On November 19, Pine Bluff, Arkansas-based Simmons First National Corp., the holding company for Pine Bluff, Arkansas-based Simmons Bank, and Conroe-based Spirit of Texas Bancshares Inc. announced the execution of a definitive merger agreement pursuant to which Simmons will acquire Spirit, and its wholly owned subsidiary, Spirit of Texas Bank SSB, in a transaction consisting of a mixture of cash and Simmons’ common stock with an aggregate value of approximately $581 million, based on the Simmons’ closing stock price of $31.73 on November 17. Simmons expects to close the proposed transaction during the second quarter of 2022.
Spirit of Texas Bancshares operates 37 locations, primarily in the Texas Triangle—the fastest-growing megaregion in the U.S., consisting of the Dallas/Fort Worth, Houston, San Antonio and Austin metropolitan areas—with additional locations in the Bryan-College Station, Corpus Christi and Tyler metropolitan areas, along with offices in North Central and South Texas. As of September 30, Spirit of Texas Bancshares had total assets of $3.2 billion, total loans of $2.3 billion and total deposits of $2.7 billion.
“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,” says George Makris Jr., Simmons’ chairman and CEO. “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.
“In addition to cultural and geographic synergies, the financial metrics of this merger are consistent with our stated M&A parameters and strategy of partnering with high-quality banks within our current footprint that represent an efficient use of our capital and deliver on our commitment of building long-term value for our shareholders,” Makris adds. “We’re very pleased to welcome our newest partners to the Simmons organization, including Dean Bass, who will join our board shortly after closing as an independent director, and David M. McGuire, who will provide leadership as a key member of our executive team in Texas.”
“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,” says Dean O. Bass, chairman and CEO of Spirit of Texas Bancshares. “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 proposed transaction culminates an eventful year for Simmons First National Corp. In October, the company completed the acquisitions and conversions of Tennessee-based Landmark Community Bank and Triumph Bancshares Inc., the parent company of Triumph Bank.
Established in 1903, Simmons Bank operates more than 200 financial centers in Arkansas, Missouri, Tennessee, Texas, Oklahoma and Kansas. It was named to Forbes’ list of “World’s Best Banks” for the second consecutive year and ranked among the top 30 banks in Forbes’ list of “America’s Best Banks” for 2021. Spirit of Texas Bank was established in 1976.