City State Bank, Commercial State Bank to merge
City State Bancshares Inc. and its wholly owned subsidiary, City State Bank, has signed an agreement to merge with Commercial Bancshares, Inc. and its wholly owned operating subsidiary, Commercial State Bank of El Campo, according to a City State news release.
Joining two strong franchises means new opportunities, Ken Johnson, City State's president and CEO, said in the release.
"We believe the combined organization will be able to provide a better return for shareholders, as well as a broader depth of products and solutions for our customer needs," he said.
Johnson will remain on as an executive officer and director of the combined organization.
City State customers will continue to receive the same level of personalized customer service they are accustomed to and can take advantage of additional Commercial State products, Johnny Brooks, Commercial State's chairman and CEO, said in the release.
Both companies' boards approved the merger, and the deal is expected to close during 2013's third quarter. The transaction is subject to certain conditions, such as approval by City State shareholders and customary regulatory approvals.
City State operates one bank in Palacios and, as of Dec. 31, reported total assets of $58.4 million, total loans of $21.9 million and total deposits of $52 million.
Commercial State operates banks in El Campo, Fulshear and Humble and reported total assets of $211.3 million, total loans of $124.1 million and total deposits of $184.7 million.