Banking: More minnows "merge" in US banking sector consolidation
Increasing financial and regulatory pressures continue to dog the USA's small banking sector and consolidation is picking up speed amongst the smallest banks. First Financial Bankshares, Inc is to buy Sam Houston Financial Corporation, the parent company of The First State Bank in Huntsville, Texas. The price? Just USD22.2 million in cash and shares.
The absorption of First State gives First Financial access to the town of Huntsville, Texas. The town profile underlines the dependence of the US banking sector on small local banks: it has only 38,000 residents
"We are very impressed with the Huntsville and Walker County area because of the community and the solid economic base," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares. "The First State Bank in Huntsville has had consistent growth through the years and is rated as one of the high-performing banks in the state."
First Financial has been buying up community banks - although this is its first purchase since 2005.
"This merger is consistent with our Company's growth strategy of acquiring well-run community banks in Texas, one of the largest and fastest-growing states in the nation," Dueser said. "When this acquisition is complete, we will operate a total of 11 separately chartered community banks with 52 locations in Texas that span from Hereford in the Panhandle to Huntsville in Southeast Texas."
As of 31 August, 2010, First State Bank had total assets of USD164.2 million and total deposits of USD147.1 million.
First Financial Bankshares' bank subsidiaries are First Financial Bank, N.A., Abilene, Albany, Clyde, Moran and Odessa; First Financial Bank, N.A., Eastland, Ranger and Rising Star; First Financial Bank, N.A., Cleburne, Burleson, Alvarado and Midlothian; First Financial Bank, Hereford; First Financial Bank, N.A., Mineral Wells; First Financial Bank, N.A., San Angelo; First Financial Bank, N.A., Southlake, Bridgeport, Boyd, Decatur, Keller and Trophy Club; First Financial Bank, N.A., Stephenville, Granbury, Glen Rose and Acton; First Financial Bank, N.A., Sweetwater, Roby, Trent and Merkel; and First Financial Bank, N.A., Weatherford, Willow Park, Aledo, Brock and Fort Worth. The Company also operates First Financial Trust & Asset Management Company, N.A., with six locations and First Technology Services, Inc., a technology operating company.
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