Company Quick10K Filing
⚲
LegacyTexas Financial
Financials
Price39.49 EPS3
Shares48 P/E12
MCap1,892 P/FCF10
Net Debt-264 EBIT282
TEV1,629 TEV/EBIT6
TTM 2019-06-30, in MM, except price, ratios
Filings
10-Q 2019-06-30 Filed 2019-07-24
10-Q 2019-03-31 Filed 2019-04-23
10-K 2018-12-31 Filed 2019-02-07
10-Q 2018-09-30 Filed 2018-10-24
10-Q 2018-06-30 Filed 2018-07-25
10-Q 2018-03-31 Filed 2018-04-25
10-K 2017-12-31 Filed 2018-02-08
10-Q 2017-09-30 Filed 2017-10-24
10-Q 2017-06-30 Filed 2017-07-25
10-Q 2017-03-31 Filed 2017-04-25
10-K 2016-12-31 Filed 2017-02-09
10-Q 2016-09-30 Filed 2016-10-25
10-Q 2016-06-30 Filed 2016-07-26
10-Q 2016-03-31 Filed 2016-04-25
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-09-30 Filed 2015-10-27
10-Q 2015-06-30 Filed 2015-07-29
10-Q 2015-03-31 Filed 2015-04-29
10-K 2014-12-31 Filed 2015-02-25
10-Q 2014-09-30 Filed 2014-10-28
10-Q 2014-06-30 Filed 2014-07-29
10-Q 2014-03-31 Filed 2014-04-29
10-K 2013-12-31 Filed 2014-02-26
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-07-30
10-Q 2013-03-31 Filed 2013-04-30
10-K 2012-12-31 Filed 2013-02-20
10-Q 2012-09-30 Filed 2012-10-30
10-Q 2012-06-30 Filed 2012-07-26
10-Q 2012-03-31 Filed 2012-04-27
10-K 2011-12-31 Filed 2012-02-28
10-Q 2011-09-30 Filed 2011-10-27
10-Q 2011-06-30 Filed 2011-07-28
10-Q 2011-03-31 Filed 2011-04-28
10-K 2010-12-31 Filed 2011-03-03
10-Q 2010-09-30 Filed 2010-11-04
10-Q 2010-06-30 Filed 2010-07-26
Reports
8-K 2019-10-31
8-K 2019-10-28
8-K 2019-10-23
8-K 2019-10-21
8-K 2019-10-11
8-K 2019-10-08
8-K 2019-07-24
8-K 2019-06-16
8-K 2019-06-16
8-K 2019-05-20
8-K 2019-05-17
8-K 2019-04-24
8-K 2019-04-23
8-K 2019-04-10
8-K 2019-03-01
8-K 2019-01-23
8-K 2019-01-22
8-K 2019-01-09
8-K 2018-12-10
8-K 2018-10-17
8-K 2018-10-16
8-K 2018-10-09
8-K 2018-07-18
8-K 2018-07-17
8-K 2018-07-05
8-K 2018-05-21
8-K 2018-05-18
8-K 2018-04-18
8-K 2018-04-17
8-K 2018-04-04
8-K 2018-03-01
8-K 2018-01-24
8-K 2018-01-23
8-K 2018-01-10

LTXB 10Q Quarterly Report

Content
Part 1 - Financial Information Item 1. Financial Statements
Note 1 - Basis of Financial Statement Presentation
Note 2 - Revenue Recognition
Note 3 - Earnings per Common Share
Note 4 - Securities
Note 5 - Loans
Note 6 - Fair Value
Note 7 - Derivative Financial Instruments
Note 8 - Share - Based Compensation
Note 9 - Leases
Note 10 - Income Taxes
Note 11 - Commitments and Contingent Liabilities
Note 12 - Recent Accounting Developments
Note 13 - Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
Exhibits
EX-31.1 exhibit31120190630.htm
EX-31.2 exhibit31220190630.htm
EX-32 exhibit32020190630.htm

LegacyTexas Financial Earnings 2019-06-30

Balance SheetIncome StatementCash Flow
Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
☐
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-34737
LEGACYTEXAS FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland
 
27-2176993
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
5851 Legacy Circle
 
 
Plano,
Texas
 
75024
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (972) 578-5000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol
 
Name of Each Exchange on Which Registered
 
 
 
 
 
Common Stock, par value $0.01 per share
 
LTXB
 
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer
☒
 
Accelerated filer
☐
 
 
 
