Simmons First National to Merge With Spirit of Texas Bank
Simmons First National acquired Spirit and its wholly-owned subsidiary, Spirit of Texas Bank, for $581 million in cash and Simmons’ common stock. The definitive merger agreement was executed on November 17.
The parties involved hope to bring synergy and long-term value to shareholders. Under the terms of the agreement, Simmons will issue 18,325,000 shares of its common stock. That means that the merger and acquisition deal will be accretive to Simmons’ earnings per share by 9.8 percent in 2023.
“Spirit is a highly regarded, high performing bank with whom we share a common philosophy: providing outstanding customer service and developing deep and long-lasting relationships with the clients and communities that we serve and where we live,” George Makris Jr., chairman and CEO of Simmons First National, said in a press release. “Strengthening our Texas franchise has been a strategic priority and partnering with Spirit not only enhances our current footprint but also establishes a platform for growth in Houston, Austin, San Antonio, and College Station. 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.”
Simmons First National and Spirit of Texas banks both have bank facilities in Texas. Established in 1903, Simmons Bank is a banking institution with more than 200 financial centers in several states outside Texas, including Arkansas, Missouri, Tennessee, Oklahoma, and Kansas.
Spirit of Texas Bank is a primary subsidiary of the Spirit of Texas Bancshares Inc., a bank holding company, with 37 locations in Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio-New Braunfels, Corpus Christi, Austin, and the Tyler metropolitan areas, along with offices in North Central and South Texas.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
More from blog
Your email address will not be published.