Carlile was one of several investments pursued by Stone Point to benefit from the substantial cost savings and earning accretion generated by consolidation in the commercial banking industry.
During the period of financial distress and depressed valuations surrounding the 2008-2009 Financial Crisis in the United States, Stone Point proactively identified several geographic regions in which bank consolidation was likely to become particularly active and profitable for acquirers. One of those regions was Texas and the broader southwest. After meeting with several dozen banks and management teams based in the area, Stone Point chose to partner with Carlile Founder and CEO Tom Nichols to lead a growth capital investment in the established Carlile holding company. Tom and his management team had a long history of successfully recapitalizing, managing and profitably selling banks in the Texas market.
After committing to an investment in Carlile, Stone Point assisted Tom Nichols in raising a total of over $325 million of equity capital to support Carlile’s consolidation driven business plan. Over the subsequent six years, Carlile deployed investors’ capital through eight bank and branch acquisitions, to ultimately develop a franchise with $2.2 billion of assets and 42 branch locations. After fully consolidating and optimizing the earnings of the acquired operations, Carlile decided to put itself up for sale in order to capitalize on the company’s increased net income. This ultimately led to an acquisition of Carlile by Independent Bank, a larger publicly traded bank consolidator in Texas. In order to continue to benefit from the earnings accretion that Independent Bank would likely realize from the consolidation of Carlile, Stone Point and Tom Nichols chose to join the Independent Bank board and accept the acquirer’s common stock as merger consideration.