ABTX - Allegiance Bancshares to merge in all-stock deal with CBTX to expand Texas footprint

Texas-based Allegiance Bancshares (NASDAQ:ABTX) and CBTX (NASDAQ:CBTX) agree to combine in an all-stock merger to create a combined company with an equity market cap of approximately $1.5B. Shares of ABTX gap up 4% out of the gate. Under the terms of the deal, Allegiance (ABTX) shareholders will get 1.4184 shares of CBTX common stock for each share of Allegiance (ABTX) common stock they own. Allegiance (ABTX) shareholders will own approximately 54% and CBTX shareholders will own ~46% of the combined company. "The combined company will unify under new branding to be identified prior to the completion of the merger," said CBTX Chairman, President and CEO Bob Franklin, who will be the CEO of the combined bank. On a pro forma basis, the combined bank targets return on average assets of ~1.3% in 2023, as well as return on average tangible common equity of ~12% and an efficiency ratio of ~52%. The merger

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Allegiance Bancshares to merge in all-stock deal with CBTX to expand Texas footprint