South Plains Financial, the parent company of City Bank, sold City Bank’s wholly-owned subsidiary, Windmark Insurance Agency, to Alliant Insurance Services. The transaction closed on April 1.
“Windmark has been a terrific business for us since its inception in 1997,” Curtis Griffith, chairman and CEO of South Plains, said. “That said, we knew we were at the point where we either had to commit significant capital and resources to sustain and grow the business or look to divest this segment. We began exploring potential strategies with Windmark and Alliant last year. We believe Alliant has the capability to invest in Windmark, combined with a commitment to retain our people and customers which is very important to our management team. Overall, this is a mutually beneficial transaction for South Plains, our shareholders, Windmark and Alliant.”
“We’ve entered into this transaction in an advantageous position given our strong balance sheet, ample liquidity with no borrowings from the Federal Home Loan Bank or the Federal Reserve Bank and a deposit base which has modestly grown through the first quarter of 2023, with an estimated 17% of our deposits uninsured,” Griffith said. “Additionally, the completion of this transaction provides South Plains with the flexibility to further invest in our core business while augmenting our capital base. Given the uncertain environment, we will take our time and review a broad range of options to determine the best uses for this capital. We firmly believe that those banks with ample liquidity and strong capital levels, like South Plains, will find opportunities to grow and create shareholder value in the year ahead.”
Windmark expands Alliant’s crop and agribusiness presence in Texas and the Midwest given Windmark’s long-standing customer relationships and strong customer service. Windmark and its customers will also benefit from Alliant’s innovative insurance solutions as Alliant continues to expand its presence across the country.
Hunton Andrews Kurth acted as legal advisor to South Plains and City Bank. Morea Schwartz Bradham Friedman & Brown acted as legal advisor to Alliant.
