XML 25 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Acquisitions and Divestiture | 12 Months Ended
--- | ---
Dec. 31, 2018
Acquisitions [Abstract] |
Acquisitions and Divestiture | Note 2. Acquisitions and Divestiture ﻿ Acquisitions ﻿ On July 13, 2018, the Company acquired the bank-managed high net worth individual and institutional investment management and trust business of Capital One, National Association (“Capital One”). The transaction added assets under management of $4 billion and assets under management and administration of $10.4 billion to the Company’s existing trust and asset management business. In addition, the Company assumed approximately $217 million of customer deposit liabilities. The net consideration received is subject to final settlement, which is expected to occur during the first quarter of 2019. The transaction was accounted for as a business combination. The following table sets forth the preliminary acquisition date fair value of the assets acquired and the liabilities assumed, the consideration received, and the resulting goodwill as of December 31, 2018. ﻿
﻿ |  |
﻿ |  |
﻿(in thousands) |  |
﻿ASSETS |  |
﻿Accounts receivable | $ | 2,803
﻿Identifiable intangible assets |  | 27,562
﻿ Total identifiable assets |  | 30,365
﻿ |  |
﻿LIABILITIES |  |
﻿Deposit liabilities |  | 217,432
﻿Other liabilities |  | 151
﻿ Total liabilities |  | 217,583
﻿ Net liabilities assumed |  | (187,218)
﻿ Consideration received |  | 141,769
﻿ Goodwill | $ | 45,449
﻿ Identifiable intangible assets include customer relationships that are being amortized using an accelerated method based on forecasted cash flows over a useful life of approximately 17 years. Goodwill represents the excess of the fair value of net liabilities assumed over the consideration received. It is comprised of estimated future economic benefits arising from the transaction that cannot be individually identified or do not qualify for separate recognition. These benefits include expanded presence in existing markets and entry into new markets, and expected earnings streams and operational efficiencies that the Company believes will result from this business combination. The tax basis of the goodwill is expected to be deductible for federal income tax purposes. ﻿ On March 10, 2017, the Company acquired certain assets and assumed certain liabilities, including nine branches, from First NBC Bank (“FNBC”), referred to as the FNBC I transaction. The Company paid approximately $323 million in cash consideration ($326 million cash paid net of $3 million in branch cash acquired), including a $41.6 million transaction premium for the earnings stream acquired. ﻿ On April 28, 2017, the Louisiana Office of Financial Institutions (“OFI”) closed FNBC and appointed the FDIC as receiver. The Company entered into a purchase and assumption agreement with the FDIC, referred to as the FNBC II transaction. Pursuant to the agreement, the Company acquired selected assets and assumed select liabilities of the former FNBC, including substantially all of the transaction and savings deposits. The Company paid a premium of $35 million to the FDIC for the earnings stream acquired and received approximately $800 million in cash ($64 2 million from the FDIC for the net liabilities assumed and $158 million in branch cash acquired). ﻿ The FNBC transactions were accounted for as business combinations. The following table sets forth the acquisition date fair value of the assets acquired and the liabilities assumed, the consideration paid or received, and the resulting goodwill in each of the FNBC transactions, and in the aggregate. ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  | FNBC I |  |  | FNBC II |  |  |
﻿(in thousands) |  |  | March 10, 2017 |  |  | April 28, 2017 |  |  | Total
﻿ASSETS |  |  |  |  |  |  |  |  |
﻿Cash and due from banks |  | $ | 2,856 |  | $ | 157,932 |  | $ | 160,788
﻿Interest-bearing time deposits with other banks |  |  | — |  |  | 382,622 |  |  | 382,622
﻿Fed funds sold and other short-term investments |  |  | — |  |  | 148 |  |  | 148
﻿Securities |  |  | — |  |  | 213,877 |  |  | 213,877
﻿Total loans |  |  | 1,203,092 |  |  | 165,577 |  |  | 1,368,669
﻿Property and equipment |  |  | 11,946 |  |  | 8,988 |  |  | 20,934
﻿Accrued interest receivable |  |  | 3,143 |  |  | 885 |  |  | 4,028
﻿Identifiable intangible assets |  |  | 3,900 |  |  | 21,400 |  |  | 25,300
﻿Deferred tax asset |  |  | 856 |  |  | 1,364 |  |  | 2,220
﻿Other assets |  |  | 63 |  |  | 4,150 |  |  | 4,213
﻿ Total identifiable assets |  |  | 1,225,856 |  |  | 956,943 |  |  | 2,182,799
﻿ |  |  |  |  |  |  |  |  |
﻿LIABILITIES |  |  |  |  |  |  |  |  |
﻿Deposits |  |  | 398,171 |  |  | 1,530,338 |  |  | 1,928,509
﻿Short-term borrowings |  |  | 510,749 |  |  | 85,886 |  |  | 596,635
﻿Long-term debt |  |  | 93,120 |  |  | — |  |  | 93,120
﻿Other liabilities |  |  | 1,607 |  |  | 3,079 |  |  | 4,686
﻿ Total liabilities |  |  | 1,003,647 |  |  | 1,619,303 |  |  | 2,622,950
﻿ Net identifiable assets acquired (liabilities assumed) |  |  | 222,209 |  |  | (662,360) |  |  | (440,151)
﻿ Consideration (Paid) Received |  |  | (325,756) |  |  | 641,577 |  |  | 315,821
﻿ Goodwill |  | $ | 103,547 |  | $ | 20,783 |  | $ | 124,330
