Conroe-based Spirit of Texas Bancshares Inc. (NASDAQ:STXB), the holding company for Spirit of Texas Bank, on Dec. 23 entered into a branch purchase and assumption agreement with Simmons Bank, acquiring four Simmons branch offices and one Simmons mortgage loan office located in Austin, San Antonio and Tilden, Texas, as well as certain of their deposits, loans and other assets.
The addition of these five locations will increase Spirit’s number of locations to 41 across the State of Texas and establish a physical presence in two of the key Texas growth markets. Completion of the transaction is expected in the first quarter of 2020 and is subject to certain closing conditions, including customary regulatory approvals.
“We are very pleased to announce our eleventh acquisition in Texas, and our fourth transaction since becoming a public company in May 2018,” said Dean O. Bass, Spirit’s chairman and CEO. “These Simmons offices will expand our South Texas presence into the dynamic Austin market and strengthen our presence in the San Antonio-New Braunfels market, will provide a strong loan portfolio and deposit base, and will complement the Spirit franchise. Moreover, we are delighted to welcome the Simmons bankers and dedicated employees to the Spirit of Texas family, as they continue providing exceptional products and customer service to the markets they serve.”
Additionally, Bass announced that Clay Jett, Simmons’ regional chairman over these five locations, will join Spirit in a similar capacity.
As of September 30, 2019, the combined deposit and loan balances of the five Simmons offices (excluding certain loans and deposits not subject to the transaction) were approximately $160 million and $272 million, respectively. Simmons is a subsidiary of Simmons First National Corporation (NASDAQ:SFNC), an Arkansas-based financial holding company.
Simmons and Spirit both have locations in the Dallas-Fort Worth area.
Stephens Inc. served as financial advisor to Simmons.