MOUNT PLEASANT, Texas, June 05, 2018 (GLOBE NEWSWIRE) -- Guaranty Bancshares, Inc. (NASDAQ:GNTY), the holding company for Guaranty Bank & Trust, N.A., announced today the completion of its acquisition of Westbound Bank. Effective June 1, 2018, Westbound merged with and into Guaranty Bank & Trust, with Guaranty Bank & Trust surviving the merger.
As Guaranty 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, Texas.
Ty Abston, Chairman of the Board and Chief Executive Officer of Guaranty, said, “The completion of our first acquisition into the dynamic Houston market is a key part our expansion strategy implemented several years ago. Westbound provides a talented team and an immediate market presence that would not have been possible through de novo expansion. Troy England, Westbound’s CEO, has been named Houston Area Chairman for Guaranty and will lead our Houston MSA expansion efforts. Troy brings the experience and leadership necessary to grow our franchise in this region, and we are excited to have him as a part of our management team.”
England, President and Chief Executive Officer of Westbound, stated, “Becoming a part of a leading Texas community bank like Guaranty that emphasizes local decision-making allows us to better serve our customers through expanded product offerings, increased loan limits, the latest technology, and a nationwide ATM network. Guaranty’s community banking model and 32 locations throughout the state will enhance our customer’s banking experience. I am excited about joining the Guaranty team and look forward to the opportunities it provides our shareholders, staff, and customers.”
Under the terms of the agreement, Guaranty Bancshares, Inc. issued 900,000 shares of its common stock and paid cash in the aggregate amount of $4.67 million to the shareholders and option holders of Westbound. In addition, $1.75 million of cash merger consideration is being held in escrow by Guaranty Bancshares and may be distributed to the former holders of capital stock of Westbound at certain specified dates during the three-year period following closing in accordance with the terms and conditions of the merger agreement. Westbound was also permitted to pay a pre-closing cash distribution to its shareholders and option holders in an amount equal to their tangible equity in excess of $16.5 million, which was $5.55 million.
As of March 31, 2018, Westbound reported total assets of $229.7 million, total loans of $163.8 million and total deposits of $191.0 million. With the closing of this transaction, Guaranty’s total assets are over $2.2 billion, with 32 locations operating in 24 Texas markets.
Guaranty was advised in this transaction by Sandler O’Neill + Partners, LP as financial advisor and Fenimore, Kay, Harrison & Ford, LLP as legal counsel. Westbound was advised by The Bank Advisory Group, LLC as financial advisor and Hunton Andrews Kurth 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 March 31, 2018, Guaranty had total assets of $2.0 billion, total loans of $1.4 billion and total deposits of $1.7 billion. Visit www.gnty.com for more information.
