Dallas-based Texas Brand Bank and Kemp, Texas-based Harmony Bank NA, a subsidiary of FNBK Holdings Inc., have agreed to merge, the Dallas Business Journal reported Sept. 9, citing a news release.
The transaction is expected to close in the first quarter of 2023. Financial terms of the deal were not disclosed in the report.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southwest region between Sept. 8, 2021, and Sept. 8, 2022, averaged 165.67% of book and 176.30% of tangible book and had a median of 14.14x last-12-months earnings, on an aggregate basis.
Operating as a state-chartered bank under the Harmony Bank name, the combined entity is expected to have more than $700 million in assets, with 11 branch locations in Dallas, Ellis, Henderson, Kaufman and Navarro counties in Texas, according to the report.
As of June 30, Texas Brand Bank, a subsidiary of Texas Brand Bancshares Inc., had nearly $330 million in total assets, while Harmony Bank had about $136 million in total assets, according to S&P Global Market Intelligence data.
With the completion of the merger, FNBK Holdings will enter Dallas County, Texas, with five branches to be ranked 44th with a 0.1% share of approximately $297.69 billion in total market deposits, according to S&P Global Market Intelligence data.
Harmony Bank closed its acquisition of Rice, Texas-based First State Bank, increasing its total assets to over $350 million. The combined entity is operating under the name Harmony Bank, effective July 1.
William Lowe, president and CEO of Texas Brand Bank, will serve in the same role for the combined bank.
Lowe, Texas Brand Bank Chairman Edward Tomlinson II and two other current directors of the bank will become members of the combined bank's board.
Fenimore Kay Harrison advised Harmony Bank, while Bradley Arant Boult Cummings LLP and Commerce Street Capital reportedly advised Texas Brand Bank on the transaction.
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