MOUNT PLEASANT, Texas, Jan. 29, 2018 (GLOBE NEWSWIRE) — Guaranty Bancshares, Inc. (NASDAQ:GNTY), the holding company for Guaranty Bank & Trust, N.A., announced today the execution of a definitive agreement under which Guaranty will acquire Houston-area Westbound Bank. Pursuant to the agreement, Westbound will be merged with and into Guaranty Bank & Trust.
As Guaranty further expands its Texas banking franchise into the Houston metropolitan region, it will continue to operate Westbound’s four locations located at 655 W. Grand Parkway South, Katy, 5231 Bellaire Boulevard, Bellaire, 15001 FM 529, Houston, and 244 South Loop 336 W., Conroe. As of December 31, 2017, Westbound Bank reported total assets of $228.0 million, total loans of $160.3 million and total deposits of $188.5 million.
Ty Abston, Chairman of the Board and Chief Executive Officer of Guaranty, said, “We are pleased to announce our first acquisition into the dynamic Houston market. Our expansion into this growing region has been a part of our strategy for several years, and Westbound brings to us a proven team and excellent initial footprint to make that happen. Troy England, Westbound’s CEO, will become Houston Area Chairman for Guaranty and lead our Houston MSA expansion efforts. He’s a proven leader in the Houston market and we are excited to have Troy join our management team.”
Troy England, President and Chief Executive Officer of Westbound stated, “Joining an established and growing Texas community bank organization like Guaranty is an opportunity to better serve our customers and market, while continuing our focus on community banking and local decision making. Guaranty offers an expanded array of products and services, as well as the convenience of a state-wide banking network. Guaranty’s community banking model and asset size will truly enhance our customer’s banking experience. I am looking forward to joining Guaranty in my new leadership role.”
Under the terms of the agreement, Guaranty Bancshares, Inc., will issue 900,000 shares of its common stock and pay cash in the aggregate amount of $6.4 million to the shareholders and option holders of Westbound, subject to certain potential adjustments. If Westbound’s tangible equity is greater than $16.5 million at closing, Westbound will be permitted to pay a pre-closing cash distribution to its shareholders and option holders in an amount equal to any excess.
The boards of directors of both companies have approved the agreement and proposed transaction, which is expected to close in the second quarter of 2018, subject to certain conditions, including customary regulatory approvals and approval by the Westbound shareholders. Upon the closing of this transaction, Guaranty’s total assets will be over $2.2 billion, while operating 32 locations in 24 Texas markets.
Guaranty Bancshares, Inc. was advised in this transaction by Sandler O’Neill + Partners, LP as financial advisor and Fenimore, Kay, Harrison & Ford, LLP as legal counsel. Westbound Bank was advised by The Bank Advisory Group, LLC as financial advisor and Hunton & Williams, LLP as legal counsel
About Guaranty Bancshares
Guaranty Bancshares, Inc. is a bank holding company that conducts commercial banking activities through its wholly-owned subsidiary, Guaranty Bank & Trust, N.A. One of the oldest regional community banks in Texas, Guaranty Bank & Trust provides its customers with a full array of relationship-driven commercial and consumer banking products and services, as well as mortgage, trust, and wealth management products and services. Guaranty Bank & Trust has 28 banking locations across 20 Texas communities located within the East Texas, Dallas/Fort Worth and Central Texas regions of the state. As of December 31, 2017, Guaranty had total assets of $2.0 billion, total loans of $1.4 billion and total deposits of $1.7 billion.