First Financial Bankshares, Inc. (NASDAQ: FFIN) recently announced that it has entered into a definitive agreement to acquire Commercial Bancshares, Inc. and its wholly owned subsidiary, Commercial State Bank, Kingwood. Subject to the terms and conditions of the definitive agreement, First Financial Bankshares anticipates that the acquisition consideration will consist solely of First Financial Bankshares common stock totaling $59.4 million. In addition, prior to closing, Commercial Bancshares, Inc. expects to pay a special dividend of approximately $15.6 million to its shareholders, which may be increased or decreased in accordance with the terms of the definitive agreement. Pending regulatory and shareholder approval, the acquisition is expected to be finalized in the first quarter of 2018.
The acquisition of Commercial State Bank expands First Financial Bankshares' growing Texas footprint into the cities of Kingwood, Fulshear, El Campo and Palacios, all located just outside the Houston metroplex.
"We are very excited about this opportunity to expand our footprint around Houston," said F. Scott Dueser, chairman, president and CEO of First Financial Bankshares. "Commercial State Bank is a well-managed bank that has experienced solid growth in assets and earnings and we believe it has excellent growth potential. We are most impressed with their management and board, who share our same values, philosophies and commitment to outstanding customer service."
"This is a very strategic acquisition for our company to strengthen our footprint around Houston, where several large companies are moving. Once this acquisition is completed, we will have banking operations throughout Texas with 73 locations that span from Hereford in the Panhandle to Orange in southeast Texas. We welcome this opportunity to bring our expanded banking and wealth management services to this new market by adding Commercial State Bank to the financially strong and growing First Financial Bankshares family," Dueser added.
As of Sept. 30 Commercial State Bank had total assets of $366.8 million, total loans of $263.8 million and total deposits of $322.1 million.
"Joining with First Financial Bankshares will mean new and expanded products and services for our customers and greater opportunities for our employees, while allowing us to maintain our focus on serving our communities and making banking decisions on a local basis," said Harry J. Brooks, chairman and CEO of Commercial Bancshares, Inc. "Our bank will continue to have the same friendly people and the same commitment to being involved in the community, but with the added resources of a highly respected, larger banking organization. We will soon be able to offer an expanded array of depository products, including state-of-the-art mobile banking and treasury management services, a larger lending capacity, and trust services."