SouthState Corporation completes $2bn acquisition of Independent Bank Group

SouthState Corporation (NYSE: SSB) has officially closed its $2 billion all-stock acquisition of Independent Bank Group, Inc. (NASDAQ: IBTX), marking a pivotal expansion into Texas and Colorado. The merger, finalized on January 1, 2025, unites two prominent financial institutions, creating a combined entity with $65 billion in total assets. This milestone strengthens SouthState’s position as a leading regional bank with a growing presence in some of the nation’s fastest-growing markets.

Strategic Expansion into Key Growth Markets

The merger underscores SouthState’s strategy of targeting high-growth regions. Independent Bank Group brings an established presence in Texas and the Colorado Front Range, regions characterized by strong population growth and economic vitality. Combined with SouthState’s operations across Florida, Georgia, the Carolinas, Alabama, and Virginia, the deal broadens the bank’s reach to over 1.5 million customers nationwide.

SouthState CEO John Corbett emphasized the alignment of the two organizations’ entrepreneurial models, highlighting the opportunities to grow in dynamic markets. Corbett noted the strategic advantages of merging Independent Bank’s local expertise with SouthState’s robust banking infrastructure, positioning the combined entity to serve both individual and corporate clients more effectively.

Enhanced Financial Strength and Customer Offerings

With $55 billion in deposits and $48 billion in gross loans, the merger creates one of the most formidable regional banking platforms in the U.S. Customers will benefit from an expanded suite of services, including commercial lending, wealth management, and consumer banking, all supported by SouthState’s nationally chartered banking infrastructure.

The merger also allows SouthState to diversify its operations, mitigating geographic and economic risks while enhancing its ability to compete with larger national banks. Independent Bank Group’s operations in 12 of the nation’s 15 fastest-growing Metropolitan Statistical Areas (MSAs) bring a significant edge in accessing new markets.

Leadership Integration for Strategic Continuity

In a significant step toward seamless integration, three Independent Bank Group board members have joined the boards of SouthState Corporation and SouthState Bank. These appointments increase board size from 12 to 15 members and ensure continuity in leadership and governance.

Among the appointees is David R. Brooks, former chairman and CEO of Independent Bank Group. With a career spanning decades in community banking and financial management, Brooks is expected to play a key role in aligning the combined organization’s strategic goals. Janet Froetscher, known for her leadership at the Special Olympics and the J.B. and M.K. Pritzker Family Foundation, brings expertise in global operations and strategic innovation. Additionally, G. Stacy Smith, a private equity and energy investment specialist, adds valuable insights to support growth initiatives.

Transaction Details and Shareholder Value

The all-stock transaction offers Independent Bank Group shareholders 0.60 shares of SouthState common stock for each share owned, valuing the deal at $48.51 per share based on SouthState’s stock price as of May 2024. The merger boosts SouthState’s market capitalization to approximately $8.2 billion, positioning the company for future growth.

The deal was finalized following regulatory approvals and shareholder votes, reflecting strong support from both organizations. Advisors to the transaction included Raymond James & Associates for SouthState and Keefe, Bruyette & Woods for Independent Bank Group.

A Transformational Milestone in Regional Banking

The acquisition sets a benchmark for strategic growth through mergers in the financial sector. By combining resources, expertise, and market presence, SouthState and Independent Bank Group aim to deliver enhanced value to clients, shareholders, and employees.

This merger not only expands SouthState’s geographical footprint but also underscores its commitment to building a resilient, customer-focused institution. As the integration progresses, the combined entity is well-positioned to compete in an evolving financial landscape.