Arp-based American State Bank announced that it has entered into a definitive agreement to acquire East Texas National Bank.
Under the terms of the agreement, reached on Nov. 13, American State Bank will acquire the common stock of East Texas National Bank for cash. The transaction was approved by the board of directors of American State Bank and East Texas National Bank and its holding company, East Texas National Inc. The acquisition is subject to customary conditions, including approval of bank regulatory authorities.
“We are fortunate to have the opportunity to partner with the team in Palestine,” Brandon Steele, chairman of American State Bank, said Wednesday in a prepared statement. “These bankers have a long history of serving the communities in which they operate in an exemplary manner, and we intend to compliment their traditional service levels with enhanced product offerings.”
American State Bank’s main branch is in Arp. The bank also has locations in Tyler, at 5202 Old Jacksonville Highway and 1116 Troup Highway; as well as one in New Chapel Hill. The bank also plans to open a branch at 917 ESE Loop 323 in January.
As of Sept. 30, American State Bank had total assets of $241 million, while East Texas National Bank, had total assets of $146 million.
Upon completion of the proposed transaction, it is anticipated the combined bank will have assets of about $350 million, and the management team of American State Bank will have more than 200 years of collective banking experience.
Crutcher said American State Bank is a well-run organization and has the same strong heritage as East Texas National Bank.
“This acquisition creates an institution even more capable of meeting the needs of the communities we serve,” East Texas National Bank President Cliff Bomer said. “While the combined banks will form a larger institution, we will retain the ability to make local decisions and respond quickly to our customers.”
Bomer will remain with American State Bank following the acquisition. The transaction is expected to close by the end of the year.