First Guaranty Bancshares in Hammond, La., has agreed to buy Lone Star Bank in Houston.
The $3.1 billion-asset First Guaranty said in a press release that it will pay $78.7 million in stock for the $151 million-asset Lone Star. The deal priced Lone Star at 150% of its tangible book value.
“First Guaranty Bank’s philosophy and goal is to have a strong presence in the communities we serve and to be a strong contributor to the communities,” Alton Lewis, First Guaranty’s vice chairman, president and CEO, said in the release. “We look forward to spreading this philosophy in the Houston market.”
Ortega Law, Pickering & Cotogno, Bradley Arant Boult Cummings and Phelps Dunbar advised First Guaranty. Performance Trust Capital Partners and Hunton Andrews Kurth advised Lone Star.