Texas-based financial holding company First Financial Bankshares (FFIN) has inked a definitive agreement to acquire Orange Savings Bank, in a cash and stock deal valued at nearly $56m.
The transaction is likely to complete during the second quarter of current fiscal, subject to regulatory and shareholder approvals, the bank said.
The acquisition will boost FFIN’s business network in the cities of Orange, Port Arthur, Vidor, Mauriceville and Newton, Texas.
Further, it will also enable the buyer to offer a number of new banking products including depository products, instant issue custom debit cards, a larger lending capacity and trust services.
Commenting on the acquisition, First Financial Bankshares chairman, president and CEO F Scott Dueser said that the bank has witnessed solid growth in assets and earnings and has 40% deposit market share in the home market of Orange County.
"Once this acquisition is completed, we will have banking operations in 12 regions of Texas with 61 locations that span from Hereford in the Panhandle to Orange in southeast Texas", Dueser added.
Orange Savings Bank had total assets of $442.83m, total loans of $295.86m and total deposits of $381.12m, as of 31 December 2012.
First Financial manages 11 banking regions with 55 locations in Texas including Abilene, Acton, Albany, Aledo, Alvarado, Boyd, Bridgeport, Brock, Burleson, Cisco, Cleburne, Clyde, Crowley, Decatur, Eastland and Fort Worth, among others.