The parent company of Baton Rouge-based b1BANK is acquiring a Houston-based tank in a $52.9 million stock deal.
Business First Bancshares Inc. is acquiring Texas Citizens Bancorp. which owns Texas Citizens Bank.
After the deal closes, b1BANK will grow to $4.9 billion in total assets up from $4.4 billion. Texas Citizens, founded in 2006, has six branches in the Houston region and about $516.9 million in total assets.
The move is to broaden the company’s geographic footprint which includes more of the Texas market with goals to become a regional rather than local player.
“We have experienced success diversifying our geographic exposure over the past few years,” said Jude Melville CEO of Business First.
Texas Citizens Bank’s chairman and CEO Duncan Stewart would oversee the Houston region at b1BANK. The Officer of the Comptroller of the Currency lifted a formal agreement with the Pasadena-based bank after it found unsafe and unsound practices related to strategic and capital planning alongside credit risk management in 2019.
Texas Citizens shareholders will get 0.7038 shares of Business First stock for each share of Texas Citizens common stock a total of 2.1 million shares. The deal is expected to close by the end of the first quarter of 2022.
Business First has been on an acquisition spree, last year the company acquired Houma-based Pedestal Bank which had $1.2 billion in total assets.