Note 11 - Subsequent Events - Acquisitions

9 Months Ended

Sep. 30, 2018

SUBSEQUENT EVENTS - ACQUISITIONS

SUBSEQUENT EVENTS - ACQUISITIONS

NOTE 11 –SUBSEQUENT EVENTS - ACQUISITIONS

BATES COMPANIES

On October 1, 2018 the Company announced the successful completion of the previously announced acquisition of the Bates Companies, headquartered in Rockford, Illinois. The acquisition and subsequent merger of the Bates Companies into RB&T will enhance the wealth management services of RB&T by adding approximately $700 million of assets under management.

In the acquisition, the Company acquired 100% of the Bates Companies' outstanding common stock for an aggregate consideration of $3.0 million cash and up to $3.0 million of the Company's common stock.  Of the total cash consideration, $1.5 million in cash was paid at closing.  This was funded through operating cash.  The additional $1.5 million was recorded as a promissory note and will be repaid in five equal, annual installments of $300,000 each on the first through fifth anniversaries of the closing date.  Interest will be paid at a rate of 2.18% per annum, based on the applicable federal rate as of the closing date.  Additionally, in a private placement exempt from registration with the SEC, the Company will issue $1.0 million  of Company stock in November 2018.  Assuming all future performance based contingent consideration is realized, total stock consideration can reach $3.0 million, which would result in the Company issuing approximately 70,504 common shares based on the 10-day volume weighted average of the closing stock price of the Company ending five days prior to closing.

During the first nine months of 2018, the Company incurred $401 thousand of expenses related to the acquisition, comprised primarily of legal and accounting costs.