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IBTX - Independent Bank Inc News Story

$74.52 -0.6  -0.8%

Last Trade - 22/04/21

Mid Cap
Market Cap £2.33bn
Enterprise Value £2.41bn
Revenue £431.8m
Position in Universe 1791st / 6852

BUZZ-Texas Capital drops as merger with rival Independent Bank Group terminated

Tue 26th May, 2020 5:53pm
** Texas Capital Bancshares Inc  TCBI.O  shares down 5.1% at
$27.06 as merger with Independent Bank Group  IBTX.O  called off
    ** Shares of IBTX rise 12.1% to over 2-mth high of $35
    ** Regional banks mutually agree to terminate their merger
agreement "due to unprecedented impact of the COVID-19
pandemic"; neither party will pay any termination fee*:nGNX2MmSB5*:nACStzV5xa
    ** On Dec 9, the banks agreed to an all-stock merger of
equals with market value of ~$5.5 bln*:nL4N28J2XT
    ** Also on Tues, TCBI says CEO C. Keith Cargill steps down
effective immediately; board chair Larry Helm will serve as CEO
on interim basis*:nGNX8TMpfs
    ** RBC analyst Jon Arfstrom says in flash note he's not
"overly" surprised by announcement, highlighting that the stocks
were trading at spread recently suggesting merger was less
likely to close
    ** Arfstrom says for TCBI, similar to peer outlook, views
near term operating environment challenging "given the COVID-19
headwinds on credit as well as the depressed rate environment"
    ** Energy-exposed regional bank stocks plummeted in Mar as
oil prices and interest rates plunged amid mounting coronavirus
    ** With moves on Tues, TCBI has lost ~57% since Dec 9 merger
announcement, while IBTX has fallen ~43% over same time frame

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
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