11:14 AM EDT, 05/20/2024 (MT Newswires) -- Southeast regional bank SouthState ( SSB ) agreed to buy Independent Bank Group ( IBTX ) in a $2 billion all-stock deal, expanding its presence into Texas and Colorado.

Shareholders of Independent Bank Group ( IBTX ) will receive 0.60 shares of SouthState ( SSB ) common stock for each share owned, according to a joint statement released Monday. At SouthState's ( SSB ) closing price of $80.85 on Friday, the per-share consideration is valued at $48.51.

The combined company will have pro forma total assets of $65 billion, deposits of $55 billion and gross loans of $48 billion. Independent Bank ( IBTX ) has roughly $18.9 billion in total assets, $15.7 billion in deposits and $14.6 billion in loans. It operates in Texas markets Dallas/Fort Worth, Austin and Houston, as well as in Colorado Front Range markets including Fort Collins and Colorado Springs.

"With a local, geographic management model, an industry-leading track record on credit and a presence in some of the best markets in the country, Independent Bank Group ( IBTX ) is a great fit with SouthState ( SSB )," SouthState ( SSB ) Chief Executive John Corbett said in a statement.

The transaction is expected to close by the end of the first quarter of 2025, pending regulatory approvals. Shares of Independent Bank ( IBTX ) climbed nearly 7% in Monday trade while SouthState's ( SSB ) dipped 0.9%.

All Independent Bank ( IBTX ) directors and other stockholders that own a collective 13.2% of the bank's stock have agreed to support the transaction. Three of those directors, including CEO David Brooks and the bank's lead independent director G. Stacy Smith, will join the SouthState Corp. ( SSB ) and SouthState Bank boards once the transaction closes.

"The combination of these two companies operating in growing markets provides a great opportunity for our Independent Bank Group ( IBTX ) teammates, clients and communities to flourish," Brooks said.

The US saw several bank failures in 2023, including Silicon Valley Bank and Signature Bank, while Philadelphia-based Republic First Bank failed last month. UMB Financial (UMBF) in April agreed to buy Heartland Financial (HTLF) in an all-stock deal valued at $2 billion.

Price: 80.83, Change: -0.02, Percent Change: -0.03