Hondo National and Community National announce merger
Texas Heritage Bancshares Inc., parent company of Hondo National Bank, and Medina Community Bancshares Inc., parent company of Community National Bank, jointly announced the signing of a definitive agreement to combine the two holding companies into Texas Heritage Bancshares.
The merger agreement was unanimously approved by the boards of directors of both bank holding companies. As a result of the merger, Texas Heritage Bancshares will be reconstituted with new organizational and governance documents to reflect the combination.
The holding companies’ transaction is expected to close on or before Dec. 31. The planned merger of the subsidiary banks is expected within the following 12 months when the banking systems have been converted, rebranding of the combined banks has been determined and the banks can assure a smooth, seamless and customer-friendly transition to a single banking operation.
The deal will be an all-stock transaction with shareholders of Medina Community receiving 3.358 shares of stock of Texas Heritage for each share of stock they own. When the merger is completed, the companies will bring a total asset size in excess of $500 million and consist of nine branch locations in six counties north and west of San Antonio.
“We are excited about this partnership, which will enable us to more efficiently serve our customers, remain vital in an increasingly competitive financial marketplace and, very importantly, remain a locally owned and managed banking presence in the communities where we are located,” said Jim Barden, chairmen of the board of Texas Heritage.