Dateline: August 30, 2007

Local bank to have new owners

NETEX Bancorporation, parent company for Pilgrim Bank, announced Monday afternoon that it had entered into a definitive agreement to acquire City Bancorp, Inc., the parent company for Community Bank, a Texas banking association with offices in Sulphur Springs, Wellington, and Clarendon.

City Bancorp President and CEO Don Donaldson said he thinks the move will be good for everyone.

“We are pleased to join with Pilgrim Bank,” Donaldson said. “Our customers can look forward to an expanded presence in East Texas and the additional products and services that Pilgrim Bank offers.”

Under the terms of the agreement, NETEX is to acquire all of the common stock and warrants of City Bancorp for cash.  The transaction has been approved by the board of directors of NETEX and City Bancorp.  The acquisition is subject to customary conditions, including the approval of the shareholders of City Bancorp as well as bank regulatory authorities.

Ken Pilgrim, Chairman of the Board of Pilgrim Bank and NETEX, said his company is delighted to associate with City Bancorp and to expand its operations.

“This acquisition will expand our presence into Sulphur Springs in East Texas and Clarendon and Wellington in the Texas Panhandle,” Pilgrim said. “We expect that their expertise and knowledge of their respective markets will enhance our franchise. We welcome current Community Bank customers into our corporate family.”

Community Bank, based in Wellington, was founded in 1910 and expanded its operations into East Texas in 2004, opening a branch at 1404 South Broadway in Sulphur Springs.  At June 30, 2007, Community Bank had total assets of $ 76.3 million.

Pilgrim Bank was founded in 1911 and has three banking offices, including an office in Pittsburg and two offices in Mount Pleasant.  On June 30, 2007, Pilgrim Bank had total assets of $ 207.6 million.  Upon completion of the proposed transaction, it is anticipated that the combined bank will have approximately $283.9 million in total assets.

Lanny Brenner, Chief Executive Officer of Pilgrim Bank and NETEX said, “We are pleased that both Pilgrim Bank and Community Bank share a common goal of serving our customers, our stockholders, our employees, and our community as we continue to build an exceptional community bank that offers great customer service.”

Under the agreement, Donaldson, Matthew Hanna, and one other individual will become directors of Pilgrim Bank.  The transaction is expected to close in the fourth quarter of 2007, with the banks to combine operations in early 2008. 

According to Pilgrim Bank’s Web site, its principal shareholder is Lonnie “Bo” Pilgrim, the East Texas chicken producer whose Pilgrim’s Pride is the largest poultry company in America and the second-largest producer in Mexico with more than $7 billion in annual sales.