Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On July 31, 2017, the Company completed its acquisition of Sabadell United Bank, N.A. ("Sabadell United") from Banco de Sabadell, S.A. ("Banco Sabadell"). Under the terms of the Stock Purchase Agreement, Banco Sabadell received $796 million in cash and approximately 2.6 million shares of the Company's common stock for total consideration of approximately $1.0 billion based on the Company's closing stock price on July 31, 2017. The cash consideration was financed through two public common stock offerings completed on December 7, 2016, and March 7, 2017. In connection with the closing of the acquisition, the Company entered into a Registration Rights Agreement, dated as of July 31, 2017, pursuant to which the Company has agreed to provide Banco Sabadell with certain customary registration rights with respect to the shares of IBKC common stock issued as consideration for the acquisition. The Registration Rights Agreement contains customary terms and conditions, including certain customary indemnification obligations. The registration obligations will terminate upon the earliest of six months after the completion of the acquisition, the sale of all registrable shares pursuant to an effective registration statement or the sale or transfer of all registrable shares to any person who is not an affiliate of Banco Sabadell.

At June 30, 2017, Sabadell United had total assets of $5.7 billion, gross loans of $4.1 billion, and total deposits of $4.4 billion. Upon completion of the acquisition, the Company had approximately $28 billion in total assets. The branch and operating systems conversions associated with the acquisition are expected to be completed in October 2017. Due to the timing of the Sabadell United acquisition, the Company is continuing its evaluation of the fair value adjustments necessary to adjust the acquired assets and assumed liabilities to estimated fair value, as well as the related intangible assets associated with the transaction. The acquired assets and assumed liabilities, fair value adjustments, and required supplemental pro forma information will be disclosed in subsequent filings.