Unconventional Capital Wisdom
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Southside Bancshares And OmniAmerican Bancorp Merger Insights

There are times when the market's knee jerk reaction is justified but other times when we scratch our heads in bewilderment. This brings us to a recently announced merger of OmniAmerican Bancorp (NASDAQ:OABC) into Southside Bancshares (NASDAQ:SBSI). We originally postulated that OmniAmerican's banking operations were underperforming although had very attractive branch locations in one of the fastest growing areas in the US, the Dallas/Fort Worth metro area, and would be an attractive buyout target. Lucky for us, our thesis worked out in less than two months, but at a lower price than we estimated. Other shareholders are in agreement that the price of the merger is a bit low, but we want to focus on the...

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