Southside Bancshares, Inc. has announced it will merge with a Diboll bank, First Bank & Trust East Texas. The combined company, to be called Southside Bancshares and Southside Bank, will have nearly $7 billion in assets.
"Under the terms of the agreement, Diboll State Bancshares, Inc. shareholders will receive, in aggregate, 5,535,000 shares of Southside common stock and up to $25 million in cash," a news release stated. "Based on Southside Bancshares, Inc.'s closing stock price of $35.01 on June 12, the value of consideration to Diboll State Bancshares, Inc. shareholders would be $218.8 million in the aggregate."
The merger was approved unanimously by the boards of both companies.
"We are excited to partner with a superb bank like First Bank & Trust East Texas. 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," said Lee Gibson, president and CEO of Southside Bank and Southside Bancshares, Inc. "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."
Two Diboll State Bancshares board members will join the Southside board, the release stated. The Diboll executive management team will remain in place, but with new titles reflecting the merger.
Jay Shands will now be regional president for East Texas, while Trey and Jim Denman will both be executive vice presidents.
"We are excited about the opportunity to join Southside, as both companies operate strong community banking models," said Shands. "Bringing together our companies will help provide our customers and employees a broader suite of products and services, increased branch locations and greater financial support to execute our strategy. This merger is a great outcome for our shareholders and positions us well for sustainable success over the long term."