Pioneer Bank and First Community Bank Announce Merger
- M&A Deals
- 14.08.2015 01:00 am
Pioneer Bancshares, Inc., the holding company for Pioneer Bank, SSB, and FC Holdings, Inc., the holding company for First Community Bank, N.A., jointly announced today the signing of a definitive merger agreement that will result in a combined community banking franchise with total assets of $1.1 billionand 22 branches across Texas. The combined company will operate under the Pioneer Bank brand. Jeffrey A. Wilkinson, Pioneer Bank's President and Chief Executive Officer, will lead the new institution as CEO. Ron Coben, First Community's Chief Operating Officer, will remain as the COO with executives from both banks filling the remaining executive management positions. Pending the receipt of regulatory and shareholder approvals, the merger is expected to close late in 2015 or early 2016.
With five branches and $409 million in assets today, Pioneer brings a strong commercial banking focus to the combined bank. "At a time when some consider community banking a lost art, we believe this merger with First Community Bank will create a unique banking franchise operating solely in Texas," said Wilkinson. "We will have the scale required to deliver excellence and the deepTexas roots needed to better understand our communities."
While First Community Bank is equally active in commercial lending, the bank has also established an expertise in retail banking that will continue in the combined bank. "Our history in our communities dates back to 1892. We have grown a profitable bank with $622 million in assets operating 17 branch locations in Houston, Dallas, San Antonio, and beyond," said Doug Harker, President and CEO of First Community Bank. "The two banks are very complementary. We're pleased that no branches will close, no lenders overlap, and no local markets will experience change." Mr. Harker will assist in the transition of the combined companies and then work for family-related interests.
The combined bank plans to maintain headquarters in central Texas while retaining branch, administrative and support staff in each geographic market. Based on June 30, 2015 financials, the combined bank will have total loans of $779 million, $919 million in deposits, and will service more than 40,000 deposit and loan accounts through 22 branches across Texas.
Vining Sparks served as financial advisor to Pioneer Bancshares. Fenimore, Kay, Harrison & Ford, LLP is serving as legal counsel to Pioneer Bancshares. FC Holdings, Inc. was advised in this transaction by Sandler O'Neill & Partners, L.P., as financial advisor. Beiging, Shapiro & Barber, LLP is serving as legal counsel to FC Holdings, Inc.