Chicago, IL 3/6/12 (StreetBeat) – Encore Bancshares Inc. (Nasdaq: EBTX) shares surged more than 30 percent in early trading Tuesday after news that it has entered into an agreement to be bought by another Houston bank holding company.The share price reached a 52-week high of $20.38 per share Tuesday morning, up from $14.91 at the March 5 close.
Cadence Bancorp LLC said it has entered into an agreement to buy Encore Bancshares, one of Houston’s three publicly traded banks, for $250 million in an all-cash transaction.
That’s equivalent to 2.4 times tangible book value, or $20.62 per share for Encore’s 12.1 million shares. Encore has assets of $1.6 billion, with $1 billion in loans and $1.1 billion in deposits.
Earlier this year, an analyst predicted that Encore, as well as three other Houston banks, could be takeover targets because of their location and asset values.
Privately held Cadence has $3.9 billion in total assets, $2.3 billion in loans and $3.1 billion in deposits. Its 100 banking offices span across Texas, Florida, Georgia, Alabama, Mississippi and Tennessee.
Encore shareholders will have to vote on the deal before the Cadence acquisition closes. Encore Bancshares operates Encore Bank branches.
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