Dwelling BancShares to Purchase Completely happy Bancshares of Texas in $919M Deal
Dwelling BancShares Inc. of Conway introduced Wednesday a $919 million deal to amass Completely happy Bancshares Inc. of Completely happy, Texas, pushing up the mum or dad firm of Centennial Financial institution’s belongings by greater than a 3rd from $17.6 billion to past $23 billion.
In a information launch, publicly traded Dwelling BancShares (Nasdaq: HOMB) mentioned the deal can be “instantly triple accretive,” with will increase to earnings per share of 5.5% and 9.2% for 2022 and 2023, respectively; guide worth per share of 5.1%; and tangible guide worth per share of 1.5%.
Led by co-founder and Chairman, President and CEO Johnny Allison, Dwelling BancShares mentioned it would proceed to be headquartered in Conway and function as Centennial Financial institution in its present markets. As a part of the deal, the corporate will add J. Pat Hickman, Completely happy Bancshares’ chairman, to its board of administrators.
“We’re thrilled to have discovered such a high quality financial institution to companion with to make this growth a actuality,” Allison mentioned in a information launch. “As robust as HOMB’s mortgage yield is, Completely happy’s is even stronger. Mix that with becoming a member of forces with their founder, J. Pat Hickman, high quality staff and 1,300 loyal particular person shareholders, makes this a really enticing mixture.”
Completely happy Bancshares CEO Mikel Williamson will be part of the Centennial Financial institution government workforce, with different Completely happy State Financial institution executives sustaining management roles in Texas, the corporate mentioned. Completely happy State branches in Texas will likely be rebranded as “Completely happy State Financial institution, a Division of Centennial Financial institution,” after the merger is full.
The deal is predicted to shut within the first quarter of 2022.
Each corporations’ boards unanimously permitted the merger settlement. Per the deal, Completely happy Bancshares shareholders will obtain 2.17 shares of Dwelling BancShares inventory for every share of Completely happy Bancshares they personal.
Completely happy State Financial institution, based in 1908, is chartered in Completely happy, a city of about 700 due south of Amarillo https://nygoodhealth.com/product/caverta/ within the Panhandle of west Texas. Completely happy State Financial institution has been on an in-state acquisition spree, rising its belongings from $3.8 billion on the finish of 2019 to $6.26 billion as of June 30 by buying First State Financial institution of Mobeetie and, coincidentally, Centennial Financial institution of Lubbock in 2020 and First Financial institution of Muleshoe and First Nationwide Financial institution of Tahoka earlier this 12 months.
With the acquisitions has come elevated profitability. Completely happy State posted earnings of $47.6 million in 2019 and $60.1 million in 2020, and has already earned $53.6 million within the first six months of 2021.
Completely happy State had $810 million in fairness capital as of June 30.
Completely happy State employs virtually 900 individuals in 64 places of work, all of them in Texas and most within the Panhandle. Different markets that Centennial — nonetheless utilizing the Completely happy State Financial institution branding — will enter embody Dallas, Austin and suburban San Antonio.
Centennial presently employs 2,000 individuals in 176 places of work — 81 in Arkansas, 88 in Florida, six in Alabama and one in New York. It had $2.82 billion in fairness capital as of June 30, and it has posted earnings of $175.5 million within the first two quarters of 2021 after incomes $238.9 million in 2020.
Primarily based on a volume-weighted common closing worth per share of Dwelling BancShares inventory of $21.77 throughout the 20-trading-day interval ending on Sept. 13, the per share consideration worth is $47.24, placing the combination transaction worth at about $919 million.
Dwelling BancShares mentioned Piper Sandler Cos. of Minneapolis was its monetary advisor, and Mitchell Williams Selig Gates & Woodyard of Little Rock was its authorized advisor. Stephens Inc. of Little Rock was the monetary advisor to Completely happy Bancshares.
An earlier model of this story incorrectly said Completely happy State Financial institution’s 2020 earnings.