Texas Capital Bancshares and Independent Bank Group to merge

Texas Capital Bancshares Inc., the parent company of Texas Capital Bank, and Independent Bank Group Inc., the holding company for Independent Bank, recently announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger of equals with a total market value of approximately $5.5 billion. The merger is expected to close in mid-2020.

The name of the combined holding company will be Independent Bank Group and the combined bank will be Texas Capital. The corporate headquarters of the combined company will be in McKinney.

Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, Texas Capital shareholders will receive 1.0311 shares of Independent Bank Group for each Texas Capital share they own. Former Texas Capital shareholders will own 55% and Independent Bank Group shareholders will own 45% of the combined company. Upon consummation of the transaction, the combined company expects to offer an annualized dividend on its common stock of $1 per share, subject to approval by the board of directors.

“It has been an honor to build Texas Capital into one of the best business and private wealth banks in the U.S,” said C. Keith Cargill, Texas Capital president and CEO. “Independent Bank Group is an outstanding complement to Texas Capital with its enviable commercial branch network, small business market leadership and solid deposit funding model in combination with our strong corporate banking practice and powerful technology and compliance infrastructure.”

David Brooks will serve as chairman, president and CEO of the combined company. Cargill will serve as special advisor to the chairman, president and CEO and will continue to assist the franchise in talent and client retention in addition to advising on key strategic initiatives.