Two East Texas banks announced a planned merger Monday afternoon that will be worth an estimated $7 billion.
Southside Bank's parent company, Southside Bancshares, Inc., and First Bank & Trust East Texas' holding company, Diboll State Bancshares, Inc., are merging after announcing their signed agreement on Monday. The banks will be known as Southside Bank.
The new merged company will be worth around $7 billion.
The agreement stipulates that shareholders of Diboll State Bancshares, Inc. will all-together receive up to $25 million cash and 5,535,000 shares of Southside common stock.
"This merger is an excellent growth opportunity to further expand our footprint in the dynamic East Texas Market, complementing our presence in North Texas and Austin," said Lee Gibson, President and CEO of Southside Bank and Southside Bancshares, Inc.
Gibson also said the merging companies "share many of the same values, making this merger a natural fit from a geographic, cultural, financial and strategic standpoint."
Southside Bank currently has 60 banking centers in Texas and operates a network of 70 ATMs. Click here for more information about Southside Bank.
First Bank & Trust East Texas was founded in 1953 in Diboll, Texas. It operates 17 branches in East Texas and as of March 31, 2017, had $1 billion in assets. Click here for more information about First Bank & Trust.
The merger is expected to close during the fourth quarter of this year.