Spirit of Texas Bancshares and Chandler Bancorp to merge
Spirit of Texas Bancshares Inc., the holding company for Spirit of Texas Bank, recently announced that it is acquiring, through a series of mergers, Chandler Bancorp Inc. and its subsidiary, Citizens State Bank. On July 24, Spirit entered into a definitive agreement to acquire Citizens in a cash and stock transaction for total consideration value of approximately $65.6 million based on Spirit’s closing price of $22.10 per share on July 23.
The transaction is Spirit’s 10th acquisition since 2008 and will be the third acquisition since Spirit’s May 2018 initial public offering. As of June 30, Citizens, on a consolidated basis, reported total assets of $349.1 million, total deposits of $265.7 million and total equity capital of $39.0 million.
As a result of the transaction, Spirit will add seven full-service branches to Spirit of Texas Bank’s existing 29 locations. The transaction is expected to close in the fourth quarter of this year.
“This transaction, which is expected to be immediately accretive to earnings per share, represents an exciting strategic and financial opportunity for us to expand our footprint into the East Texas region,” said Chairman and CEO Dean O. Bass. “We believe that Citizens State Bank, a strong community bank with a shared commitment to providing exceptional customer service, will be a great partner to the Spirit franchise. Together, we will be better positioned to take advantage of organic growth and acquisition opportunities that will enable us to better serve our customers and further enhance shareholder value.”
Under the terms of the transaction, Spirit will issue 2.1 million shares of its common stock and pay approximately $19.2 million in cash, subject to certain adjustments, to Kidd Partners, Ltd., the sole shareholder of Chandler Bancorp.
Upon completion of the transaction, David Monk, president and CEO of Citizens State Bank, will join Spirit of Texas Bank management.