Independent Bank Group, Inc. (NASDAQ:IBTX), currently valued at $2.71 billion, announced today that the Federal Reserve Board and the Office of the Comptroller of the Currency have approved the proposed merger with SouthState Corporation. This regulatory approval marks a significant step toward finalizing the merger, which was initially agreed upon on May 17, 2024. The announcement comes as IBTX shows strong momentum, with shares up over 57% in the past six months according to InvestingPro data.
The merger involves both the holding companies and the respective bank subsidiaries, SouthState Bank, National Association, and Independent Bank (NASDAQ:INDB) (doing business as Independent (LON:IOG) Financial).
With all necessary regulatory approvals now in place, the transaction is expected to close around January 1, 2025, subject to customary closing conditions. InvestingPro analysis reveals that Independent Bank Group has maintained dividend payments for 12 consecutive years, demonstrating consistent shareholder returns.
This merger is anticipated to expand the combined entity's presence and resources, although the companies caution that forward-looking statements regarding the merger's benefits are subject to numerous factors and uncertainties. These include the integration of operations, potential changes in market conditions, and customer reactions, among others.
In other recent news, Independent Bank Group reported mixed financial results for the third quarter of 2024. The Texas-based banking institution announced a net income of $20.4 million, a decrease from the same period in 2023, and a net loss of $493.5 million in the preceding quarter. Earnings per share were reported at $0.49, down from $0.79.
The company's board declared a quarterly cash dividend of $0.38 per share. Key financial highlights include a slight expansion in net interest margin to 2.50%, an increase in loan yields to 6.07%, and a total capital ratio increase to 13.26%. The company's total loans held for investment stood at $13.9 billion, marking a slight decrease from the previous quarter.
In other recent developments, Independent Bank Group's shareholders approved a merger with SouthState Corporation. Analyst reactions to this merger have been mixed, with Piper Sandler upgrading the bank's stock to Overweight and Truist Securities downgrading it to Hold.
The bank also issued $175 million in subordinated notes under an underwriting agreement with Keefe, Bruyette & Woods, Inc., and U.S. Bancorp (BVMF:USBC34) Investments, Inc.
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