Affiliated Bank and Southwest Bank Announce Mutual Termination of Merger Agreement
BancAffiliated, Inc. (“BancAffiliated”), the sole shareholder of Affiliated Bank, National Association (“Affiliated Bank”), and Odessa SouthWest Bancshares, Inc. (“Odessa SouthWest”), the sole shareholder of SouthWest Bank, have mutually agreed to terminate their merger agreement, previously announced on December 9, 2019. The companies have entered into a Mutual Termination Agreement which was approved by the Boards of Directors of both companies.
The termination is in response to the extreme uncertainty resulting from the global health crisis caused by the COVID-19 pandemic, and its impact on the companies’ ability to fully realize the benefits they expected to achieve through the merger. BancAffiliated and Odessa SouthWest jointly determined it is in the best interests of employees, clients and shareholders to terminate the merger agreement and to focus on managing their separate businesses at this time.
Sam L. Susser, BancAffiliated Chairman, said, “We continue to have the utmost respect, admiration and trust for the entire Odessa SouthWest team, and could not have asked for a better partner. However, the COVID-19 pandemic has created so much economic uncertainty and a challenged business environment that proceeding with the combination and integration of our companies at this time is not a prudent course of action. Both of our banks will continue to focus on providing exceptional service to our clients and protecting the health and safety of our employees through these challenging times.”
Richard “Buz” Browning, Odessa SouthWest Bancshares Chairman, added, “Although we are all disappointed by having to abandon the merger with the Affiliated Bank group, we have developed a strong association with them which we hope will continue into the future.”