Texas Capital Bancshares and Independent Bank Group said on Monday they would combine in a transaction structured as a merger of equals, creating the second-largest lender by assets headquartered in the Lone Star state.
US regional banks have been coming together as they seek scale to reduce costs and share the burden of investing in new technology. The return of interest-rate reductions in 2019 also puts pressure on banks’ profitability, as they can’t charge as much to lend money.
The combined company will have about $48 billion in assets and $39 billion in deposits, with legacy Texas Capital shareholders controlling 55% of the new bank, according to a joint statement.
Full Content: Reuters
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