With an aim to expand scale, Independent Bank Group IBTX announced its agreement to acquire Houston, TX-based Integrity Bancshares and its subsidiary Integrity Bank SSB in a cash and stock deal. The merger has been approved by the Board of Directors of both the companies. However, approval from the shareholders of Integrity and other regulatory approvals are yet to be received. The deal is expected to be closed by the second quarter of 2018.
Integrity Bancshares, which operates four full service branches in Houston, is the third company to be acquired by Independent Bank in that area. As of Sep 30, 2017, Integrity Bancshares reported assets worth $805 million, equity capital of $84 million and deposits worth $679 million.
Per the agreement, Independent Bank will issue 2.07 million shares of its common stock and pay $31.6 million in cash to the shareholders and option holders of Integrity. However, if the tangible equity of Integrity is less than $84 million at closing, the cash portion of the merger consideration will reduce by that amount. Whereas, any amount above $84 million will be distributed among its shareholders.
David R. Brooks, CEO and Chairman of Independent Group said, "Integrity Bank brings a skilled team of experienced bankers as well as a dedicated group of employees. We are delighted to welcome Integrity Bank's clients, shareholders, and employees to Independent Bank Group."
Shares of Independent Bank have gained 10.9% in the last 12 months, outperforming the industry
's rally of 6.3%.
Currently, the stock carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Republic Bancorp RBCAA
and Summit Financial Group SMMF
, sporting a Zacks #1 Rank (Strong Buy), and First Bancorp FBNC
, carrying a Zacks #2 Rank (Buy). You can see the complete list of today's Zacks #1 Rank stocks here
Republic Bancorp has witnessed an upward earnings estimate revision of 4.7% for 2017, over the last 60 days. Over the past 12 months, its share price has gone up 13%.
Summit Financial has witnessed an upward earnings estimate revision of 3.7% for 2017, over the last 60 days. Its share price has risen 11.4% over the past 12 months.
For First Bancorp, over the last 60 days, the Zacks Consensus Estimate has been revised 9.7% upward for 2017. Its share price has increased 49.1% in a year. Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now. Click here to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Bancorp (FBNC): Free Stock Analysis Report Independent Bank Group, Inc (IBTX): Free Stock Analysis Report Republic Bancorp, Inc. (RBCAA): Free Stock Analysis Report Summit Financial Group, Inc. (SMMF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research