Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) (the "Company" or "Spirit"), the holding company for Spirit of Texas Bank (the "Bank"), today announced that the Bank has entered into a branch purchase and assumption agreement with Simmons Bank ("Simmons"), pursuant to which the Bank will acquire 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.
Dean O. Bass, Spirit's Chairman and Chief Executive Officer, stated, "We are very pleased to announce our eleventh acquisition in Texas, and our fourth transaction since becoming a public company in May 2018. 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, Mr. Bass announced that Clay Jett, Simmons' regional chairman over these five locations, will join Spirit in a similar capacity. Mr. Bass further remarked, "We are excited to have Clay join the Spirit team. Clay has an extensive background in commercial banking in these markets and will provide the leadership we need in growing our market presence."
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. "We have the greatest respect for Dean and his team at Spirit, and we are confident this transaction will be very positive for all stakeholders," said George Makris, Jr., Chairman and Chief Executive Officer of Simmons First National Corporation.
Stephens Inc. served as financial advisor to Simmons.