TCBI - With A Much Different Risk/Reward Outlook Independent And Texas Capital Call Off Their Merger
The COVID-19 outbreak has created some significant disruptions for the banking sector, with almost every bank building reserves in anticipation of higher loan losses from the ensuing recessions. Those disruptions have also led to the termination of the proposed merger of equals between Independent Bank (IBTX) and Texas Capital Bancshares (TCBI), with the two parties agreeing to go their separate ways without any termination fees or other commitments.
Looking ahead, I can see both banks as candidates to be involved in future M&A, though the challenges TCBI is currently facing (including