Texas-based Diboll State Bancshares has agreed to merge into local lender Southside Bancshares in a deal worth $218.8m.
Diboll subsidiary First Bank & Trust East Texas will merge into Southside subsidiary Southside Bank as part of the deal.
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The merged entity will operate with the names Southside Bancshares and Southside Bank, and will manage around $7bn in assets.
Under the arrangement, shareholders of Diboll State Bancshares will receive 5,535,000 shares of Southside common stock and up to $25m in cash.
The merger has been approved by both companies’ boards of directors and is expected to be concluded during the fourth quarter of 2017, subject to regulatory and shareholder approvals.
Post deal completion, two board members of Diboll State Bancshares will join the Southside board.
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By GlobalDataSouthside Bank and Southside Bancshares president and CEO Lee Gibson said: “This merger is an excellent growth opportunity to further expand our footprint in the dynamic East Texas market, complementing our presence in North Texas and Austin.
“Jay Shands and the First Bank & Trust East Texas leadership team have built a strong organization focused on providing exceptional customer service and an unwavering commitment to communities. Our companies share many of the same values, making this merger a natural fit from a geographic, cultural, financial and strategic standpoint.”
