Texas-based Independent Bank to be bought for $2 billion by Florida's SouthState

By Tomi Kilgore

The all-stock deal values Independent Bank's stock at a 10% premium

Independent Bank Group Inc. will no longer be independent, after the Texas-based bank announced Friday an agreement to be acquired by Florida's SouthState Corp. in an all-stock deal valued at about $2 billion.

"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 Bank Group is a great fit with SouthState," said SouthState Chief Executive John Corbett.

Shares of Independent Bank (IBTX), which does business as Independent Financial, surged 9.3% in premarket trading, and SouthState shares (SSB) tacked on 3%. Independent Bank's stock is on track to open at the highest prices seen since Feb. 1.

Under the terms of the deal, Independent Bank shareholders will receive 0.6 shares of SouthState common stock for each Independent Bank shares they own.

Based on Friday's closing prices, that values Independent Bank's stock at $48.51 each, representing a 10.4% premium.

That price implies a market capitalization for Independent Bank of $2.01 billion. SouthState's market cap at Friday's close was $6.16 billion.

After the deal closes, which is expected to occur by the end of the first quarter of 2025, three directors of Independent Bank's board, including current Chairman and Chief Executive David Brooks, will join the SouthState board.

"We are excited about the opportunity to join SouthState, a company whose culture, business model and credit discipline matches well with ours," Brooks said. "The combination of these two companies operating in growing markets provides a great opportunity for our Independent Bank Group teammates, clients and communities to flourish."

Independent Bank has about 18.9 billion in total assets, $15.7 billion in deposits and $14.6 billion in loans. After the deal closes, the combined company will have $65 billion in total assets, $55 billion in deposits and $48 billion in loans.

The deal comes a little more than a year after the failures of Silicon Valley Bank and Signature Bank wreaked havoc on the regional banking sector.

During the worst of the regional-banking crisis, in March and April 2023, Independent Bank's stock tumbled a total of 38%, while SouthState shares lost 14.5% and the SPDR S&P Regional Banking ETF KRE dropped 30.7%.

Since then, it's been a different story. Over the past 12 months through Friday, Independent Bank's stock has run up 32.8% and SouthState shares have rallied 27.7%, while the regional bank ETF has advanced 30.6% and the S&P 500 index SPX has gained 26.5%.

-Tomi Kilgore

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05-20-24 0827ET

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