On Dec, 8, 2019, BancAffiliated Inc., the sole shareholder of Affiliated Bank, National Association, and Odessa SouthWest Bancshares Inc., the sole shareholder of SouthWest Bank, signed an agreement and plan of merger pursuant to which BancAffiliated will acquire SouthWest Bank from Odessa SouthWest in a stock and cash transaction. Affiliated Bank and SouthWest Bank will merge with SouthWest Bank being the surviving charter. The combined franchise will have approximately $1.4 billion in assets, $1.1 billion in loans and $1.2 billion in deposits based on the companies’ balance sheets as of Sept. 30, 2019.
“We are excited about combining two banks whose values and cultures are so aligned,” said Affiliated Bank CEO, Garry J. Graham. “We look forward to the endless opportunities that this merger presents for our customers, communities, team members and shareholders. Together we will not only expand our footprint in Texas and our lending capacity but also provide enhanced technology, products and services to better serve our valued customers.”
The merger brings together two strong banks that value an engaged and energized team, with a focus on customers and serving the community.
“You can count on seeing the same familiar faces providing the highest level of service,” said SouthWest Bank CEO, Dewey Bryant. “SouthWest Bank and Affiliated Bank have many similarities, including our long histories of supporting our respective communities and providing a banking environment where you can do business with people you trust, and we look forward to continuing that legacy.”
“We are thrilled and could not have asked for a better organization to partner with,” said BancAffiliated Chairman Sam L. Susser. “We remain deeply committed to our customers and involvement in local, civic and non-profit efforts in all of our communities. Together, we intend to build the best bank in Texas for the most talented banking professionals and the outstanding clients that they attract.”
The transaction has been approved by the Board of Directors of both companies and is currently expected to close during the second quarter of 2020. The transaction is subject to customary conditions, including shareholder and regulatory approvals.
Stephens Inc. served as financial advisor to BancAffiliated and rendered a Fairness Opinion to the Board of Directors. Alston & Bird LLP served as BancAffiliated’s legal counsel. Commerce Street Capital served as financial advisor to Odessa SouthWest and rendered a Fairness Opinion to the Board of Directors. Thompson & Knight LLP served as Odessa SouthWest’s legal counsel.
Founded in 1959, Affiliated Bank has approximately $950 million in total assets and offers a full suite of commercial banking products and services operating out of its Arlington headquarters and full-service branches in Bedford, Garland and Round Rock. Affiliated Bank is planning to open two Fort Worth locations in the near future. The bank also has seven mortgage locations Arlington, Brownwood, Dallas, Fort Worth, Frisco, Round Rock and Waco and a dedicated SBA office in Arlington.
With headquarters in Odessa, SouthWest Bank officially opened for business on Jan. 29, 1999. The Bank has six full-service locations in Odessa, Midland and Lubbock and offers a full suite of products, including commercial banking services, mortgage, factoring and SBA loans, as well as trust services. SouthWest Bank has repeatedly named one of the Best Companies to Work for in Texas. As of Sept. 30, 2019, SouthWest Bank reported total assets of $448 million.