The combined ‘super-regional bank’ based in Texas is expected bring in nearly $100m in annual cost synergies
The parent companies of Texas Capital Bank and Independent Bank have signed a definitive agreement to merge their banking operations into a Texas-based bank with a market value of $5.5bn.
The combined holding company will go by the name Independent Bank Group and the combined bank will be called Texas Capital. The corporate headquarters of the combined bank will be located in McKinney, Texas.
The two companies stated that the merger will create a ‘super-regional bank’. Retail locations in Colorado will continue to operate under the Independent Financial branding.
Under the merger terms, Texas Capital shareholders will receive 1.0311 shares of Independent Bank Group for each Texas Capital share they own. Former Texas Capital shareholders will own 55% in the combined entity, while Independent Bank Group shareholders will own 45%.
Texas Capital president and CEO C. Keith Cargill said: “Today is an exciting day for Texas Capital and I am confident that executing this transformative merger of equals is the right strategy for our team, our company, our clients, our communities and our shareholders. It has been an honor to build Texas Capital into one of the best business and private wealth banks in the U.S.
“We have found the ideal partner in Independent Bank Group given our shared core values and strong commitment to fostering talent and delivering a premier client experience.”
The combined bank will have nearly $48bn in assets, $39bn in deposits
Providing a strong foundation to serve clients, the combined company is expected to have nearly $48bn in assets and $39bn in deposits. The merger will lead to the creation of the largest Texas-based bank by Texas deposits with a major presence in Colorado.
The improved scale provided by the merger is expected to enable further investment in technology to better manage risks.
The merger could also bring $100m in annual cost synergies, improving profitability, while supporting sustained growth.
Independent Bank Group chairman and CEO David R. Brooks said: “Combining Independent Bank Group and Texas Capital is the logical next step for both companies. We have built a strong, broad commercial branch footprint across Texas and in Colorado through multiple transactions, which have effectively doubled our assets every two years.
“This combination with Texas Capital is a singular opportunity to significantly diversify our customer base, business lines and loan concentrations, enabling us to accelerate our growth and enhance our financial flexibility for continued strategic investments.”