On February 4, 2015, Pinnacle Bank entered into a loan agreement with US Bank, National Association ('Lender'), pursuant to which the bank borrowed $40 million. Borrowings under the loan agreement, combined with available cash, were used by the bank to fund its investment in Bankers Healthcare Group, LLC. The bank's borrowings under the loan agreement bear interest at rates at the greater of 0% and the one-month LIBOR rate quoted by Lender, plus in each case an applicable margin.

The applicable margin under the loan agreement ranges from 1.65% (165 basis points) to 1.95% (195 basis points) depending on the total aggregate principal amount outstanding under the loan agreement. The initial applicable margin is 1.95% (195 basis points). The bank is required to make quarterly principal payments of $1.0 million beginning on June 30, 2015, and the loan matures on February 28, 2020.

The bank is permitted to prepay all or a portion of the principal amount outstanding under the loan agreement without penalty (in minimum aggregate amounts of $100,000) at any time so long as no event of default or unmatured event of default has occurred and is continuing.