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Note 22 - Subsequent Events
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Subsequent Events [Text Block]
NOTE
22:
SUBSEQUENT EVENTS
 
On
October 19, 2017,
the Company completed its mergers with Southwest Bancorp, Inc. (“OKSB”) and First Texas BHC, Inc. (“First Texas”) pursuant to the terms of the Agreements and Plan of Mergers, dated
December 14, 2016
and
January 23, 2017,
respectively. The Company was the surviving corporation in both mergers, which are referred to individually as the “OKSB Merger” and the “First Texas Merger”, and collectively as the “mergers.” The mergers were described in the Joint Proxy Statement/Prospectus of the Company, OKSB and First Texas filed with the SEC on
September 12, 2017.
As a result of the mergers, the Company expanded its reach into
three
new banking markets and now has approximately
$14.7
billion in assets and approximately
$10.5
billion and
$11.2
billion in loans and deposits, respectively.
 
In the OKSB Merger, each outstanding share of OKSB common stock was cancelled and converted into the right to receive
0.3903
shares of the Company’s common stock and
$5.11
in cash. The Company issued
7,250,000
shares of its common stock and paid
$95,000,000
in cash to effect the OKSB Merger. In the First Texas Merger, each outstanding share of First Texas common stock was cancelled and converted into the right to receive
0.8263
shares of the Company’s common stock and
$6.60
in cash. The Company issued
6,500,000
shares of its common stock and paid
$70,000,000
in cash to effect the First Texas Merger. Additionally, upon consummation of the mergers, the Company assumed subordinated debt issued by OKSB and First Texas in an aggregate principal amount of
$76.7
million. The mergers were approved by stockholders of the Company on
October 18, 2017
while the stockholders of OKSB and First Texas approved the mergers on
October 19, 2017.
 
Due to the timing of the mergers and the number of assets and liabilities assumed, the Company is continuing to determine their preliminary fair values and the purchase price allocation.  The Company expects to finalize the analysis of the acquired assets and liabilities over the next few months and within
one
year of the mergers. We will record the mergers using the acquisition method of accounting and will recognize the assets acquired and liabilities assumed at their fair values as of the date of acquisition. The results of the mergers will be included in our consolidated operating results beginning on the acquisition date.
 
On
October 6, 2017,
the Company entered into a Revolving Credit Agreement (the “Credit Agreement”) with U.S. Bank National Association and executed an unsecured Revolving Credit Note (the “Note”) pursuant to which the Company
may
borrow, prepay and re-borrow up to
$75
million for purposes of financing distributions, financing certain acquisitions, and working capital purposes. The Credit Agreement contains customary representations, warranties, and covenants of the Company, including, among other things, covenants that impose various financial ratio requirements. The Company will primarily use the proceeds of the revolving credit loans under the Credit Agreement to repay the subordinated debt assumed with the mergers as previously discussed.
 
The principal amounts borrowed under the Credit Agreement will bear interest at a variable rate equal to the applicable
one
-month LIBOR rate plus
1.50%.
The amount of interest accruing under the Note shall be computed on an actual day,
360
-day year basis. The line of credit available to the Company under the Credit Agreement expires on
October 5, 2018,
at which time all amounts borrowed, together with applicable interest, fees, and other amounts owed by the Company shall be due and payable.