Almost as quickly as Spirit of Texas Bank appeared in the Beeville market, it will soon be gone.
Arkansas-based Simmons First National Corporation, owner of Simmons Bank, will absorb Spirit of Texas Bancshares Inc., the owner of Spirit of Texas Bank, in a merger that was announced in November.
Simmons, according to a release announcing the purchase, expects to close the merger during the second quarter of 2022.
The deal is for approximately $581 million, which consists of a mixture of cash and Simmons’ common stock.
Spirit of Texas Bank operates 37 locations in the state, primarily in the Dallas-Fort Worth, Houston, San Antonio and Austin areas.
Spirit added the Beeville location to its holdings in 2018 when it purchased the First National Bank of Beeville for approximately $63.7 million.
As of late September, Spirit had total assets of $3.2 billion, total loans of $2.3 billion and total deposits of $2.7 billion.
Simmons Banks has more than 200 locations throughout Arkansas, Missouri, Tennessee, Texas, Oklahoma and Kansas.
It was named to the list of World’s Best Banks by “Forbes” for the second straight year in 2021 and ranked 29th on that publication’s America’s Best Banks list in 2021.
Simmons, as of late September, had total assets of $25.1 billion, total loans of $12.4 billion and total deposits of $19.6 billion.
“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,” said Simmons Chairman and CEO George Makris Jr. in the release announcing the merger. “Strengthening our Texas franchise has been a strategic priority and to partner 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.”
“The foundation of Spirit was built upon offering products and services that meet our customer’s financial needs and delivering an exceptional customer experience that is supported by a diverse and experienced team who are positioned in some of the most attractive markets in the Heart of Texas,” Spirit Chairman and CEO Dean O. Bass in that same release. “By joining forces with Simmons, we recognize the opportunity to align with a partner that shares our passion for providing high-quality customer service, the increased capacity to lend by leveraging a larger balance sheet and access to a broader array of products and services, including leading-edge digital capabilities.
“We believe the opportunity to join the Simmons team is very positive for our organization and will provide greater benefits to our customers and the communities we serve.”
The transaction is subject to approval by Spirit of Texas shareholders and regulatory approval. The boards of directors for both companies have already approved the merger.