The acquired entity operates as a full service commercial bank and had total assets of $122.9m, total deposits of $103.9m, and total equity capital of $13.9m as at 30 June 2013.
Independent Bank Group chairman and CEO David Brooks said the deal is part of its planned expansion through the acquisition of quality banks that complement its existing locations and the acquisition of the bank boosts its presence in the Dallas market.
Live Oak Financial president Carl Schieffer commented that the merger of both firms will enable the bank to continue to offer improved services to its customers.
As per the agreement, IBG will reimburse aggregate $10m cash and issue nearly 292,646 shares of IBG common stock, resulting in a combined transaction of about $20m.
Further, the combined cash consideration can also be adjusted downward if the tangible book value of Live Oak Financial is less than $13m at closing.
The merger, which has already been okayed by the boards of directors of both firms, is likely to conclude in the fourth quarter of 2013, pending receipt of regulatory approvals as well as satisfying customary closing conditions.
Sandler + O’Neill Partners served as financial advisor, while Haynie Rake Repass & Lowry acted as legal counsel for Independent Bank Group. Sheshunoff & Co Investment Banking and Hunton & Williams served as financial advisor and legal counsel for Live Oak Financial, respectively.
