Inc. (NASDAQ:TXUI) ("Texas United") announced today the
signing of a definitive agreement providing for the acquisition of
The Express Bank of Texas ("Express") Round Rock, Texas through a
merger of Express into State Bank, a wholly-owned subsidiary of
Texas United. Under the terms of the merger agreement, aggregate
consideration to be paid by Texas United to the shareholders of
Express will be $9,350,000, consisting of cash in the amount of
$4,675,000 and a number of shares of Texas United common stock
valued at $4,675,000, subject to adjustment as provided in the
merger agreement. The market value of the Texas United common stock
will be based on the average trading price of the Texas United
common stock for the 20 consecutive trading days ending on and
including the tenth trading day preceding the closing date. The
transaction is expected to be accretive to earnings in 2006. MERGER
RATIONALE: * Strategically located in the high growth north
Austin/Williamson County market * Attractive shareholder and
customer base * Significant anticipated earnings improvement both
in expense savings and revenue enhancements * Attractive
alternative to planned de novo branching in Round Rock * High
profile location with excellent business development opportunities.
TRANSACTION SUMMARY: * Total consideration: $9,350,000 *
Price/Book: 2.14x * Price/2006 Estimated Earnings: 18.4x *
Price/Assets: 21% * Deposit Premium: 13% The Express Bank was
chartered in 2003 by the Ryan family and has branches in Round Rock
and Hutto. At June 30, 2005, Express had total assets of $45
million, deposits of $40 million and shareholder's equity of $4.4
million. On a pro forma basis as of June 30, 2005, the merger with
Express, combined with the pending acquisition of Gateway Holding
Company Inc., Dallas, Texas, will result in consolidated total
assets for Texas United of approximately $1.5 billion.
Additionally, the merger will increase Texas United's presence in
the rapidly growing area located north of Austin in Williamson
County. The addition of the Round Rock and Hutto locations of
Express compliments Texas United's established base in this highly
strategic area. Subsequent to the merger, Texas United would have
five locations in the Williamson County marketplace with total
assets of $145 million on a pro forma basis as of June 30, 2005. L.
Don Stricklin, President and CEO of Texas United, commented, "The
Express Bank merger represents a continuation of our strategy to
expand into high-growth suburban markets in major metropolitan
areas of Texas. The ownership of The Express Bank blends well with
our community banking philosophy. We are delighted to have Reid
Ryan join Texas United as an Advisory Director. Our organization
already has a strong relationship with the Ryan family and the The
Round Rock Express baseball club and we look forward to extending
that relationship into the banking environment." Reid Ryan,
director of The Express Bank, added, "We are excited about the
merger with State Bank because it offers our customers more options
for their banking needs but still ensures the community based
banking our customers have grown to appreciate." The acquisition is
subject to customary closing conditions, including regulatory
approval and the approval of the shareholders of Express Bank.
ABOUT TEXAS UNITED Texas United Bancshares, Inc. is a registered
financial holding company listed on the Nasdaq National Market
under the symbol "TXUI". Texas United operates through two wholly
owned subsidiary banks, State Bank and GNB Financial, N.A. and
offers a complete range of banking services through 22 full-service
State Bank banking centers located in the greater central and south
central Texas area and seven full-service GNB Financial banking
centers located in Gainesville, Denton and Ennis, Texas. In
addition, State Bank has four loan production offices and 13
limited service branches located in Houston, San Antonio and Austin
through State Bank Mortgage, an operating division of State Bank.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS This
release, other written materials, and statements management may
make, may contain certain forward-looking statements regarding
Texas United's prospective performance and strategies within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Texas United intends such forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995,
and is including this statement for purposes of said safe harbor
provisions. Forward-looking statements are based on certain
assumptions and describe future plans, strategies, and expectations
of Texas United. Texas United's ability to predict results or the
actual effects of its plans and strategies is inherently uncertain.
Accordingly, actual results may differ materially from anticipated
results. The following factors, among others, could cause the
actual results of the merger to differ materially from the
expectations stated in this release: the ability of the companies
to obtain the required shareholder or regulatory approvals for the
merger; the ability of the companies to consummate the merger; the
ability of Texas United to raise the funds necessary to complete
the merger; the ability to successfully integrate the companies
following the merger; a materially adverse change in the financial
condition of either company; the ability to fully realize the
expected cost savings and revenues or the ability to realize them
on a timely basis; a change in general business and economic
conditions; changes in the interest rate environment, deposit
flows, loan demand, real estate values, and competition; changes in
accounting principles, policies or guidelines; changes in
legislation and regulation; and other economic, competitive,
governmental, regulatory, geopolitical, and technological factors
affecting the companies' operations, pricing, and services. All
written or oral forward-looking statements are expressly qualified
in their entirety by these cautionary statements. Please also read
the additional risks and factors described from time to time in
Texas United's reports and registration statements filed with the
Securities and Exchange Commission. Texas United undertakes no
obligation to update these forward-looking statements to reflect
events or circumstances that occur after the date on which such
statements were made. DATASOURCE: Texas United Bancshares, Inc.
CONTACT: Jeff Wilkinson, Chief Financial Officer of Texas United
Bancshares, Inc., +1-979-968-7230
Copyright
Texas United Bancshares (NASDAQ:TXUI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Texas United Bancshares (NASDAQ:TXUI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024