Item 1.02. Termination of a Material Definitive Agreement.
The information set forth in Item 2.01 is incorporated herein by reference.
OnSeptember 30, 2022 , Allegiance terminated its Credit Agreement, dated as ofDecember 22, 2014 (as amended, restated, supplemented, or otherwise modified prior to the Effective Time, the "Credit Agreement"), by and betweenAllegiance andProsperity Bank , as lender. As ofSeptember 30, 2022 , there were no borrowings outstanding under the revolving credit facility contemplated by the Credit Agreement.
Item 2.01. Completion of Acquisition or Disposition of Assets.
The information set forth in the Introductory Note is incorporated herein by reference.
OnOctober 1, 2022 , pursuant to the terms of the Merger Agreement, Allegiance merged with and into CBTX, with CBTX continuing as the surviving entity in the Merger. Immediately after the Merger, CBTX's wholly owned bank subsidiary,CommunityBank of Texas, N.A ., a national banking association ("CommunityBank ofTexas "), merged with and into Allegiance's wholly owned bank subsidiary,Allegiance Bank , aTexas state banking association ("Allegiance Bank "), withAllegiance Bank as the surviving entity (the "Bank Merger"). Subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the Merger (the "Effective Time"), each share of common stock, par value$1.00 per share, of Allegiance ("Allegiance common stock") (except for shares of Allegiance common stock owned by Allegiance or CBTX, which were canceled in the Merger) was converted into the right to receive 1.4184 shares (the "Exchange Ratio" and such shares, the "Merger Consideration") of common stock, par value$0.01 per share, ofStellar Bancorp ("Stellar common stock"). At the Effective Time, each option to purchase shares of Allegiance common stock fully vested and was converted into an option to purchase a number of shares of Stellar common stock equal to the product of (1) the total number of shares of Allegiance common stock subject to such option immediately prior to the Effective Time multiplied by (2) the Exchange Ratio, with any fractional shares rounded down to the next lower whole number of shares. Each such converted option has an exercise price per share of Stellar common stock (rounded up to the nearest whole cent) equal to (a) the per share exercise price for the shares of Allegiance common stock subject to such option immediately prior to the Effective Time divided by (b) the Exchange Ratio. At the Effective Time, generally (1) each unvested performance share unit award in respect of shares of Allegiance common stock fully vested to the extent applicable performance goals have been achieved on a pro rata basis as of the Effective Time and was converted into the right to receive the Merger Consideration in respect of the applicable number of shares of Allegiance common stock, except that each unvested performance unit award granted less than one year prior to the closing date of the Merger was forfeited, and (2) each outstanding Allegiance restricted stock award under Allegiance's equity compensation plans vested and was converted into the right to receive the Merger Consideration.
The foregoing description of the Merger and the Merger Agreement does not
purport to be complete and is qualified in its entirety by reference to the
Merger Agreement, which was previously filed with the
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
OnSeptember 30, 2022 , Allegiance notifiedThe NASDAQ Stock Market LLC ("NASDAQ") that the Merger had been completed and requested that trading in Allegiance common stock be halted prior to market open onOctober 3, 2022 and that the listing of the Allegiance common stock be withdrawn. Allegiance has also requested that NASDAQ file a notification on Form 25 with theSEC to report the delisting of its shares from NASDAQ and to deregister its shares under -------------------------------------------------------------------------------- Section 12(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").Stellar Bancorp , as successor by merger to Allegiance, intends to file with theSEC a Form 15 requesting the deregistration of the Allegiance common stock under Section 12 of the Exchange Act and the suspension of its reporting obligations under Sections 13 and 15(d) of the Exchange Act.
Item 3.03. Material Modification to Rights of Security Holders.
The information set forth under the Introductory Note, Item 2.01 and Item 3.01 is incorporated into this Item 3.03 by reference.
Item 5.01. Changes in Control of Registrant.
The information set forth under the Introductory Note and Item 2.01 is incorporated into this Item 5.01 by reference.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective upon the consummation of the Merger, Allegiance's directors and executive officers ceased serving in such capacities.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
The information set forth under the Introductory Note and Item 2.01 is incorporated into this Item 5.03 by reference.
At the Effective Time, the separate corporate existence of Allegiance ceased. As a result of the Merger, CBTX's certificate of formation, as amended and restated in accordance with the Merger Agreement, and bylaws, as amended in accordance with the Merger Agreement, copies of which are included as Exhibits 3.1 and 3.2 hereto, respectively, and incorporated by reference herein, continued in effect as the certificate of formation and bylaws of the combined company.
Item 8.01. Other Events.
On
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following are furnished as exhibits to this Current Report on Form 8-K: Exhibit Number Description of Exhibit Agreement and Plan of Merger, datedNovember 5, 2021 , by and betweenAllegiance Bancshares, Inc. and CBTX, Inc. (incorporated herein by reference to 2.1 Exhibit 2.1 to the Company's Form 8-K filed on
First Amendment, dated as ofAugust 25, 2022 , to
the Agreement and Plan of
Merger, dated as ofNovember 5, 2021 , by and between
CBTX, Inc. and Allegiance
Bancshares, Inc. (incorporated herein by reference to Exhibit 2.1 to the 2.2 Company's Form 8-K filed on August 25, 20 2 2). Second Amended and Restated Certificate of
Formation of CBTX, Inc.
(incorporated herein by reference to Exhibit 3.1 toStellar Bancorp, Inc.'s 3.1 Form 8-K, filed with theSEC onOctober 3, 2022
(File No. 001-38280)).
Bylaws ofStellar Bancorp, Inc. (incorporated
herein by reference to Exhibit
3.2 toStellar Bancorp, Inc.'s Form 8-K filed with theSEC onOctober 3, 2022 3.2 (File No. 001-38280)). Press Release announcing the completion of the merger of Allegiance 99.1Bancshares, Inc. with and into CBTX, Inc, datedSeptember 30, 2022 . 104 Cover Page Interactive Data File (embedded within
the Inline XBRL document)
* Schedules attached to the Merger Agreement have been omitted pursuant to Item
601(b)(2) of Regulation S-K and will be furnished to the
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