Simmons expanding in Texas with Spirit acquisition

Simmons First in Pine Bluff, Ark., has agreed to buy Spirit of Texas Bancshares in Conroe.

The $23.2 billion-asset Simmons said in a press release Friday that it will pay $581 million in cash and stock for the $3.2 billion-asset Spirit. The deal is expected to close in the second quarter.

Spirit has 37 branches, $2.3 billion of loans and $2.7 billion of deposits. 

“Spirit is a highly regarded, high-performing bank with whom we share a common philosophy – providing outstanding customer service and developing deep and long-lasting relationships with the clients and communities that we serve and where we live,” George Makris Jr., Simmons’ chairman and CEO. 

“Strengthening our Texas franchise has been a strategic priority and to partner with Spirit not only enhances our current footprint, but also establishes a platform for growth in Houston, Austin, San Antonio and College Station,” Makris added. “These markets have been among the fastest growing in the nation in terms of population and economic activity and projections call for this trend to continue.”

Dean Bass, Spirit’s chairman and CEO, will join Simmons board. 

Simmons in October acquired Landmark Community Bank and TriumphBancshares. 

The deal is expected to be 9.8% accretive to Simmons’ 2023 earnings per share. Simmons said it expects to cut about 35% of Spirit’s annual noninterest expenses. 

Keefe, Bruyette & Woods and Covington & Burling advised Simmons. Stephens and Hunton Andrews Kurth.