The merger was originally announced in December. Texas Capital Bank and Independent Bank said the two companies would merge into a "super regional" bank headquartered out of McKinney. The $5.5 billion merger was expected to be completed in mid-2020.
However, the companies will not be moving forward with this merger, citing the “extreme and unpredictable economic conditions resulting from the global health crisis caused by the coronavirus (COVID-19) pandemic,” per the May 26 news release.
“While both companies believed in the benefits of the proposed transaction when it was announced, we mutually concluded after careful consideration that, given the significant uncertainty caused by the COVID-19 pandemic and the resulting economic and market environment, it would not be prudent to continue to pursue the combination and integration of our companies at this time,” said David R. Brooks, Independent Bank Group Chair and CEO, in the release. “I am confident this is the right decision for our company and our customers, employees, shareholders and other stakeholders.”
Neither party will pay any termination fee as a result of the mutual decision to cancel the merger agreement, the release said.
Independent Bank built its 150,000-square-foot, six-story headquarters in mid-2019 at 7300 Henneman Way, McKinney. The company had also recently announced a name change from Independent Bank to Independent Financial, as previously reported by Community Impact Newspaper. McKinney is also home to three Independent Bank locations.
Independent Bank currently serves cities across Texas and Colorado.
Texas Capital Bank currently headquarters out of Dallas and has locations across Texas and in New York City.