﻿ ﻿ ﻿ The loans acquired were recorded at estimated fair value at the acquisition dates with no carryover of the related allowance for loan losses. Substantially all of the loans acquired were considered to be performing (“purchased credit performing”) based on such factors as past due status and nonaccrual status, and were accounted for under Accounting Standards Codification (“ASC”) 310-20. The unpaid principal balance of the performing loans acquired totaled $1.4 billion, of which $31.7 million is not expected to be collected. The difference at the acquisition dates between the fair value and the contractual amounts due (the “fair value discount”) of $41.0 million will be accreted into income over the estimated lives of the loan pools established in the valuation. Loans with an unpaid principal balance of $39.9 million and a fair value of $15.0 million were considered to be purchased credit impaired and were accounted for under ASC 310-30 using the cost recovery method; as such, the related fair value discount of $24.9 million will not be accreted into income. ﻿ The Company assumed approximately $6 90 million of borrowings in the transactions, consisting of short-term and long-term Federal Home Loan Bank (“FHLB”) borrowings and securities sold under repurchase agreements. The short-term FHLB borrowings consisted of $460 million in variable rate term notes and $51 million in fixed rate term notes. The long-term FHLB borrowings included $93.1 million in fixed rate term notes. Identifiable intangible assets consist of core deposit intangibles totaling $2 5.3 million that are being amortized using sum of years’ digits over the asset’s life of eight years for the FNBC I transaction and eleven years for the FNBC II transaction. Goodwill totaling $124.3 million represents the excess of the consideration paid over the fair value of the net assets acquired, or the excess of the fair value of the net liabilities assumed over the consideration received. It is comprised of estimated future economic benefits arising from these transactions that cannot be individually identified or do not qualify for separate recognition. These benefits include increased market share in the Greater New Orleans and Florida Panhandle market areas, expected earnings streams, and operational efficiencies that the Company believes will result from these business combinations. The tax basis of the goodwill generated from these transactions is deductible for federal income tax purposes. ﻿ The following table illustrates the change in the Company’s goodwill for the years ended December 31, 2018 and 2017: ﻿ ﻿
﻿ |  |
﻿ |  |
﻿(in thousands) |  |
﻿Goodwill balance at December 31, 2016 | $ | 621,193
﻿Additions and adjustments: |  |
﻿ Initial goodwill recorded in FNBC I transaction |  | 95,568
﻿ Measurement period adjustments - FNBC I transaction |  | 7,979
﻿ Initial goodwill recorded in FNBC II transaction |  | 23,009
﻿ Measurement period adjustments - FNBC II transaction |  | (2,226)
﻿Goodwill balance at December 31, 2017 | $ | 745,523
﻿Additions and adjustments: |  |
﻿ Initial goodwill recorded in acquisition of trust and asset management business |  | 45,634
﻿ Measurement period adjustments - acquisition of trust and asset management business |  | (185)
﻿Goodwill balance at December 31, 2018 | $ | 790,972
﻿ The operating results of the Company for the year s ended December 31, 2018 and 2017 include the results from the operations acquired in the trust and asset management and the FNBC transactions since the respective acquisition dates. The acquired trust and asset management business added approximately $10.5 million of trust fee revenue and $7.3 million of related expense to the Company’s result of operations for the year ended December 31, 2018. Supplemental pro forma financial information of the combined entity for the years ended December 31, 2018 and 2017 is not presented as the results of acquired business are not material to the Company’s results of operations. In the cases of the FNBC transactions, e stimating reliable historical financial information is impracticable as only selected components of the businesses, as historically operated, were acquired. A number of post-acquisition events following the FNBC transactions, including the consolidation of certain branch locations and the integration of operations, cash and investments acquired make quantifying discrete earnings contributions of the businesses acquired impracticable. As such, neither supplemental pro forma financial information of the combined entity, nor revenue and earnings contributed by the businesses acquired since the dates of acquisition are presented. ﻿ The Company incurred merger-related costs in connection with the trust and asset management acquisition during the year ended December 31, 2018 and the FNBC transactions during the year ended December 31, 2017. The following table sets forth the merger-related costs incurred during the respective years: ﻿ ﻿
﻿ |  |  |  |  |
﻿ |  |  |  |  |
﻿ | Years Ended December 31,
﻿(in thousands) |  | 2018 |  |  | 2017
﻿Personnel expense | $ | 1,257 |  | $ | 3,662
﻿Net occupancy and equipment expense |  | 309 |  |  | 777
﻿Professional services expense |  | 2,827 |  |  | 9,681
﻿Data processing expense |  | 1,583 |  |  | 974
﻿Other real estate |  | - |  |  | (1,511)
﻿Advertising expense |  | 52 |  |  | 1,389
﻿Other expense |  | 159 |  |  | 4,398
﻿Total merger-related expenses | $ | 6,187 |  | $ | 19,370
﻿ Divestiture ﻿ On March 9, 2018, the Company sold its consumer finance subsidiary, Harrison Finance Company (“HFC”). The Company received cash of approximately $78.9 million and recorded a loss on the sale of $1.1 million. ﻿ ﻿

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration