Cullen-Frost Bankers, Inc. of San Antonio has agreed to pay $220 million in stock and cash to acquire Odessa-based WNB Bancshares, Inc.
Cullen-Frost Chairman and CEO Dick Evans said the deal will increase Cullen-Frost’s share of the oil production market in the Permian Basin, which accounts for 14 percent of the nation’s oil production and more than half the oil production in Texas.
WNB Bancshares operates eight branches through its subsidiary, Western National Bank, primarily in the Midland and Odessa areas with $1.4 billion in assets, $1.2 billion in deposits and $656 million in loans as of June 30, 2013.
WNB president, Jack Wood, will join the Cullen/Frost Board.
The transaction is expected to close in January 2014.
Approval is needed from the Federal Reserve and the Texas Department of Banking.
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $22.6 billion in assets at June 30, 2013.
Among the top 50 largest U.S. banks and one of 24 banks included in the KBW Bank Index, Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Rio Grande Valley and San Antonio regions. It was founded in 1868.
Chairman and CEO Dick Evans said, The Permian Basin plays a big role in the Texas economy because it is a driver of the state’s surging oil and gas business. Joining WNB with the Cullen/Frost team is a great way to increase our participation in the region, and we’re proud to bring our 145 year – old franchise to this dynamic area. Currently, the Permian Basin is responsible for approximately 14 percent of the oil produced in the United States and 57 percent of the oil produced in Texas.