The acquisition will help South Plains Financial to strengthen its presence in Texas with 26 branches and 13 mortgage production offices
South Plains Financial (SPFI) has agreed to acquire West Texas State Bank (WTSB) in a deal valued at around $76.1m (£56.9m).
Under the deal, WTSB will be integrated with SPFI’s wholly-owned banking subsidiary City Bank, which will continue as the surviving bank. City Bank is a chartered bank headquartered in Lubbock of Texas.
WTSB had $429m (£343.9m) in assets, $205m (£164.3m) in loans, and $376m (£301m) in deposits, as of 30 June this year.
Scope of the acquisition
The transaction will help South Plains to strengthen its presence in the Texas community bank segment with 26 branches and 13 mortgage production offices across the region, in addition to expanding its geographic footprint into the Permian Basin, including the Midland and Odessa MSAs.
South Plains chairman and CEO Curtis Griffith said: “We are pleased to announce the Company’s acquisition of WTSB, an exciting first step in our expansion into new West Texas communities and an important milestone since completing our IPO in May.
“WTSB shares a similar culture as South Plains with a longstanding commitment to their employees, customers and the communities that they serve, which creates a perfect union.”
The boards of directors of South Plains, City Bank, and WTSB have unanimously approved the merger agreement.
Subject to customary closing conditions including the approvals of bank regulatory agencies and WTSB’s shareholders, the deal is expected to close in the fourth quarter of this year.
Upon completion of the transaction, South Plains will hold around $3.2bn (£2.5bn) in assets, $2.1bn (£1.6bn) in loans and $2.7bn (£2.1bn) in deposits, based on the balance sheets of South Plains and WTSB as of 30 June this year.
WTSB chairman and CEO Jay Phillips said: “We are excited to join a successful, community-focused organization that is recognized for their customer service, dedication to their employees, and their financial commitment to their local communities.
“We are proud to join an organization with a true understanding of the independent spirit of West Texas and we look forward to working with South Plains and their management team to make the completion and integration of our companies a success.”
South Plains offers a range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas.
The firm’s major business operations include commercial and retail banking. It also offers insurance, investment, trust, and mortgage services.