Third Coast Bancshares in Houston has agreed to buy Great Plains Bancshares in Oklahoma City.
The $7 billion-asset Third Coast said in a press release that it will pay $239.6 million in stock for the $1.9 billion-asset parent of Great Plains National Bank. The deal, which is expected to close in the first quarter, priced Great Plains at 156% of its tangible book value.
Great Plains has 23 branches, $1.7 billion in loans and $1.7 billion in deposits.
“We are creating a stronger organization with greater scale, expanded capabilities, and increased capacity to support our customers,” Bart Caraway, Third Coast’s founder, chairman, president, and CEO, said in the release. “This combination will strengthen our ability to serve businesses and communities across our markets while creating long-term value for all stakeholders.”
Great Plains will retain its brand and operate as a division of Third Coast Bank. Two Great Plains directors will join Third Coast’s board, and Mark Russell, Great Plains’ CEO, has accepted a leadership role at Third Coast after the deal closes.
The deal is expected to be 14% accretive to Third Coast’s 2028 earnings per share. It should take less than three years for Third Coast to earn back an estimated 5% dilution to its tangible book value.
Third Coast plans to cut a fifth of Great Plains’ annual noninterest expenses, or $17.1 million. Third Coast expects to incur $21 million of after-tax merger-related expenses.
Keefe, Bruyette & Woods and Norton Rose Fulbright US advised Third Coast. Great Plains was advised Stephens and Fenimore Kay Harrison LLP.