Southwest Bancorporation of Texas, Inc. Announces Major Initiatives in Dallas; To Merge With Lone Star Bank; Well-Known Banker J
October 27 2003 - 7:00PM
PR Newswire (US)
Southwest Bancorporation of Texas, Inc. Announces Major Initiatives
in Dallas; To Merge With Lone Star Bank; Well-Known Banker Joins
Team DALLAS and HOUSTON, Oct. 27 /PRNewswire-FirstCall/ --
Southwest Bancorporation of Texas, Inc. announced today that it has
taken major steps in its expansion plans through a definitive
agreement to merge with Reunion Bancshares, Inc., parent of Lone
Star Bank in Dallas. Additionally, the Company announced that Terry
Kelley, a veteran Dallas banker, is joining the leadership team as
Chairman of the Dallas/Fort Worth region. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030514/SWBTLOGO ) "By joining
forces, these are two great banks that are making a major
commitment to Metroplex businesses and individuals who want strong,
independent Texas banking," said Paul B. Murphy, Jr., CEO of
Southwest Bank of Texas. "Our solid track records of
customer-focused solutions will meet the financial needs of those
in this region by bringing convenient locations and a leadership
team that is entrenched in this market as well as Southwest's
leading edge technology. We believe we will be offering an approach
to banking that Texans appreciate." He added: "I could not be more
pleased that Terry Kelley and Joe Goyne will be leading our team in
the Metroplex. There is probably not a better known banker in
Dallas than Terry Kelley who served the market as Chairman of
BankOne and was a co-founder of Team Bank. Joe Goyne, who has
driven the growth and success of Lone Star, will join us as
president of the Dallas area." Formed in 1976 as Reunion Bank, Lone
Star has five banking center locations in the prime growth areas of
Dallas, $216 million in assets and more than 50 employees. The
merger will be a cash transaction with $43.5 million paid at
closing and $6.5 million to be deposited in an escrow account to
cover the performance of the loan portfolio and other potential
liabilities over a three-year period. Since a portion of the total
consideration will be deferred, the price as a multiple of book
value will be between 2.53 and 2.91 based on September 30, 2003
financials. The price to earnings range will be between 25.4 to
29.2 times the last 12 months earnings. At the close of the merger,
which is expected to close in the first quarter of 2004, Southwest
Bank of Texas will have approximately 1,800 employees,
approximately $5.8 billion in assets and 49 banking centers in
Texas. The transaction will be subject to shareholder approval.
"Having become the third largest independent bank in Texas in just
13 years, we believe we offer a unique approach to banking," said
Scott McLean, president of Southwest Bank of Texas and formerly
president of Texas Commerce Bank, now JPMorgan Chase, in Dallas and
Houston. "The Metroplex and Houston are similar banking markets
with global, money center banks having large marketshares. That is
comfortable for us because customers can clearly see a difference
in our service, products and how we make decisions." He continued:
"Over the last 12 months, our reception in this region has been
exceptional. Already 40 Dallas/Fort Worth businesses have selected
us for new banking relationships which have resulted in over $100
million in new business loans." Kelley, who will oversee the Bank's
growth in the Metroplex, added: "The fact that Southwest Bank of
Texas has grown so dramatically since its inception in 1990 is a
tribute to their unwavering belief that the customer comes first.
Having worked with customers in the Metroplex for almost 30 years,
Joe and I believe that consumers and businesses are excited about
having a Texas-based bank that is vibrant and innovative." Said
Goyne: "Our type of customer-focused banking fits right in with the
culture and performance of Southwest Bank of Texas. They have big
bank expertise and products that are provided with a relationship
approach to banking and involvement in the community that can't be
beat. These initiatives are truly going to launch a different type
of banking in the Metroplex." Kelley, who has over 30 years of
banking experience in Texas, was a co- founder of Team Bank which
grew to over $5 billion in assets before being purchased by Bank
One in 1993. He most recently was chairman and CEO of Bank One's
southern region which included Texas, Oklahoma and Louisiana. He is
past president of the Salesmanship Club of Dallas and serves as a
director of Texas Health Resources, the Texas Methodist Foundation,
the Baylor Oral Health Foundation and a former active member of the
Dallas Citizens Council. He will remain as vice chairman of the
National Enterprise for Educational Accountability and Just for the
Kids. He is a graduate of Lamar University and the Graduate School
of Banking at Southern Methodist University. Goyne, a banker in the
Dallas area for 28 years, was vice chairman of Comerica Bank-Texas
and was instrumental in the development and growth of Grand
Bancshares. Most recently he has been President and CEO of Lone
Star and its holding company. He is a member of the board and
executive committee of the Metropolitan YMCA, and founded the
Historic Preservation League. He is a graduate of Hendrix College
where he was a trustee for eight years. A conference call to
discuss the merger will be held on Tuesday, Oct. 28, 2003 at 10:30
a.m. CST. The call is available by dialing 1-877-282-2315 and
referencing "Southwest Bank of Texas." To view a presentation on
the merger with Lone Star, please visit http://www.swbanktx.com/ ,
About Us, Investor Relations, Presentations. Southwest
Bancorporation of Texas, Inc., the parent company of Southwest Bank
of Texas N.A. is the largest independent bank holding company
headquartered in Houston, Texas, and the third largest independent
bank in Texas. The Company focuses on commercial lending, treasury
management and investment services for businesses in the southwest,
private financial management and trust services for families and
individuals, and retail and mortgage banking services. The Company,
with $5.66 billion in assets, has 44 full-service branches located
throughout the Houston metropolitan area and a loan production
office in Dallas. Certain of the matters discussed in this press
release may constitute forward-looking statements for the purposes
of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, and as such may involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Southwest
Bancorporation of Texas, Inc. (the "Company") to be materially
different from future results, performance or achievements
expressed or implied by such forward-looking statements. The words
"expect," "anticipated," "intend," "plan," "believe," "seek,"
"estimate," and similar expressions are intended to identify such
forward-looking statements. The Company's actual results may differ
materially from the results anticipated in these forward-looking
statements due to a variety of factors, including, without
limitation: (a) the effects of future economic conditions on the
Company and its customers; (b) governmental monetary and fiscal
policies, as well as legislative and regulatory changes; (c) the
risks of changes in interest rates on the level and composition of
deposits, loan demand, and the values of loan collateral,
securities and interest rate protection agreements, as well as
interest rate risks; (d) the effects of competition from other
commercial banks, thrifts, mortgage banking firms, consumer finance
companies, credit unions, securities brokerage firms, insurance
companies, money market and other mutual funds and other financial
institutions operating in the Company's market area and elsewhere,
including institutions operating locally, regionally, nationally
and internationally, together with such competitors offering
banking products and services by mail, telephone, computer and the
internet; and (e) the failure of assumptions underlying the
establishment of reserves for loan losses and estimations of values
of collateral and various financial assets and liabilities. All
written or oral forward-looking statements are expressly qualified
in their entirety by these cautionary statements.
http://www.newscom.com/cgi-bin/prnh/20030514/SWBTLOGO
http://photoarchive.ap.org/ DATASOURCE: Southwest Bancorporation of
Texas, Inc. CONTACT: Randy Meyer, EVP & CFO, +1-713-235-8832,
or , or Sarah Peterson, SVP Corporate Communications,
+1-713-232-1115, or , both of Southwest Bancorporation of Texas,
Inc.; or Joe Goyne, CEO and President of Lone Star Bank,
+1-214-956-9000 Web site: http://www.swbanktx.com/
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