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Business Combination | 12 Months Ended
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Dec. 31, 2020
Business Combinations [Abstract] |
Business Combination | Note 2. Business Combination On September 21, 2019, the Company completed the acquisition of all of the outstanding common stock of MidSouth Bancorp, Inc. (“MidSouth”) (NYSE: MSL), parent company of MidSouth Bank, N.A. The acquisition provided the Company opportunity for both enhanced growth in several of its current markets, such as MidSouth’s home market of Lafayette, Louisiana, as well as opportunities for expansion into new markets in Louisiana and Texas. The transaction was accounted for as a business combination whereby the Company acquired net assets with a fair value of $130.5 million and recorded goodwill of $63.4 million. In consideration for the net assets acquired, the Company issued approximately 5.0 million shares of common stock, resulting in a transaction value of $193.8 million. The following table sets forth the acquisition date fair value of the assets acquired and liabilities assumed, and the resulting goodwill. The goodwill is not deductible for federal income tax purposes.
(in thousands) |  |  |  |
ASSETS |  |  |  |
Cash and due from banks |  | $ | 28,059 |
Interest bearing bank deposits |  |  | 276,911 |
Federal funds sold |  |  | 3,475 |
Securities available for sale |  |  | 272,240 |
Loans |  |  | 787,628 |
Property and equipment |  |  | 34,288 |
Other real estate |  |  | 343 |
Identifiable intangible assets |  |  | 31,500 |
Other assets |  |  | 79,888 |
Total identifiable assets |  |  | 1,514,332 |
LIABILITIES |  |  |  |
Deposit liabilities |  |  | 1,280,947 |
Short term borrowings |  |  | 66,996 |
Long term debt |  |  | 13,919 |
Other liabilities |  |  | 21,990 |
Total liabilities |  |  | 1,383,852 |
Net assets acquired |  |  | 130,480 |
Value of stock-based consideration |  |  | 193,849 |
Goodwill |  | $ | 63,369 |
The operating results of the Company for the years ended December 31, 2020 and 2019 include the results from the operations of the acquired business from the date of acquisition. The results of the acquired business are not material to the Company’s consolidated results of operations and, as such, neither supplemental pro forma information of the combined entity nor revenue and earnings contributed by the acquired business since the date of acquisition are presented. During the year ended December 31, 2019, the Company incurred acquisition related costs of approximately $32.7 million. The following table presents the acquisition related costs by component:
(in thousands) |  |  |
Personnel expense |  | $ | 7,506 |
Net occupancy and equipment expense |  |  | 1,464 |
Professional services expense |  |  | 7,075 |
Data processing expense |  |  | 1,092 |
Other real estate |  |  | 130 |
Advertising expense |  |  | 2,581 |
Other expense |  |  | 12,818 |
Total merger-related expenses |  | $ | 32,666 |
Personnel expense includes severance and change in control costs. Professional services expense includes legal and consulting costs, including costs associated with systems conversion. Other expense includes contract and lease termination fees and other transaction-related costs. Goodwill Resulting from Business Combinations Goodwill represents the excess of the consideration transferred over the fair value of the net assets acquired. 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 business combinations. The following table illustrates the change in the Company’s goodwill for the year ended December 31, 2019. No measurement period adjustments were recorded during the year ended December 31, 2020.
(in thousands) |  |  |  |
Goodwill balance at December 31, 2018 |  | $ | 790,972 |
Final settlement of cash consideration - acquisition of trust and asset management business |  |  | 1,112 |
Initial goodwill recorded in acquisition of MidSouth Bancorp, Inc. |  |  | 69,207 |
Measurement period adjustments - acquisition of MidSouth Bancorp, Inc. |  |  | (5,838 | )
Goodwill balance at December 31, 2019 |  | $ | 855,453 |
Goodwill balance at December 31, 2020 |  | $ | 855,453 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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