Independent Bank Group, Inc. Enters into Credit Agreement with U.S. Bank National Association
January 22, 2019 at 04:39 pm EST
Share
Independent Bank Group, Inc. entered into a credit agreement with U.S. Bank National Association. Pursuant to the credit agreement, the lender committed, subject to the terms and conditions set forth in the credit agreement, to make revolving loans to the company for an aggregate amount not to exceed $100 million for a period to expire on January 17, 2020, with any outstanding amounts due and payable on January 17, 2020. The credit facility will serve as a backup source of liquidity and funding, providing flexibility to support the company’s future growth. Although the credit facility is unsecured, the company has agreed not to sell, pledge or transfer any part of its right, title or interest in its subsidiary bank, Independent Bank. Interest on the outstanding balance under the credit facility is payable at a rate equal to LIBOR rate plus 175 basis points. The credit facility also bears a non-usage fee of 0.30% per annum on the unused commitment at the end of each fiscal quarter. The terms of the credit facility include customary representations, warranties, covenants and events of default, including without limitation, financial covenants requiring that the company, or the bank, as applicable, maintain a ratio of loan loss reserve to non-performing loans of not less than 100%, a return on average assets of at least equal to 0.90%, a total risk-based capital ratio equal to or greater than 10.75% for the company and 10.50% for the Bank and such capital as may be necessary to cause the Bank to be classified as a well capitalized institution under regulatory guidelines.
Independent Bank Group, Inc. is a bank holding company. The Company, through its subsidiary, Independent Bank, a Texas state-chartered bank, doing business as Independent Financial, provides a range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. Its commercial lending products include commercial real estate loans, interim construction loans, commercial loans to a diversified mix of small and midsized businesses, and loans to professionals, including medical practices. Its retail lending products include residential first and second mortgage loans and consumer installment loans, such as loans to purchase cars, boats and other recreational vehicles. It provides a full range of deposit products and services, including a variety of checking and savings accounts, debit cards, online banking, including online account opening, mobile banking, e-statements and bank-by-mail and direct deposit services.