Texas Capital Bank N.A., and its parent company Texas Capital Bancshares Inc. (NASDAQ: TCBI) announced May 26 that C. Keith Cargill has stepped down as president and chief executive officer and a member of the board of directors of both companies, effective immediately.
Larry L. Helm, who has served as chairman of the Texas Capital Bancshares Board since 2012, will serve as executive chair, CEO and president of both companies until a permanent successor has been named.
The Dallas-based company said Cargill will serve as vice chairman of both companies through the end of 2020 to help support a smooth transition. In addition, James H. Browning, an independent director and member of the Texas Capital Bancshares Board since 2009, has been appointed lead director.
The company also announced that Texas Capital Bancshares and Independent Bank Group Inc. (NASDAQ: IBTX), the holding company for Independent Bank, have mutually agreed to terminate the merger agreement, previously announced Dec. 9, 2019, under which the companies had agreed to combine in an all-stock merger of equals.
Texas Capital Bancshares said the termination was approved by both companies’ boards of directors “after careful consideration and given the significant impact of the COVID-19 pandemic on global markets and on the companies’ ability to fully realize the benefits they expected to achieve through the merger.”
“Due to the unprecedented impact of the COVID-19 pandemic, both companies’ boards of directors believe it is in the best interests of our employees, clients and all of our shareholders to focus on managing our business during this time,” Helm said.
The two North Texas banks had announced the merger in early December, which would have created a bank with $48 billion in assets. Both banks have locations in Fort Worth. Independent Bank Group is based in McKinney.
Texas Capital Bancshares’ board intends to conduct a search process to identify a permanent CEO and continues to be engaged with Egon Zehnder, a leading executive search firm, as part of the Board’s robust and ongoing succession planning process.
“As part of our focus on succession planning, the board believes that it is the right time for a transition in leadership as the company executes a strategy to achieve enhanced operational focus and profitable, long-term value creation,” Elysia Ragusa, chair of the board’s Governance and Nominating Committee, said.
“After much deliberation, the board and I have decided that now is the right time for me to step down as president and CEO of Texas Capital Bancshares and Texas Capital Bank,” Cargill said in the announcement. “ It has been one of the greatest honors of my life to be one of the founders of this great company and serve as CEO alongside our exceptional management team and our talented colleagues.
- FWBP Staff