Houston & Beaumont, Texas (PRWEB) March 19, 2014
CommunityBank of Texas announced today that its holding company, CBFH, Inc., has entered into a definitive agreement to acquire MC Bancshares, Inc., the holding company of Memorial City Bank, in an all cash transaction. The combined assets of the two independent and privately owned banks of roughly $2.8 billion make the combined company one of the largest privately held banks in Texas. With this merger, the bank will have a substantial majority of its loans and deposits in the Houston marketplace.
“I am very pleased to announce our acquisition of Memorial City,” said Bob Franklin, CommunityBank’s chief executive officer. “Bringing the high quality team from Memorial under CommunityBank’s umbrella increases our presence in the Houston area and positions us to continue our rapid growth. I have known the bankers at Memorial City for many years and am proud to welcome them to our organization. Adding experienced Houston bankers furthers our efforts to expand within the market as we leverage their relationships and expertise.”
Established in 2008 in the West Houston area, Memorial City has grown to almost $300 million in total assets without ever having a non-performing asset. Since becoming profitable in its second year, Memorial City has shown strong earnings growth.
Allen Gage, Memorial City’s chairman and chief executive officer, will join CommunityBank’s executive leadership team.
“We are proud of the franchise our employees have built in such a short time and are pleased to be joining CommunityBank. Memorial City and CommunityBank’s partnership will provide our customers the benefits of a larger platform and additional product offerings while still receiving the high level of individual care they enjoyed at Memorial City.”
This acquisition marks CommunityBank’s second transaction in as many years in the Houston market.
“Further expansion in the growing Houston market is the key as we position ourselves as the pre-eminent independent bank in the state of Texas,” said Pat Parsons, CommunityBank’s chairman. “Memorial City’s strong growth and pristine credit are a perfect fit for our Houston growth strategy.”
As of December 31, 2013 Memorial City had no non-performing assets.
The proposed transaction has been approved by the boards of each company. Pending MC Bancshares shareholder approval and customary regulatory approvals, the acquisition of Memorial City Bank by CommunityBank of Texas is expected to close on or about June 30, 2014.
CBFH, Inc. was advised by Macquarie Capital and received legal advice from Bracewell & Giuliani LLP. MC Bancshares, Inc. was advised by Sterne, Agee & Leach, Inc. and received legal advice from Thompson & Knight LLP.