 has announced that it sold its 100% owned subsidiary, Windmark Insurance Agency Inc. to Alliant Insurance Services Inc. The transaction was mutually beneficial both to South Plains and its shareholders as well as to Alliant. South Plains now has the flexibility to invest in their core business. Windmark serves customers with crop insurance products in three states and its acquisition by Alliant provide them with more reliable insurance solutions.){kind=link}
South Plains Financial, Inc. (NASDAQ: SPFI) is the parent company of Texas based City Bank. The company recently announced that it has sold City Bank’s wholly-owned subsidiary, Windmark Insurance Agency, Inc. to Alliant Insurance Services, Inc. The sale of Windmark closed on April 1, 2023 and was a mutually beneficial transaction for both South Plains, it’s shareholders, Windmark, and Alliant.
Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, recognized that South Plains either had to commit significant capital and resources to Windmark or look to divest the segment. With this transaction, South Plains is provided with the flexibility to further invest in their core business and augment their capital base. As the transaction was carried out while South Plains held a strong balance sheet, ample liquidity, and a deposit base that has modestly grown, the company believes that their capital and liquidity will help them find opportunities to grow and create shareholder value in the year ahead.
Windmark provides customers with a variety of crop insurance products in Texas, Nebraska, and Colorado and by acting as the general agency for independent agents in 17 states. With Alliant’s acquisition, Windmark and their customers are provided with additional innovative insurance solutions and the assurance of being supported by a commitment to retain their current people and customers.
Additionally, the legal advisors for this sale included Hunton Andrews Kurth LLP on the behalf of South Plains and City Bank, and Morea Schwartz Bradham Friedman & Brown LLP on the behalf of Alliant. More information on the transaction can be found under Form 8-K for South Plains Financial, Inc. on the Securities and Exchange Commission’s website sec.gov.