Surety Capital Corporation Acquires First Midlothian Corporation and Plans to Merge with Its Subsidiary

Strategic Insights -

Hurst, Texas-based Surety Capital Corporation has entered into a contract to acquire First Midlothian Corporation (FMC), a bank holding company located in Midlothian, Texas. The acquisition is part of a larger strategy to expand Surety Capital's presence in the north Texas area. Upon completion of the merger, FMC's sole subsidiary, First National Bank, will be merged with and into Surety Capital's subsidiary, Surety Bank, National Association.

The acquisition is contingent upon regulatory approval, due diligence review, and shareholder approval from both FMC and Surety Bank. The transaction is expected to close in the first quarter of 1996. The purchase price for FMC is based on a multiple of 150% of the book value of First National at the date of closing. The current shareholders of FMC will receive cash in the transaction. The acquisition is expected to result in a significant increase in Surety Bank's asset base, with a projected 70% increase after the merger of Bank One's Waxahachie branch.

Key Takeaways:

  • Surety Capital Corporation acquires First Midlothian Corporation, a bank holding company in Midlothian, Texas.
  • The acquisition involves merging FMC's subsidiary, First National Bank, with Surety Capital's subsidiary, Surety Bank, National Association.
  • The purchase price for FMC is 150% of the book value of First National at the date of closing.
  • The current shareholders of FMC will receive cash in the transaction.
  • The acquisition is contingent upon regulatory approval, due diligence review, and shareholder approval from both FMC and Surety Bank.
  • The transaction is expected to close in the first quarter of 1996.
  • The acquisition is expected to result in a 70% increase in Surety Bank's asset base post-merger of Bank One's Waxahachie branch.
  • As of June 30, 1995, First National had total assets of $53,287,000, total deposits of $48,538,000, and total equity of $4,156,000.
  • As of the same date, Surety Bank had total assets of $103,602,945, total deposits of $92,785,677, and total equity of $9,942,594.

Statistics:

  • First National Bank's total assets: $53,287,000 (as of June 30, 1995)
  • First National Bank's total deposits: $48,538,000 (as of June 30, 1995)
  • First National Bank's total equity: $4,156,000 (as of June 30, 1995)
  • Surety Bank's total assets: $103,602,945 (as of June 30, 1995)
  • Surety Bank's total deposits: $92,785,677 (as of June 30, 1995)
  • Surety Bank's total equity: $9,942,594 (as of June 30, 1995)
  • Projected increase in Surety Bank's asset base post-acquisition: 70%

Sources:

  • PR Newswire, September 26, 1995, "Surety Capital Corporation Announces Acquisition of First Midlothian Corporation"
  • CO: Surety Capital Corporation; First Midlothian Corporation
  • ST: Texas
  • IN: FIN SU: TNM DC -- NY022 -- 2555 09/26/95 09:52 EDT