Spirit of Texas to enter San Antonio with Beeville purchase

Spirit of Texas Bancshares in Conroe has agreed to buy First Beeville Financial in Beeville, Texas.

The $1.1 billion-asset Spirit said in a press release Tuesday that it will pay $63.7 million in cash and stock for the $412 million parent of First National Bank of Beeville. The deal, which is expected to close in the second quarter, priced Beeville at 178% of its tangible book value.

The deal will allow Spirit to enter San Antonio.

The transaction is Spirit’s ninth acquisition since 2008 and the second since its initial public offering in May. The company agreed earlier this year to buy the $339 million-asset Comanche National.

Beeville has three branches, three loan production offices, $279 million in loans and $374 million in deposits.

“We’ve been looking for effective ways to expand our footprint into South Texas and this acquisition is a perfect fit for our culture and our future business plans in this region,” Dean Bass, Spirit’s chairman and CEO, said in the release.

The transaction is expected to be 15.4% accretive to Spirit’s 2019 earnings per share. It should take less than four years to earn back any dilution to Spirit’s tangible book value.

Spirit said it plans to cut a quarter of Beeville’s annual noninterest expense.

Brian Schneider, Beeville’s chairman and president, and Kent Fry, the seller’s chief lending officer, will join the Spirit of Texas Bank management team. One Beeville director will join Spirit’s board.

Stephens and Hunton Andrews Kurth advised Spirit. Sheshunoff and Fenimore, Kay, Harrison & Ford advised Beeville.