Non-accelerated filer
☐
 
Smaller reporting company
☐
 
 
 
Emerging growth company
☐
 
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
 
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class: Common Stock
 
Shares Outstanding as of July 22, 2019:
 
 
48,836,238



LEGACYTEXAS FINANCIAL GROUP, INC.
FORM 10-Q
June 30, 2019
INDEX
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





PART 1 - FINANCIAL INFORMATION        Item 1. Financial Statements
LEGACYTEXAS FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
 
June 30,
2019
 
December 31,
2018
ASSETS
(unaudited)
 
 
Cash and due from financial institutions
$
56,949

 
$
60,416

Short-term interest-bearing deposits in other financial institutions
206,894

 
208,777

Total cash and cash equivalents
263,843

 
269,193

Securities available for sale, at fair value
459,749

 
471,746

Securities held to maturity (fair value: June 30, 2019 — $128,864;
December 31, 2018— $144,791)
127,836

 
146,046

Loans held for sale, at fair value
46,571

 
23,193

Loans held for investment:
 
 
 
Loans held for investment (net of allowance for loan losses of $92,219 at June 30, 2019 and $67,428 at December 31, 2018)
6,999,607

 
6,733,692

Loans held for investment - Warehouse Purchase Program
1,542,684

 
960,404

Total loans held for investment
8,542,291

 
7,694,096

Federal Home Loan Bank (“FHLB”) stock and other restricted securities, at cost
79,195

 
56,226

Bank-owned life insurance
59,724

 
59,036

Premises and equipment, net
106,313

 
73,073

Goodwill
178,559

 
178,559

Other assets
71,853

 
79,974

Total assets
$
9,935,934

 
$
9,051,142

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Deposits
 
 
 
Non-interest-bearing demand
$
1,847,229

 
$
1,773,762

Interest-bearing demand
855,026

 
826,755

Savings and money market
2,548,966

 
2,455,787

Time
1,804,569

 
1,785,411

Total deposits
7,055,790

 
6,841,715

FHLB advances
1,384,765

 
825,409

Repurchase agreements
52,414

 
50,340

Subordinated debt
135,257

 
135,012

Accrued expenses and other liabilities
165,063

 
104,299

Total liabilities
8,793,289

 
7,956,775

Commitments and contingent liabilities (See Note 11)


 


Shareholders’ equity
 
 
 
Preferred stock, $.01 par value; 10,000,000 shares authorized; 0 shares issued — June 30, 2019 and December 31, 2018
—

 
—

Common stock, $.01 par value; 90,000,000 shares authorized; 48,833,238 shares issued —
June 30, 2019 and 48,505,261 shares issued — December 31, 2018
488

 
485

Additional paid-in capital
628,730

 
619,983

Retained earnings
523,693

 
491,948

Accumulated other comprehensive income (loss), net
860

 
(6,658
)
Unearned Employee Stock Ownership Plan (ESOP) shares; 1,112,664 shares at June 30, 2019 and 1,139,140 shares at December 31, 2018
(11,126
)
 
(11,391
)
Total shareholders’ equity
1,142,645

 
1,094,367

Total liabilities and shareholders’ equity
$
9,935,934

 
$
9,051,142

See accompanying notes to consolidated financial statements.

3

LEGACYTEXAS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Dollars in thousands, except per share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Interest and dividend income
 
 
 
 
 
 
 
Loans, including fees
$
108,154

 
$
98,570

 
$
208,455

 
$
189,201

Taxable securities
3,460

 
3,132

 
7,062

 
6,043

Nontaxable securities
410

 
641

 
753

 
1,316

Interest-bearing deposits in other financial institutions
1,370

 
1,097

 
2,647

 
2,066

FHLB and FRB stock and other
683

 
551

 
1,264

 
1,031

 
114,077

 
103,991

 
220,181

 
199,657

Interest expense
 
 
 
 
 
 
 
Deposits
20,444

 
13,732

 
38,659

 
25,764

FHLB advances
5,794

 
4,131

 
10,250

 
6,811

Repurchase agreements and other borrowings
2,285

 
2,199

 
4,554

 
4,540

 
28,523

 
20,062

 
53,463

 
37,115

Net interest income
85,554

 
83,929

 
166,718

 
162,542

Provision for credit losses
16,100

 
17,478

 
25,900

 
33,141

Net interest income after provision for credit losses
69,454

 
66,451

 
140,818

 
129,401

Non-interest income
 
 
 
