McKinney-based Independent Bank Group Inc., the holding company for Independent Bank, announced Aug. 22 that it will acquire Live Oak Financial Corp. and its subsidiary, Live Oak State Bank. Live Oak State Bank, a Texas state chartered bank, has one office located in the Swiss Avenue/Lakewood area east of downtown Dallas. The bank had total assets of $122.9 million, total deposits of $103.9 million and total equity capital of $13.9 million on June 30.
The acquisition has been approved by the boards of directors of both companies and is expected to close during the fourth quarter of 2013. Operational integration is anticipated to begin during the first quarter of 2014. David R. Brooks, chairman and CEO of Independent Bank Group, said the transaction is part of his company’s continuing expansion plan.
On July 19, Independent Bank Group (IBG) announced an agreement to acquire Collin Bank, a full-service commercial bank in Plano. The Collin Bank acquisition will be IBG’s first since its initial public offering on April 8, which raised $87 million to support continued growth through strategic acquisitions. That acquisition also is expected to close during the fourth quarter of 2013, with operational integration expected to begin during the first quarter of 2014.
Under the terms of the agreement with Live Oak Financial Corp., IBG will pay aggregate cash consideration of $10 million and issue about 292,646 shares of IBG common stock, resulting in an aggregate transaction value of about $20 million. The number of shares of IBG common stock can be adjusted up or down if the volume weighted average price of the IBG common stock during the 20 trading days prior to closing is 10 percent more or 10 percent less than $34.18 per share, such that the maximum value of the IBG common stock at closing would be about $11 million and the minimum value would be about $9 million. The aggregate cash consideration also can be adjusted downward if the tangible book value of Live Oak Financial Corp. is less than $13 million at closing. IBG anticipates that the acquisition will be accretive to earnings per share immediately and slightly dilutive to tangible book value at closing with the dilution earned back in less than two years.
IBG was advised in this transaction by Sandler + O’Neill Partners LP as financial adviser and Haynie Rake Repass & Lowry PC as legal counsel. Live Oak Financial Corp. was advised by Sheshunoff & Co Investment Banking LP as financial adviser and Hunton & Williams LLP as legal counsel. IBG operates 29 banking offices in 26 communities in two market regions in the Dallas-Fort Worth area and the greater Austin area. As of June 30, IBG had total assets of $1.906 billion, total loans of $1.512 billion and total deposits of $1.485 billion. IBG trades on the Nasdaq under the symbol IBTX.
Texas Mutual pays dividends Texas Mutual Insurance Co., the state’s leading provider of workers’ compensation, recently began distributing $175 million in dividends among about 40,000 policyholders. As part of this year’s dividends, Texas Mutual will distribute $8,661,649 in dividends to 1,622 Tarrant County policyholders. Based on each company’s premium size, loss ratio and history with Texas Mutual, dividends reward loyal policyholders who share the company’s commitment to preventing workplace accidents and helping injured workers get well and back on the job. This is the 15th consecutive year Texas Mutual has paid dividends, bringing the total to almost $1.4 billion.
Ex-Im Bank funds support U.S. energy jobs The independent federal agency Export-Import Bank of the United States (Ex-Im Bank) will finance $1.5 billion in a pair of transactions to support the export of U.S. goods and services to Petroleos Mexicanos (Pemex), Mexico’s national oil and gas company. For the second time, Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the transactions. If the funding cost is prohibitive, Pemex may exercise an option to seek Ex-Im Bank direct loans priced at Commercial Interest Reference Rates. Ex-Im Bank’s financing will support about 6,800 U.S. jobs across about 10 states, according to bank estimates derived from data and methodology from the Departments of Commerce and Labor. The procurement includes oil and gas field drilling services, drilling platforms, equipment rentals, pumps, well-completion services, associated spare parts and chemicals, geophysical services and safety equipment. Since 1998, Ex-Im Bank has approved about $13.5 billion in financing to support Pemex’s activities. For more information, visit www.exim.gov.
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