Simmons First National to acquire smaller rival Spirit of Texas Bancshares for $581m
Simmons First National Corporation, the owner of Simmons Bank, has agreed to acquire smaller rival US bank holding company Spirit of Texas Bancshares, the owner of Spirit of Texas Bank SSB, in a deal worth around $581 million.
Based in Texas, Spirit of Texas Bancshares operates 37 locations mainly in Dallas-Fort Worth, Houston, San Antonio and Austin metropolitan areas. As of 30 September 2021, Spirit of Texas Bancshares had $3.2 billion in total assets, $2.3 billion in total loans, and $2.7 billion in total deposits.
On the other hand, Simmons First National operates over 200 financial centers located across the states of Arkansas, Missouri, Oklahoma, Tennessee, Texas, and Kansas. As of 30 September 2021, Simmons First National had $25.1 billion in total assets, $12.4 billion in total loans, and $19.6 billion in total deposits.
George Makris, Jr. — Simmons First National 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. We believe this merger places us in an advantageous position to capture future growth in the Lone Star State.”
As per the terms of the deal, Simmons First National will issue nearly 18,325,000 of its shares to Spirit of Texas Bancshares’ shareholders.
Dean O. Bass — Chairman and CEO of Spirit of Texas Bancshares said: “By joining forces with Simmons, we recognize the opportunity to align with a partner that shares our passion for providing high-quality customer service, the increased capacity to lend by leveraging a larger balance sheet and access to a broader array of products and services, including leading-edge digital capabilities.
“We believe the opportunity to join the Simmons team is very positive for our organization and will provide greater benefits to our customers and the communities we serve.”
The deal, which is subject to approval from Spirit of Texas Bancshares’ shareholders, regulatory approval, and other closing conditions, is anticipated to close during Q2 2022.