On November 8, Houston-based Allegiance Bancshares Inc., the holding company of Allegiance Bank, and CBTX Inc., the parent company of CommunityBank of Texas NA, jointly announced that they have entered into a definitive agreement pursuant to which the companies will combine in an all-stock merger of equals to create a combined company with an equity market capitalization of approximately $1.5 billion and the 17th largest deposit market share in Texas. The merger is expected to close early in the second quarter of 2022.
“This transaction is a true merger of equals, combining the best of our highly respected community banks, which better positions us to serve our customers and drive enhanced financial performance,” says Steve Retzloff, Allegiance Bancshares CEO. “Our companies complement each other beautifully and the combined company will be a formidable competitor across our markets. I have long admired Bob’s leadership and the high quality community bank franchise that CBTX has built.”
“Bringing two of the Houston region’s best community banks together is a great thing for our communities,” says Bob Franklin, CBTX chairman, CEO and president. “Allegiance is a trusted, local bank and there is no better team with which to unite to work together to preserve the tradition of community banking, while meeting the diverse needs of the customers that we serve. We are committed to the idea that the Houston region needs a financial institution with significant scale that operates with the culture of a community bank and local decision-making led by banking professionals with deep experience. The combined company will unify under new branding to be identified prior to the completion of the merger. This will be important as we take the best of both to build our future.”
Executive leadership for the new bank will include:
- Steve Retzloff, CEO of Allegiance, will be the executive chairman of the combined company;
- Bob Franklin, chairman, CEO and president of CBTX, will be the CEO of the combined company;
- Ray Vitulli, president of Allegiance, will be the CEO of the combined bank;
- Paul Egge, chief financial officer of Allegiance, will be the CFO of the combined company;
- Joe West, chief credit officer of CBTX, will be the CCO of the combined bank;
- The board of directors of the combined company will initially be comprised of 14 directors—seven from Allegiance and seven from CBTX; and
- Retzloff and Franklin will both be named directors of the combined company.
Established in 2007, Allegiance Bank operates 27 banking locations in the Houston region. Established in 1926, CommunityBank of Texas NA has 35 offices in Houston, Dallas, Beaumont and surrounding communities.