Texas Capital Bancshares and Independent Bank Group have mutually agreed to terminate their previously announced all-stock merger of equals deal.
The merger, which was first announced in December last year, was called off due to the significant impact of the Covid-19 pandemic on global markets.
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The termination of the proposed merger was approved by the board of directors of both the companies.
Texas Capital chairman Larry Helm said: “Due to the unprecedented impact of the Covid-19 pandemic, both companies’ boards of directors believe it is in the best interests of our employees, clients and all of our shareholders to focus on managing our business during this time.
“Texas Capital Bank remains focused on supporting the health and safety of our colleagues and meeting all our clients’ needs during these challenging times and for many years thereafter.
“Our team and resources will be focused on leveraging our innovative and differentiated capabilities to continue providing a premier client experience and deliver elevated returns.
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By GlobalData“Further, we maintain the scalability and commitment to operational excellence that will enable us to drive increased efficiencies and profitability and support sustainable, long-term value creation.”
It is estimated that the merger could have created the second-largest bank in Texas, US.
The banks would consolidate to share technology costs and address the issue with low-interest rates.
As a result of the mutual agreement, neither party will pay any termination fees.
