Southside Bank and OmniAmerican Bank have announced the signing of an agreement to merge. According to the agreement, OmniAmerican will be absorbed into Southside, leaving the combined bank with assets of nearly $5 billion and making it one of the ten largest banks in Texas. The boards of both banks have approved the merger and are anticipating completion of the transaction before the end of the year after approval of shareholders and regulatory authorities.
The president and CEO of Southside said that the merger is an excellent strategic fit that will result in a well-capitalized bank with a major presence in the east and central portions of Texas plus Fort Worth. According to the president and CEO of OmniAmerican, the two banks operate under similar philosophies with clean balance sheets and seasoned management teams, and the merger will allow customers to be served with a greater convenience, additional lending capacity and an expanded product line. OmniAmerican's executive management team is expected to remain in place following the merger.
According to the agreement, OmniAmerican shareholders will trade their outstanding shares of common stock for Southside common stock shares plus a cash payment that, based on April 28 closing prices, would be worth about $26.71 per share. The total completed transaction would be valued at about $307 million.
Complex business transactions often involve the services of an attorney with experience in business law. Although mergers and acquisitions represent some of the most complex transactions, other business and legal decisions have the potential to improve operations and the company's bottom line. Business attorneys can provide information on the differences in organizational structures and give advice on whether a new company or subsidiary should be a corporation, LLC or partnership.
Source: KLTV, "Southside Bank announces merger with Fort Worth bank", Marshall Stephens, April 29, 2014