South Plains Financial, Inc. Announces the Acquisition of West Texas State Bank in Odessa, Texas
25 July 2019 - 7:55PM
South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the
“Company”), the parent company of City Bank, today announced the
entry into a merger agreement with West Texas State Bank, Odessa,
Texas (“WTSB”), whereby South Plains will acquire WTSB in an all
cash transaction valued at $76.1 million. As a result of the
transaction, WTSB will be merged with and into SPFI’s wholly-owned
banking subsidiary, City Bank, with City Bank continuing as the
surviving bank. As of June 30, 2019, WTSB had $429 million in
assets, $205 million in loans, and $376 million in deposits.
The transaction strengthens South Plains’
position as a leading Texas community bank with 26 branches and 13
mortgage production offices across Texas, while expanding its
geographic footprint into the Permian Basin, including the Midland
and Odessa MSAs. Upon closing, South Plains will have
approximately $3.2 billion in assets, $2.1 billion in loans and
$2.7 billion in deposits, based on the balance sheets of South
Plains and WTSB as of June 30, 2019.
Curtis Griffith, Chairman and Chief Executive
Officer of South Plains, commented, “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. Additionally, the merger will
leverage our existing infrastructure which will provide scale
benefits as we strive to deliver value for all of our
stakeholders. We look forward to welcoming WTSB’s employees
and customers to South Plains.”
Jay Phillips, Chairman and Chief Executive
Officer of WTSB, 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.”
Cory Newsom, President of South Plains, stated,
“We believe that our partnership with WTSB is an efficient use of
the capital raised in the Company’s recently-completed
IPO.”
The merger agreement has been unanimously
approved by the boards of directors of South Plains, City Bank and
WTSB, and is subject to customary closing conditions, including the
approvals of bank regulatory agencies and WTSB’s
shareholders. The merger is expected to close in the fourth
quarter of 2019.
Keefe, Bruyette & Woods, A Stifel Company,
served as financial advisor to South Plains and Hunton Andrews
Kurth LLP served as South Plains’ legal advisor. Piper
Jaffray & Co. served as financial advisor to WTSB and Alston
& Bird LLP served as WTSB’s legal advisor.
About South Plains Financial,
Inc.
South Plains is the bank holding company for
City Bank, a Texas chartered bank headquartered in Lubbock,
Texas. City Bank is one of the largest independent banks in
West Texas and has additional banking operations in the Dallas and
El Paso markets, as well as in the Greater Houston, and College
Station Texas markets, and the Ruidoso and Eastern New Mexico
markets. South Plains provides a wide range of commercial and
consumer financial services to small and medium-sized businesses
and individuals in its market areas. Its principal business
activities include commercial and retail banking, along with
insurance, investment, trust and mortgage services. Please
visit https://www.spfi.bank for more information.
Forward Looking Statements
This press release contains forward-looking
statements. These forward-looking statements reflect South
Plains’ current views with respect to, among other things, the
completion of its acquisition of WTSB. Any statements about
South Plains’ expectations, beliefs, plans, predictions, forecasts,
objectives, assumptions or future events or performance are not
historical facts and may be forward-looking. These statements
are often, but not always, made through the use of words or phrases
such as “anticipate,” “believes,” “can,” “could,” “may,”
“predicts,” “potential,” “should,” “will,” “estimate,” “plans,”
“projects,” “continuing,” “ongoing,” “expects,” “intends” and
similar words or phrases. South Plains cautions that the
forward-looking statements in this press release are based largely
on South Plains’ expectations and are subject to a number of known
and unknown risks and uncertainties that are subject to change
based on factors which are, in many instances, beyond South Plains’
control. Additional information regarding these risks and
uncertainties to which South Plains’ business and future financial
performance are subject is contained in South Plains’ Prospectus
filed with the U.S. Securities and Exchange Commission (“SEC”),
dated May 8, 2019 (“Prospectus”), and other documents South Plains
files with the SEC from time to time. South Plains urges
readers of this press release to review the Risk Factors section of
that Prospectus and the Risk Factors section of other documents
South Plains files with the SEC from time to time. Actual
results, performance or achievements could differ materially from
those contemplated, expressed, or implied by the forward-looking
statements due to additional risks and uncertainties of which South
Plains is not currently aware or which it does not currently view
as, but in the future may become, material to its business or
operating results. Due to these and other possible
uncertainties and risks, readers are cautioned not to place undue
reliance on the forward-looking statements contained in this press
release. Any forward-looking statements presented herein are
made only as of the date of this press release, and South Plains
does not undertake any obligation to update or revise any
forward-looking statements to reflect changes in assumptions, new
information, the occurrence of unanticipated events, or otherwise,
except as required by law.
Contact: |
Mikella Newsom, Chief Risk Officer and Secretary |
|
investors@city.bank |
|
(806) 792-7101 |
|
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Source: South Plains Financial, Inc.
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