After a Fort Worth-based bank merges with Southside Bank, it will become the ninth-largest bank in Texas, company officials announced on Tuesday.
Southside Bancshares, Inc. (SBSI), parent company of Tyler-based Southside Bank, and OmniAmerican Bancorp, Inc., the holding company for OmniAmerican Bank, announced they have signed a definitive agreement under which OmniAmerican will merge into Southside.
“This merger of two strong institutions is a superb strategic fit, creating a well-capitalized, community-oriented bank with a major presence in East Texas, Central Texas and now Fort Worth,” Sam Dawson, president and chief executive officer of Southside Bank and SBSI, said in a prepared statement.
“We see tremendous growth potential in Fort Worth, as well as powerful synergies from teaming up with one another. We are excited to partner with OmniAmerican Bank, which shares with us a proud tradition of outstanding customer service and an unsurpassed community commitment.”
Southside Bancshares, Inc. is a bank holding company with about $3.4 billion in assets that owns 100 percent of Southside Bank. Southside Bank has 50 banking centers in Texas and operates a network of 49 ATMs.
OmniAmerican Bank operates 14 full-service branches in the Dallas/Fort Worth Metroplex and offers a full array of consumer products and services as well as business/commercial services, mortgages and retirement planning. Founded almost 60 years ago, OmniAmerican Bank had $1.39 billion in assets as of Dec. 31.
The combined company will have nearly $5 billion in assets and be the ninth-largest bank with headquarters in Texas, by deposits, according to the statement.
“Both banks have well-aligned community banking philosophies, clean balance sheets, strong boards and seasoned management teams,” said Tim Carter, president and CEO of OmniAmerican Bank, who will become president of the North Texas Region for Southside upon completion of the merger.
“Bringing together our branch network and Fort Worth presence with Southside Bank’s 50 facilities in Texas gives us a dynamic foundation to serve our commercial, mortgage and consumer customers with even greater convenience, expanded product and service offerings, and additional lending capacity. This merger is a great outcome for our company’s shareholders and positions us well for sustainable success over the long term.”
The merger was unanimously approved by the boards of directors of both companies and is expected to close during the fourth quarter of 2014, after receipt of regulatory approvals, the approval of the shareholders of OmniAmerican Bancorp, Inc. and Southside Bancshares, Inc., and the satisfaction of other customary closing conditions.
The combined entity will operate under the names Southside Bancshares, Inc. and Southside Bank.
All of OmniAmerican’s executive management team will remain in place after the merger, assuring the continuity of local decision making.
Under the terms of the agreement, shareholders of OmniAmerican will receive 0.4459 shares of Southside common stock plus $13.125 in cash for each outstanding share of OmniAmerican common stock. Based on Southside’s closing stock price of $30.46 on Monday, the per share value of consideration to OmniAmerican shareholders would be $26.71. The transaction is valued at approximately $307 million in aggregate.