Independent Bank Group, Inc. (NASDAQ: IBTX) (“the company”) is the $18.9 billion in assets bank holding company for McKinney, Texas based Independent Bank (“the bank”). The company has an attractive Texas (DFW and Houston) and growing Colorado (Front Range) franchise focused predominantly on Commercial Real Estate lending (CRE). In 2Q24, SouthState Corporation (NYSE: SSB) (KBRA senior unsecured debt rating: BBB+) and Independent Bank Group, Inc. announced a definitive merger agreement in an all-stock transaction that is expected to close 1Q25. The pending deal will create a pro forma institution with $65 billion of assets, $55 billion of deposits, and $48 billion of loans. With respect to deal terms, the transaction is valued at approximately $2 billion, or 1.48x P/TBV (a 10% premium to IBTX).
While IBTX has focused on operating as a granular (average CRE loan ~$1.7 million), local small-to-mid-market CRE lender, the company also provides wealth…
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