SouthState Closes Merger with Independent Financial

Rhea-AI Summary

SouthState (NYSE: SSB) has completed its acquisition of Independent Bank Group (NASDAQ: IBTX) on January 1, 2025. The merger includes the integration of Independent Bank into SouthState Bank, N.A., expanding SouthState's presence in Texas and marking its entry into Colorado. The combined entity now has approximately $65 billion in assets.

As part of the merger, three former Independent Financial directors have joined the boards of SouthState and SouthState Bank, increasing board membership from 12 to 15. The new board members are David R. Brooks (former Independent Financial chairman and CEO), Janet Froetscher (former director and current President of J.B and M.K. Pritzker Family Foundation), and G. Stacy Smith (former lead independent director and Managing Partner of SCW Capital).

Positive

• Expansion into new markets (Texas and Colorado)
• Significant increase in asset size to $65 billion
• Strategic board expansion with experienced directors
• Completed merger on schedule as planned

Negative

• None.

Insights

M&A Specialist

This merger represents a significant strategic expansion creating a $65 billion asset institution. The deal strengthens SouthState's market position in Texas and provides entry into Colorado, both high-growth markets. The timing aligns with industry consolidation trends as regional banks seek scale advantages to compete with larger institutions.

Key strategic benefits include geographical diversification, enhanced operational scale and improved competitive positioning in attractive markets. The addition of Independent Financial's Texas presence is particularly valuable given the state's robust economic growth and favorable banking environment. The merger's completion on schedule suggests smooth regulatory approval and well-executed integration planning.

For IBTX shareholders, this merger provides an opportunity to participate in a larger, more diversified banking platform. The appointment of three Independent Financial directors to SouthState's board ensures continuity and representation of IBTX's interests in the combined entity's governance structure.

Banking Industry Analyst

This consolidation exemplifies the ongoing trend of mid-size regional banks pursuing strategic mergers to achieve competitive scale. The combined $65 billion asset base positions SouthState more effectively against larger competitors, particularly in technology investments and regulatory compliance capabilities.

The merger's geographical focus on high-growth markets like Texas and Colorado is noteworthy. These markets offer superior demographic trends, business formation rates and economic growth potential compared to national averages. Texas, in particular, has shown remarkable resilience in banking sector performance with strong loan growth and deposit stability.

The retention of key Independent Financial leadership through board appointments suggests a thoughtful approach to cultural integration and relationship continuity. David Brooks' extensive community banking experience and local market knowledge will be valuable assets for the combined entity's Texas operations.

Expands Presence in TX & CO and Adds Three Board Members

WINTER HAVEN, Fla., Jan. 2, 2025 /PRNewswire/ -- SouthState Corporation (NYSE: SSB) ("SouthState" or the "Company") today announced the closing of its acquisition of Independent Bank Group, Inc. (NASDAQ: IBTX) ("Independent Financial") on January 1, 2025, through the merger of Independent Financial with and into SouthState. Immediately after the merger, also on January 1, 2025, Independent Financial's subsidiary bank, Independent Bank, merged with and into SouthState Bank, N.A. ("SouthState Bank"). As a result of these transactions, the combined company has expanded its presence in Texas, entered Colorado, and increased its asset size to approximately $65 billion.

"It's been a pleasure working with the team at Independent Financial since our announcement and we are pleased to close the transaction on schedule," said John Corbett, SouthState Chief Executive Officer. "Together, we will continue building our company with an entrepreneurial business model in the fastest growing markets in the country."

In connection with the merger, the Company announced the appointment of three Independent Financial directors to the boards of SouthState and SouthState Bank, increasing the size of each board from 12 to 15 members.

David R. Brooks, former Independent Financial chairman and CEO, began his banking career in the early 1980s and has been active in community banking since he led the investor group that acquired Independent Bank in 1988. Brooks currently serves as Chairman of Capital Southwest Corporation, and previously served as the Chief Financial Officer at Baylor University from 2000 to 2004. In 2018, Brooks was inducted into The Texas Bankers Hall of Fame.

Janet Froetscher, former director of Independent Financial, currently services as President of the J.B and M.K. Pritzker Family Foundation, a private foundation committed to innovative strategies for solving society's most challenging problems, a position she has held since 2016. Previously, Froetscher was the Chief Executive Officer of Special Olympics from 2013 to 2016, where she led a global team with operations and affiliates in more than 170 countries. She is a Board member of the Cboe Global Markets.

G. Stacy Smith, former lead independent director of Independent Financial, is the Managing Partner of SCW Capital, L.P., a private equity hedge fund focusing on financial and energy sectors, a position he has held since August 2013. Smith is also co-founder of and an active partner in Trinity Investment Group, which invests in private equity, public equity and hard assets. In addition, he serves as an advisor of EAW Energy Partners, an oil and gas minerals acquisition firm.

SouthState Corporation (NYSE: SSB) is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than 1.5 million customers throughout Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, and Virginia. The bank also serves clients nationwide through its correspondent banking division. Additional information is available at SouthStateBank.com.

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SOURCE SouthState Corporation

FAQ

What is the total asset size of SouthState after merging with Independent Financial (IBTX)?

Following the merger with Independent Financial (IBTX), SouthState's total asset size increased to approximately $65 billion.

When did the merger between SouthState and Independent Financial (IBTX) close?

The merger between SouthState and Independent Financial (IBTX) closed on January 1, 2025.

Which new markets did SouthState enter through the IBTX merger?

Through the merger with Independent Financial (IBTX), SouthState expanded its presence in Texas and entered the Colorado market.

How many new board members were added to SouthState's board following the IBTX merger?

Three new board members from Independent Financial (IBTX) were added to SouthState's board, increasing the size from 12 to 15 members.

Who are the new board members appointed from Independent Financial (IBTX)?

The new board members are David R. Brooks (former IBTX chairman and CEO), Janet Froetscher (former director), and G. Stacy Smith (former lead independent director).