Two locally-based banks, Texas Capital Bancshares Inc. and Independent Bank Group Inc., are merging in an all-stock deal valued at $5.5 billion.
Under the agreement announced early Monday, the resulting holding company will retain the Independent Bank Group name and its bank will operate as Texas Capital. The merged company will be based in McKinney, where Independent recently moved into a new $52 million headquarters.
Independent Bank’s new 165,000-square-foot headquarters in McKinney’s Craig Ranch is the first phase of a 400,000-square-foot campus that could eventually house as many as 1,200 workers.
With a combined $39 billion in Texas deposits the merger of Texas Capital Bancshares Inc. and Independent Bank Group Inc. will create the largest Texas-based bank by that measure, according to S&P Global and FDIC deposit data.
The publicly traded banks will combine under Independent’s IBTX ticker symbol to create what the companies described as a “super regional bank.” The deal, which is subject to regulatory approval, will create a bank with $48 billion in assets when it closes in mid-2020.
Texas Capital shareholders will receive 1.0311 shares of Independent Bank Group for each Texas Capital share they own. Those shareholders will control 55% of the combined company.
“Independent Bank Group is an outstanding complement to Texas Capital with its enviable commercial branch network, small business market leadership and solid deposit funding model in combination with our strong corporate banking practice and powerful technology and compliance infrastructure,” said a statement from C. Keith Cargill, Texas Capital president and CEO.
David R. Brooks, Independent Bank Group’s chairman and CEO, will lead the merged bank. Cargill will serve as a special adviser, assisting with talent and client retention and strategic initiatives.
“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,” Brooks said in a statement.
His leadership team will include five Texas Capital and four Independent Bank executives. The company’s board will include seven Texas Capital and six Independent Bank directors.
The merger is expected to result in an annual cost savings of $100 million, the companies said. That cost savings could come mostly from staffing, overhead and IT synergies. Eight of 11 TCBI branches are within 5 miles of an IBTX branch, according to the companies.
The two companies have focused their banking operations around Dallas, Austin, San Antonio, Houston and Denver. The companies believe the merger will strengthen core deposits through the combination of centrally located downtown bank branches and suburban branch networks.
McKinney’s Independent Bank opens new Craig Ranch headquarters
McKinney’s Independent Bank opens new Craig Ranch headquarters
By Steve Brown