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Subsequent Events
9 Months Ended
Sep. 30, 2015
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

19.  SUBSEQUENT EVENTS

Patriot Bancshares, Inc., - On October 1, 2015, the Company completed the previously announced merger of Patriot Bancshares, Inc. (“Patriot”) with and into the Company and the merger of Patriot’s wholly-owned subsidiary, Patriot Bank with and into the Bank (collectively, the “Patriot acquisition”). Patriot, headquartered in Houston, TX, operated six locations in Houston, two in Dallas and one in Fannin County, Texas.  As of September 30, 2015, Patriot, on a consolidated basis, reported total assets of $1.4 billion, total loans of $1.1 billion, total deposits of $1.1 billion and total shareholders’ equity of $125.2 million. Under the terms of the merger agreement, we issued 10.4 million shares of the Company’s common stock for all outstanding shares of Patriot common stock, including the converted Series D and Series F preferred stock.  In addition, Patriot’s $27.3 million Series B and Series C preferred stock were redeemed in connection with the closing.  Consistent with the Company’s strategy, the primary reasons for the merger were to enhance market share in Houston and Dallas, and improve profitability through cost savings and revenue synergies.

The initial accounting for the business combination has not been completed due to the short period of time since the closing.  The Company is in the process of determining the acquisition date fair values of loans, goodwill, core deposit intangible, deferred tax assets and deposits.  None of the goodwill recognized is expected to be deductible for income tax purposes.

The Company has incurred expenses related to the Patriot acquisition of $808 thousand for the three months ended September 30, 2015, and $2.7 million for the nine months ended September 30, 2015, which included noninterest expenses of professional and regulatory fees and salaries and employee benefits in the consolidated statements of income.

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