The Bank Slate


SouthState to buy Independent Bank in Texas for $2 billion

SouthState in Winter Haven, Fla., has agreed to buy Independent Bank in McKinney, Texas.

The $46 billion-asset SouthState said in a press release that it will pay $2 billion in stock for the $18.9 billion-asset Independent. The deal, which is expected to close in the first quarter, priced Independent at 148% of its tangible book value.

Independent has $15.7 billion of deposits and $14.6 billion of loans.

“With a local, geographic management model, an industry-leading track record on credit and a presence in some of the best markets in the country, Independent … is a great fit with SouthState,” John Corbett, SouthState’s CEO, said in the release.

David Brooks, Independent’s chairman and CEO, and two other directors will join SouthState’s board. 

The deal is expected to be 27.3% accretive to SouthState’s 2025 earnings per share. It should take two years to earn back an estimated 9.6% dilution to SouthState’s tangible book value.

SouthState plans to cut about 25% of Indpendent’s annual noninterest expense. SouthState expects to incur $175 million of pretax merger expenses.

Raymond James and Davis Polk & Wardwell advised SouthState. Keefe, Bruyette & Woods and Wachtell, Lipton, Rosen & Katz advised Independent.

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