South Plains Financial in Lubbock, Texas, has agreed to buy West Texas State Bank in Odessa.
The $2.7 billion-asset South Plains said in a press release Thursday that it will pay $76.1 million in cash for the $429 million-asset West Texas State. The deal is expected to close in the fourth quarter.
South Plains will have 26 branches, 13 mortgage production offices, $2.1 billion in loans and $2.7 billion in deposits when the deal closes. The deal also allows the company to enter the Midland and Odessa markets in Texas.
The deal comes two months after South Plains conducted an initial public offering.
"The merger will leverage our existing infrastructure, which will provide scale benefits as we strive to deliver value for all of our stakeholders," Curtis Griffith, the company's chairman and CEO, said in the release.
Keefe, Bruyette & Woods and Hunton Andrews Kurth advised South Plains. Piper Jaffray and Alston & Bird advised West Texas State.