 
 
 
 
Service charges and other fees
9,882

 
8,844

 
17,137

 
16,771

Net gain on sale of mortgage loans held for sale
2,879

 
1,668

 
4,404

 
3,477

Bank-owned life insurance income
489

 
479

 
971

 
926

Net gain (loss) on securities transactions
—

 
—

 
6

 
(128
)
Gain (loss) on sale and disposition of assets
18

 
(153
)
 
4

 
2,060

Other
(1,036
)
 
14

 
(396
)
 
644

 
12,232

 
10,852

 
22,126

 
23,750

Non-interest expense
 
 
 
 
 
 
 
Salaries and employee benefits
26,586

 
24,313

 
53,457

 
51,389

Merger costs
2,362

 
—

 
2,362

 
—

Advertising
982

 
1,358

 
1,885

 
2,246

Occupancy and equipment
3,950

 
3,980

 
7,849

 
7,840

Outside professional services
1,674

 
1,382

 
2,959

 
2,632

Regulatory assessments
831

 
731

 
1,449

 
1,885

Data processing
5,739

 
5,145

 
11,672

 
9,848

Office operations
2,568

 
2,224

 
4,903

 
4,524

Other
2,834

 
3,058

 
5,297

 
5,706

 
47,526

 
42,191

 
91,833

 
86,070

Income before income tax expense
34,160

 
35,112

 
71,111

 
67,081

Income tax expense
7,177

 
7,275

 
15,048

 
13,482

Net income
$
26,983

 
$
27,837

 
$
56,063

 
$
53,599

 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.57

 
$
0.59

 
$
1.18

 
$
1.14

Diluted
$
0.56

 
$
0.58

 
$
1.17

 
$
1.12

Dividends declared per share
$
0.25

 
$
0.16

 
$
0.50

 
$
0.32

 
 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.



4

LEGACYTEXAS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(Dollars in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
26,983

 
$
27,837

 
$
56,063

 
$
53,599

Change in unrealized gains (losses) on securities available for sale
4,169

 
(1,532
)
 
9,522

 
(6,377
)
Reclassification of amount realized through securities transactions
—

 
—

 
(6
)
 
128

Tax effect
(876
)
 
322

 
(1,998
)
 
1,310

Reclassification of income tax effects of the Tax Cuts and Jobs Act
—

 
—

 
—

 
(741
)
Other comprehensive income (loss), net of tax
3,293

 
(1,210
)
 
7,518

 
(5,680
)
Comprehensive income
$
30,276

 
$
26,627

 
$
63,581

 
$
47,919

 
 
 
 
 
 
 
 
See accompanying notes to consolidated financial statements.


5


LEGACYTEXAS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(unaudited)
(Dollars in thousands, except share and per share data)
 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss), Net
 
Unearned
ESOP Shares
 
Total
Shareholders’
Equity
For the six months ended June 30, 2019
 
 
 
 
 
 
 
 
Balance at January 1, 2019
$
485

 
$
619,983

 
$
491,948

 
$
(6,658
)
 
$
(11,391
)
 
$
1,094,367

Net income
—

 
—

 
29,080

 
—

 
—

 
29,080

Other comprehensive income, net of tax
—

 
—

 
—

 
4,225

 
—

 
4,225

Dividends declared ($0.25 per share)
—

 
—

 
(12,141
)
 
—

 
—

 
(12,141
)
ESOP shares earned (13,238 shares)
—

 
385

 
—

 
—

 
132

 
517

Share-based compensation expense
—

 
2,550

 
—

 
—

 
—

 
2,550

Activity in employee stock plans (198,809 shares)
2

 
2,487

 
—

 
—

 
—

 
2,489

Balance at March 31, 2019
$
487

 
$
625,405

 
$
508,887

 
$
(2,433
)
 
$
(11,259
)
 
$
1,121,087

Net income
—

 
—

 
26,983

 
—

 
—

 
26,983

Other comprehensive income, net of tax
—

 
—

 
—

 
3,293

 
—

 
3,293

Dividends declared, ($0.25 per share)
—

 
—

 
(12,177
)
 
