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SouthState Corp Acquires Independent Bank in an All-Stock Transaction for $2 Billion

  • May 20, 2024

SSB IBTX Merger

Regional lender SouthState Corporation (SSB) on May 20, 2024, entered into a definitive merger agreement to acquire Independent Bank Group, Inc. (IBTX) for about $2 billion.

Under the deal terms, Independent Bank shareholders will receive 0.60 shares of SouthState common stock for each stock they own. The deal values Independent Bank at $48.51 per share, which represents a premium of 10.40% from the stock’s last close.

The all-stock deal will create a combined bank with total assets of $65 billion, deposits of $55 billion, and gross loans of $48 billion, with a market capitalization of about $8.2 billion. The deal is expected to establish SouthState’s position in Dallas-Fort Worth, Austin, and Houston areas in Texas and the Colorado Front Range.

Independent Bank currently holds a Price/Book (TTM) ratio of 0.76, below the sector median of 1.15.

The deal highlights the increasing consolidation in the U.S. regional banking sector, which experienced significant strain last year following the collapse of three mid-sized lenders.

Last month, we saw two regional banking deals, Hope Bancorp (HOPE) buying Territorial Bancorp (TBNK) for $78.6 million, and UMB Financial Corporation (UMBF) buying rival Heartland Financial USA, Inc. (HTLF) for $2 billion.

Three Independent Bank directors, including CEO David Brooks, will join the SouthState board upon the completion of the transaction, which is expected by the end of the first quarter of 2025.

For additional details, refer to the Deal Metrics page here.

Editor’s Note: Baranjot Kaur contributed to this article

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