FirstSun adding to Texas operations with Pioneer acquisition

FirstSun Capital Bancorp in Denver has agreed to buy Pioneer Bancshares in Austin, Texas.

The $5.3 billion-asset FirstSun said in a press release Tuesday that it expects to complete the purchase of the $1.8 billion-asset Pioneer in October. FirstSun did not disclose the price it will pay in the all-stock deal.

Acquiring Pioneer, the parent of Pioneer Bank, will add to the Texas footprint FirstSun gained when it bought Strategic Growth Bancorp in June 2017. FirstSun’s presence is centered in El Paso, where it has three branches with $264 million of deposits, according to mid-2020 data from the Federal Deposit Insurance Corp.

Acquiring Pioneer would give FirstSun 19 additional Texas branches, as well as an entry point into Dallas, Houston, San Antonio and Austin.

“We believe the additions brought by Pioneer will complement our growing presence in Texas and will be a perfect fit with our existing customer base and relationship-driven philosophy,” FirstSun Chairman Mollie Carter said in the release.

The deal “brings together two strong, growth-oriented banks that will provide a more competitive platform to our communities in Austin, Houston, Dallas, San Antonio and our markets in between,” Pioneer President and CEO Ron Cobden said in the release.

FirstSun’s deal for Pioneer comes a little more than eight months after it bought the wealth management business of New York-based CIT Group.

FirstSun was advised by Stephens and Nelson Mullins Riley & Scarborough. Pioneer was advised by Piper Sandler and Bracewell.