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Independent Bank Group to soar above $10B in assets following Guaranty buy

McKinney, Texas-based Independent Bank Group Inc.'s largest acquisition to date would send the company well north of the important $10 billion regulatory asset threshold.

Independent's newly announced $1.02 billion deal for Denver-based Guaranty Bancorp is expected to close by the end of this year. On a pro forma basis, the company's assets will have grown by more than 50% since the beginning of 2018, to $13.29 billion.

This surge in growth was not entirely unexpected. Following Independent's announcement last November that it would buy Houston-based Integrity Bancshares Inc., speculation grew that the company would announce a large deal to hurdle over $10 billion in assets by a wide margin. Breaching the $10 billion mark means an increase in regulations, as well as decreased debit card interchange revenue courtesy of the Durbin amendment.

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Once the Guaranty and Integrity deals close, Independent Bank will have completed eight whole-bank deals since going public in April 2013.

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Investors in Independent Bank have been richly rewarded since the company completed an initial public offering in April 2013. Since its IPO, Independent's shares have returned 198.0% as of May 24, compared to a 116.9% return for the SNL U.S. Bank and Thrift Index and a 93.3% return for the S&P 500. Interestingly, Guaranty has done even better, returning 259.3% over the same time frame.

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