Baton Rouge, La.-based Business First Bancshares Inc., has signed a definitive agreement to acquire Pasadena, Texas-based Texas Citizens Bancorp, Inc., in a nearly $53 million deal.
The $4.4 billion Business First is the holding company for b1BANK. Texas Citizens is the owner of Texas Citizens Bank NA. The transaction is expected to close in the first quarter of 2022. Once the transaction is complete, the combined organization will be a $4.9 billion institution.
As of Sept. 30, Business First had $3.1 billion in loans, $3.8 billion in deposits and $430.2 million in total shareholder equity. Texas Citizens had $452 million in total deposits and $34.6 million in common shareholders’ equity.
Texas Citizens’ Chair and CEO Duncan Stewart will join b1BANK as chair for the Houston region. President Mike Cornett will also join the b1BANK team as vice chair for Houston. Don Hingle, the current b1BANK executive vice president and director of market expansion, will relocate to Houston as regional president.
Texas Citizens shareholders are expected to receive 0.7038 of a share of Business First stock for each share of Texas Citizens common stock, with cash paid in lieu of fractional shares, or approximately 2.1 million shares of Business First’s common stock. Following the transaction, former Texas Citizens shareholders will own 9.7 percent of the combined company.
Stephens Inc. acted as financial adviser, and Fenimore Kay Harrison LLP served as legal adviser to Business First. Piper Sandler Cos. acted as financial adviser, and Bracewell LLP served as legal adviser to Texas Citizens.