Griffin Advises Wichita Falls Bancshares, Inc. in its Merger with Chico Bancorp, Inc.

Griffin Financial Group served as exclusive financial advisor to Wichita Falls Bancshares, Inc. in its merger with Chico Bancorp, Inc. Wichita Falls Bancshares, Inc. is the parent company of First National Bank (“FNB”) and is based in Wichita Falls, Texas.

Situation
Wichita Falls Bancshares, Inc. has $581 million in assets and operates four branches in Tarrant and Wichita Counties and five mortgage loan production offices in the area. Chico Bancorp, Inc. is the parent company of First State Bank (“FSB”), which is headquartered in Chico, Texas and has $194 million in total assets and four branch offices in Wise County. The North Texas market area has an influx of over 300,000 people annually and is ranked in the top five markets for growth in the U.S. FNB has a high loan to deposit ratio of 100+% and is in need of low cost funding alternative. It also recently raised additional capital positioning them to capture the growth in North Texas.

Solution
FNB engaged Griffin Financial to advise on the acquisition of a bank to provide liquidity and complement its geographic footprint. With the help of Griffin, FNB announced on December 17, a definitive agreement to acquire FSB. FSB provides a seasoned footprint in the fast-growing market of North Texas providing a low cost of funds fueling continued loan growth with improved margin for First National Bank. FSB will provide $194M in assets, $93M in loans and $161M in deposits.

FSB has talented lenders and staff serving four offices in Wise County and a loan production office in Fort Worth. Their deposit base is diversified as is their loan base further complimenting FNB’s balance sheet. The acquisition will be the first in the 30+ year history of FNB, and they expect a smooth and rapid integration while keeping open to future acquisitions. It will remain a Sub S bank committed to the community and its shareholders.

Measures of Success
This transaction deploys FNB’s recently raised capital and provides low cost funding for growing lending programs. Geographical placement adds franchise value for the future. With the acquisition, FNB will have over $775M in assets, $600M in loans and $588M in deposits. It will position FNB for future growth, both organically and through acquisition in North Texas where demographics are attractive and revenue potential is substantial.