GALVESTON, TEXAS – Moody National Bank (“Moody Bank” or the “Bank”), today announced that the Bank has entered into a Branch Purchase and Assumption Agreement to purchase the Clear Lake, Texas branch (the “Branch”) of Spirit of Texas Bank, SSB (“Spirit”).
Under the terms of the Branch Purchase and Assumption Agreement, Moody Bank will assume certain deposit liabilities and acquire certain assets, including cash, personal property and other assets, associated with the Branch. Subject to the customary regulatory approval, the transaction is expected to close in the fourth quarter of 2020. As of June 30, 2020, the deposit balances at the Branch (excluding certain deposits not subject to the transaction) were approximately $26 million.
Victor Pierson, Chairman, President and Chief Executive Officer of Moody Bank, stated, “We are excited about the opportunity to expand our footprint in the Clear Lake / NASA area. We also look forward to the Spirit bankers at the branch joining our team, as they continue to provide the excellent products and customer service to the Clear Lake community. We have the highest respect for Dean Bass and his team at Spirit and appreciate the opportunity to work with them on this transaction.”
Dean O. Bass, Spirit’s Chairman and Chief Executive Officer, stated, “We are pleased to announce that we have entered into an agreement to sell our Clear Lake banking office to Moody Bank, as we seek to optimize our branch footprint in furtherance of our continued effort to diligently focus on reducing expenses. Moody Bank will obtain a book of business that they can successfully build on in the Moody tradition.”
About Moody Bank
Founded in 1907, Moody Bank is the one of the largest community banks in terms of market share in the Houston area with more than $1 billion in assets. Moody Bank offers a wide range of commercial, consumer and treasury management products and services and has one of the oldest and largest trust departments in the State of Texas. Currently, Moody Bank has 15 locations throughout Southeast and Central Texas, with banking centers in Galveston, Brazoria, Comal, Fort Bend, Harris and Travis Counties.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended. Any statements about our expectations, beliefs, plans, predictions, protections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are typically, but not exclusively, identified by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will, “should,” “seeks,” “likely,” “intends” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include, among others: (i) changes in general business, industry or economic conditions, or competition; (ii) the impact of the COVID-19 pandemic on the Bank’s business, including the impact of actions taken by governmental and regulatory authorities in response to such pandemic, such as the Coronavirus Aid, Relief, and Economic Security Act and the programs established thereunder and the Bank’s participation in such programs, (iii) changes in any applicable law, rule, regulation, policy, guideline, or practice governing or affecting bank holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (iv) adverse changes or conditions in capital and financial markets; (v) changes in interest rates; (vi) the possibility that any of the anticipated benefits of the proposed transaction will not be realized or will not be realized within the expected time period; (vii) the risk that integration of the operations of the Branch will be materially delayed or will be more difficult than expected; (viii) the effect of the announcement of the proposed transaction on customer relationships and operating results; (ix) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (x) higher-than-expected costs or other difficulties related to integration of combined or merged businesses; (xi) the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and other acquisitions; (xii) changes in the quality or composition of our loan and investment portfolios; (xii) adequacy of loan loss reserves; (xiii) increased competition; (xiv) loss of certain key officers; (xv) continued relationships with major customers; (xvi) deposit attrition; (xvii) rapidly changing technology; (xviii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xix) changes in the cost of funds, demand for loan products, or demand for financial services; (xx) other economic, competitive, governmental, or technological factors affecting our operations, markets, products, services, and prices; and (xxi) our success at managing the foregoing items.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.