Southside Bancshares, Diboll State Bancshares to merge
Southside Bancshares and Diboll State Bancshares announced that they have signed a definitive agreement under which Diboll State Bancshares will merge into Southside Bancshares and First Bank & Trust East Texas will merge into Southside Bank. The combined company will have nearly $7B in assets. Under the terms of the agreement, Diboll State Bancshares shareholders will receive, in aggregate, 5,535,000 shares of Southside common stock and up to $25M in cash. Based on Southside Bancshares' closing stock price of $35.01 on June 12, the value of consideration to Diboll State Bancshares shareholders would be $218.8M in the aggregate. The merger has been unanimously approved by the boards of directors of both companies and is expected to close during the fourth quarter of 2017, after receipt of regulatory approvals, the approval of the shareholders of Diboll State Bancshares, Inc. and the satisfaction of other customary closing conditions. The combined entity will operate under the names Southside Bancshares, Inc. and Southside Bank. Following the closing of the merger, two Diboll State Bancshares, Inc. board members will join the Southside board, which will be expanded to 17 members. Diboll State Bancshares, Inc.'s executive management team will remain in place after the merger, assuring the continuity of local decision making. Diboll State Bancshares, Inc. executives will assume the following titles: Jay Shands - Regional President, East Texas; Trey Denman - Executive Vice President; Jim Denman - Executive Vice President. The transaction is expected to be accretive to earnings per share in the first full year after closing. Both Southside Bank and First Bank & Trust East Texas are well-capitalized banks and the pro forma company is expected to be well-capitalized following the transaction.