—

 
—

 
(12,177
)
ESOP shares earned, (13,238 shares)
—

 
387

 
—

 
—

 
133

 
520

Share-based compensation expense
—

 
2,015

 
—

 
—

 
—

 
2,015

Activity in employee stock plans, (129,168 shares)
1

 
923

 
—

 
—

 
—

 
924

Balance at June 30, 2019
$
488

 
$
628,730

 
$
523,693

 
$
860

 
$
(11,126
)
 
$
1,142,645

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30, 2018
 
 
 
 
 
 
 
 
Balance at January 1, 2018
$
481

 
$
603,884

 
$
370,858

 
$
(3,429
)
 
$
(11,920
)
 
$
959,874

Net income
—

 
—

 
25,762

 
—

 
—

 
25,762

Other comprehensive (loss), net of tax
—

 
—

 
—

 
(4,470
)
 
—

 
(4,470
)
Reclassification of income tax effects of the Tax Cuts and Jobs Act
—

 
—

 
741

 
—

 
—

 
741

Dividends declared ($0.16 per share)
—

 
—

 
(7,708
)
 
—

 
—

 
(7,708
)
ESOP shares earned (13,238 shares)
—

 
447

 
—

 
—

 
131

 
578

Share-based compensation expense
—

 
2,055

 
—

 
—

 
—

 
2,055

Activity in employee stock plans (147,576 shares)
2

 
2,660

 
—

 
—

 
—

 
2,662

Balance at March 31, 2018
$
483

 
$
609,046

 
$
389,653

 
$
(7,899
)
 
$
(11,789
)
 
$
979,494

Net income
—

 
—

 
27,837

 
—

 
—

 
27,837

Other comprehensive (loss), net of tax
—

 
—

 
—

 
(1,210
)
 
—

 
(1,210
)
Dividends declared, ($.16 per share)
—

 
—

 
(7,725
)
 
—

 
—

 
(7,725
)
ESOP shares earned, (13,238 shares)
—

 
427

 
—

 
—

 
133

 
560

Share-based compensation expense
—

 
1,398

 
—

 
—

 
—

 
1,398

Activity in employee stock plans, (46,254 shares)
—

 
1,096

 
—

 
—

 
—

 
1,096

Balance at June 30, 2018
$
483

 
$
611,967

 
$
409,765

 
$
(9,109
)
 
$
(11,656
)
 
$
1,001,450


See accompanying notes to consolidated financial statements.

6

LEGACYTEXAS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(Dollars in thousands)

 
Six Months Ended June 30,
 
2019
 
2018
Cash flows from operating activities
 
 
 
Net income
$
56,063

 
$
53,599

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Provision for credit losses
25,900

 
33,141

Depreciation and amortization
5,678

 
3,401

Deferred tax benefit
(7,280
)
 
2,226

Premium amortization and accretion of securities, net
1,912

 
1,986

Accretion related to acquired loans
(491
)
 
(1,147
)
Net (gain) loss on securities transactions
(6
)
 
128

ESOP compensation expense
1,037

 
1,138

Share-based compensation expense
4,565

 
3,453

Excess tax benefit on vesting of stock awards
140

 
681

Net gain on loans held for sale
(4,404
)
 
(3,477
)
Loans originated or purchased for sale
(108,201
)
 
(100,470
)
Proceeds from sale of loans held for sale
89,227

 
87,106

FHLB stock dividends
(588
)
 
(391
)
Bank-owned life insurance income
(971
)
 
(926
)
(Gain) loss on sale and disposition of repossessed assets, premises and equipment
(31
)
 
190

Net change in deferred loan fees/costs
(1,354
)
 
(2,744
)
Net change in accrued interest receivable
(5,421
)
 
(1,093
)
Net change in other assets
10,972

 
(3,246
)
Net change in other liabilities
31,516

 
28,904

Net cash provided by operating activities
98,263

 
102,459

Cash flows from investing activities
 
 
 
Available-for-sale securities:
 
 
 
Maturities, prepayments and calls
343,727

 
1,087,449

Purchases
(347,545
)
 
(1,121,303
)
Proceeds from sale of AFS securities
23,886

 
—

Held-to-maturity securities:
 
 
 
Maturities, prepayments and calls
17,751

 
23,236

Purchases
—

 
(5,388
)
Originations of Warehouse Purchase Program loans
(10,460,194
)
 
(10,980,262
)
Proceeds from pay-offs of Warehouse Purchase Program loans
9,877,914

 
11,009,979

Net change in loans held for investment, excluding Warehouse Purchase Program loans
(290,389
)
 
