Simmons Bank and Spirit of Texas are set to merge in a deal worth approximately $581m.
Under the terms of the agreement, shares of shares of Spirit’s common stack and restricted stock units will be converted into the right to receive shares of Simmons’ common stock. Spirit’s stock options and warrants will also be cashed out.
George Makris, Jr., Simmons’ chairman and CEO, said: “Strengthening our Texas franchise has been a strategic priority and to partner with Spirit not only enhances our current footprint, but also establishes a platform for growth in Houston, Austin, San Antonio and College Station.”
“These markets have been among the fastest growing in the nation in terms of population and economic activity and projections call for this trend to continue. This merger places us in an advantageous position to capture future growth in the Lone Star State.”
According to the CEO, two partners will be joining the firm. Dean Bass, who will join the board, and David M. McGuire, who will lead the executive team.
Spirit is a Texas-based bank holding company that operates in 37 locations within the Texas Triangle, including Dallas-Fort Worth, Houston, San Antonio, and Austin.
Additional locations are in the Bryan-College Station, Corpus Christi, and Tyler areas, along with offices in North Central and South Texas.
As of September 30, 2021, Spirit had total assets of $3.2bn, total loans of $2.3bn and total deposits of $2.7bn.
In October, Simmons acquired Tennessee-based Landmark Community Bank and Triumph Bancshares, the parent company of Triumph Bank.
Earlier in the year, Simmons Bank constructed a second bank branch in White Hall, with plans to open in early 2022 to meet growing customer demand.
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