The biggest U.S. bank acquisition signed in 2024 just became the first to close in 2025.
SouthState Corp. dotted the i's and crossed the t's on its $2 billion, all-stock purchase of Independent Bank Group, completing the merger on Jan. 1. The deal, which was first announced last May, grows the Florida-based acquirer's assets by nearly $20 billion and expands its footprint in Texas and Colorado.
Merger and acquisition conversations between the banks first started about 12 months ago, when two longtime friends -- Independent Chairman and CEO David Brooks and SouthState CEO John Corbett -- met for coffee in New York City. The deal passed a major milestone last month when it was approved by the Federal Reserve Board and Office of the Comptroller of the Currency.
Corbett said in a prepared statement Thursday that it had been a "pleasure" working with Independent.
"Together, we will continue building our company with an entrepreneurial business model in the fastest growing markets in the country," Corbett said.
With the completion of the deal, Brooks, along with two other board members from Texas-based Independent, joined SouthState's roster of directors. Brooks, who will stay on at the Florida company for at least two years, will also receive a lump sum payment of nearly $18 million in connection with the merger, per the agreement.
Several other executives from Independent will also join SouthState to help integrate or lead certain business lines.
To pay for Independent, SouthState issued 24.9 million shares at $80.85 each -- the closing price of the stock when the deal was hatched last May.
SouthState's stock price was down 2.36% Thursday, trading at $97.13. The bank's share value has gone up about 17% since the deal was announced. Investors from Independent now own about one-quarter of SouthState's common stock.
Independent had previously been active as a bank buyer, but it decided to sell itself when it seemed like there wasn't enough runway to grow safely without an infrastructure overhaul, Brooks said in an interview last May.
"Our company has always been focused on how to create scale, and do it in a way that creates a lot of shareholder value that we can't get on our own," Brooks said. "If I could have done it with my platform, I would have done it. But we didn't see the right opportunities."
The acquisition pushes SouthState to $65 billion of assets, crossing the $50 billion threshold that increases regulatory requirements. The company has been investing in technology and risk management capabilities for the last four years to prepare for the heightened standards.