Betty Dillard
bdillard@bizpress.net
Independent Bank Group Inc., the holding company for Independent Bank, said July 19 it will acquire Collin Bank.
The acquisition will be IBG’s first since its initial public offering on April 8 that raised $87 million to support continued growth through strategic acquisitions. Collin Bank, a full-service commercial bank with one office located at 2701 Dallas Parkway in Plano, had total assets of $204.1 million, total deposits of $161.9 million, and total equity capital of $25.8 million at March 31, 2013. Headquartered in McKinney, Independent Bank Group operates 29 banking offices in 26 communities in the Dallas-Fort Worth metropolitan area and the greater Austin area. As of March 31, 2013, IBG had total assets of $1.764 billion, total loans of $1.422 billion and total deposits of $1.415 billion. Independent Bank Group trades on the Nasdaq under the symbol “IBTX.”
David R. Brooks, chairman and CEO of Independent Bank Group, said the company will consolidate its current Plano office and lending team with the Collin Bank location. “Acquisitions within our existing markets are a component of our growth strategy,” Brooks said. “The acquisition of Collin Bank adds to our presence in Collin County, one of the most affluent counties in Texas. Collin Bank has a proven record of loan growth in this marketplace with a good deposit base. We are excited about this opportunity for our company and our shareholders, customers and employees. Collin Bank customers can expect to continue to receive the same level of service that they are accustomed to at Collin Bank, with the added advantage of the Independent Bank Group resources.”
As per the terms of the definitive agreement, Collin Bank shareholders will receive approximately $10 per share for each outstanding share of Collin Bank common stock. Approximately 65 percent of the consideration is payable in cash and 35 percent is payable in shares of Independent Bank Group common stock, subject to a maximum issuance of 300,000 Independent Bank Group shares and other related adjustments, with the exchange ratio set three days prior to the closing by using the average share price of IBG common stock over a 20-day trading period. Based on the number of shares of Collin Bank stock currently outstanding, the amount of total consideration to be paid by Independent Bank Group is currently valued at approximately $29.1 million.
The merger has been approved by the boards of directors of both companies and is expected to close during the fourth quarter of 2013, with operational integration anticipated to begin during the first quarter of 2014. Independent Bank Group was advised in this transaction by Sandler + O’Neill Partners LP as financial adviser and Haynie Rake Repass & Lowry PC as legal counsel. Collin Bank was advised by Commerce Street Capital LLC as financial adviser and Patton Boggs LLP as legal counsel.