On August 25, Texas Heritage Bancshares Inc., the parent company of Hondo National Bank, and Medina Community Bancshares Inc., the parent company of Hondo-based 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 board 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 transaction is expected to close on or before December 31, with the merger of the subsidiary banks expected within the following 12 months when the banking systems have been converted and rebranding of the combined banks has been determined.
The holding companies’ deal will be an all-stock transaction with shareholders of Medina Community Bancshares receiving 3.358 shares of stock of Texas Heritage Bancshares 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 serve our customers more efficiently, 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,” says Jim Barden, chairman of the board of Texas Heritage Bancshares.
“The combination will bring economies of scale, enhance services for our customers and provide more options and opportunities for our banking future,” adds Clay Binford, chairman of the board of Medina Community Bancshares.
Piper Sandler & Co. served as financial advisor to Texas Heritage Bancshares and provided a fairness opinion to its board. Stinson LLP served as its legal counsel. Samco Capital Markets Inc. served as the financial advisor of Medina Community Bancshares and provided a fairness opinion to its board. Fenimore Kay Harrison Ford served as its legal counsel.
Established in 1901, Hondo National Bank had approximately $323 million in assets as of August 1. The bank operates five branches in the Texas counties of Medina, Bandera, Uvalde, Real, and Blanco. Established in 1981, Community National Bank had approximately $243 million in assets as of August 1. The bank serves customers in Medina and Atascosa counties through four branches located in Hondo, Castroville, Lytle and LaCoste.
