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OmniAmerican agrees to sale to Southside Bancshares

  • In another community bank deal, OmniAmerican Bancorp (OABC +9.2%) will merge into Southside Bancshares (SBSI -8.6%) to create the 9th largest lender by deposits headquartered in Texas.
  • OABC shareholders will receive 0.4459 shares of Southside common stock, plus $13.125 in cash for each share of OABC they own. Based on Southside's closing price of $30.46 (before the deal was announced), this values each OmniAmerican share at $26.71, or a total value of $307M.
  • Southside expects the deal to be accretive to earnings in the first full year after closing.
  • Source: Press Release
  • Kudos to SA Pro's Unconventional Capital Wisdom who seven weeks ago suggested an overcapitalized OABC would make an attractive takeover target. Today's offer, though, is well-below the 1.5x-1.6x book value, or $31-$33 per share the author posited as a possible buyout price.
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