(227,028
)
Purchase of FHLB and Federal Reserve Bank stock and other
(22,381
)
 
(880
)
Purchases of premises and equipment
(2,128
)
 
(4,454
)
Proceeds from sale of assets
1,146

 
1,225

Net cash (used in) investing activities
(858,213
)
 
(217,426
)

7

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Dollars in thousands)

 
Six Months Ended June 30,
 
2019
 
2018
Cash flows from financing activities
 
 
 
Net change in deposits
214,075

 
113,665

Proceeds from FHLB advances
1,380,000

 
1,055,000

Repayments on FHLB advances
(820,644
)
 
(1,032,222
)
Proceeds from (repayments of) borrowings
2,074

 
(43,346
)
Payment of dividends
(24,318
)
 
(15,433
)
Activity in employee stock plans
3,413

 
3,758

Net cash provided by financing activities
754,600

 
81,422

Net change in cash and cash equivalents
(5,350
)
 
(33,545
)
Beginning cash and cash equivalents
269,193

 
293,456

Ending cash and cash equivalents
$
263,843

 
$
259,911

Supplemental noncash disclosures:
 
 
 
Transfers from loans to other real estate owned
$
286

 
$
25

Leased assets obtained in exchange for new operating lease liabilities
$
36,503

 
$
—

See accompanying notes to consolidated financial statements.

8
Table of Contents
LEGACYTEXAS FINANCIAL GROUP, INC.
CONDENSED NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)


Note 1 - Basis of Financial Statement Presentation
The accompanying unaudited consolidated interim financial statements of LegacyTexas Financial Group, Inc. (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all normal and recurring adjustments which are considered necessary to fairly present the results for the interim periods presented have been included. Certain items in prior periods were reclassified to conform to the current presentation. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). Interim results are not necessarily indicative of results for a full year.
In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from those estimates. For further information with respect to significant accounting policies followed by the Company in preparation of its consolidated financial statements, refer to the 2018 Form 10-K.
The accompanying unaudited consolidated interim financial statements include the accounts of the Company, whose business primarily consists of the operations of its wholly owned subsidiary, LegacyTexas Bank (the “Bank”). All significant intercompany transactions and balances are eliminated in consolidation.
On June 17, 2019, the Company and Prosperity Bancshares, Inc.® (“Prosperity”) jointly announced the signing of a definitive merger agreement (the “merger agreement”) pursuant to which the Company will merge with Prosperity, with Prosperity as the surviving entity.
 
Under the terms of the merger agreement, shareholders of the Company will receive 0.5280 shares of Prosperity common stock and $6.28 cash for each share of common stock, subject to certain conditions.  Based on Prosperity’s closing price of $67.24 on June 14, 2019, the total consideration was valued at approximately $2.1 billion, or approximately $41.78 per share.
 
Kevin Hanigan, the Company’s President and Chief Executive Officer, will join the Prosperity team as the President and Chief Operating Officer of Prosperity and President of Prosperity Bank; and Mays Davenport, the Company’s Chief Financial Officer, will be named Executive Vice President and Director of Corporate Strategy of Prosperity and Prosperity Bank.  Scott Almy, Tom Swiley, Chuck Eikenberg and Aaron Shelby will hold senior management positions at Prosperity Bank.
 
In addition, upon completion of the merger, Kevin Hanigan and two independent directors of the Company will join the Board of Directors of Prosperity, which will be expanded accordingly. Mays Davenport will join the Board of Directors of Prosperity Bank.
  
The merger has been unanimously approved by the Board of Directors of Prosperity and unanimously approved by the independent directors of LegacyTexas, with Mr. Hanigan abstaining, and is expected to close during the fourth quarter of 2019, although delays could occur. The transaction is subject to certain conditions, including the approval by the Company shareholders and Prosperity shareholders and customary regulatory approvals.


9
Table of Contents
LEGACYTEXAS FINANCIAL GROUP, INC.
CONDENSED NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)

Note 2 - Revenue Recognition

Revenue recognized from contracts with customers, which is accounted for under Accounting Standards Codification (“ASC”) 606, is entirely included in the Company’s non-interest income. Interest income and certain types of non-interest income are not accounted for under ASC 606 as it is accounted for under other accounting standards. Significant revenue streams recognized by the Company from contracts with customers accounted for under ASC 606 for the three and six months ended June 30, 2019 and 2018, are below:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Card services income
(a)
$
3,583

 
$
3,295

 
$