Independent Bank Group (IBTX) in McKinney, Texas, has agreed to buy Live Oak Financial Corp. in Dallas.
Independent will pay $20 million for the $123 million-asset Live Oak, the companies announced late Thursday. Half of the consideration will involve cash and the rest will consist of roughly 293,000 shares of common stock. Independent said it expected the acquisition to immediately increase earnings per share; it should take less than two years for the company to earn back the dilution associated with the deal.
"We are pleased to announce our second transaction in 2013, continuing our planned expansion through the acquisition of quality banks that complement our existing locations," David Brooks, Independents chairman and chief executive, said in a press release. "The acquisition of Live Oak State Bank adds to our presence in the Dallas market."
The $1.9 billion-asset Independent has been looking for acquisitions as part of a strategy to reach $5 billion in assets in the next five years, Brooks told American Banker in May. In July, the company agreed to pay about $29.1 million for Collin Bank in Plano, Texas.
Live Oak has one branch in Dallas and $104 million in deposits. The deal is expected to close in the fourth quarter.
Independent was advised by Sandler and ONeill and Haynie Rake Repass & Lowry. Live Oak was advised by Sheshunoff and Hunton & Williams.