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Note 2 - Acquisitions | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | NOTE 2: ACQUISITIONS Citizens National Bank On September 9, 2016, Simmons First National Corporation completed the acquisition of Citizens National Bank (“Citizens”), headquartered in Athens, Tennessee. The Company issued 835,741 shares of its common stock valued at approximately $41.3 million as of September 9, 2016, plus $35.0 million in cash in exchange for all outstanding shares of Citizens common stock. Prior to the acquisition, Citizens conducted banking business from 9 branches located in east Tennessee. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately $585.5 million in assets, including approximately $340.9 million in loans (inclusive of loan discounts) and approximately $509.9 million in deposits. The Company completed the systems conversion and merged Citizens into Simmons Bank on October 21, 2016. Goodwill of $21.5 million was recorded as a result of the transaction. The merger strengthened the Company’s position in the east Tennessee market and the Company is able to achieve cost savings by integrating the two companies and combining accounting, data processing, and other administrative functions all of which gave rise to the goodwill recorded. The goodwill will be deductible for tax purposes. A summary, at fair value, of the assets acquired and liabilities assumed in the Citizens transaction, as of the acquisition date, is as follows:
(In thousands) |  | Acquired from Citizens |  | Fair Value Adjustments |  | Fair Value
Assets Acquired |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 131,467 |  |  | $ | -- |  |  | $ | 131,467 |
Federal funds sold |  |  | 10,000 |  |  |  | -- |  |  |  | 10,000 |
Investment securities |  |  | 61,987 |  |  |  | 1 |  |  |  | 61,988 |
Loans acquired |  |  | 350,361 |  |  |  | (9,511 | ) |  |  | 340,850 |
Allowance for loan losses |  |  | (4,313 | ) |  |  | 4,313 |  |  |  | -- |
Foreclosed assets |  |  | 4,960 |  |  |  | (1,518 | ) |  |  | 3,442 |
Premises and equipment |  |  | 6,746 |  |  |  | 1,339 |  |  |  | 8,085 |
Bank owned life insurance |  |  | 6,632 |  |  |  | -- |  |  |  | 6,632 |
Core deposit intangible |  |  | -- |  |  |  | 5,075 |  |  |  | 5,075 |
Other intangibles |  |  | -- |  |  |  | 591 |  |  |  | 591 |
Other assets |  |  | 17,364 |  |  |  | 6 |  |  |  | 17,370 |
Total assets acquired |  | $ | 585,204 |  |  | $ | 296 |  |  | $ | 585,500 |
Liabilities Assumed |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing transaction accounts |  | $ | 109,281 |  |  | $ | -- |  |  | $ | 109,281 |
Interest bearing transaction accounts and savings deposits |  |  | 204,912 |  |  |  | -- |  |  |  | 204,912 |
Time deposits |  |  | 195,664 |  |  |  | -- |  |  |  | 195,664 |
Total deposits |  |  | 509,857 |  |  |  | -- |  |  |  | 509,857 |
Securities sold under agreement to repurchase |  |  | 13,233 |  |  |  | -- |  |  |  | 13,233 |
FHLB borrowings |  |  | 4,000 |  |  |  | 47 |  |  |  | 4,047 |
Accrued interest and other liabilities |  |  | 3,558 |  |  |  | -- |  |  |  | 3,558 |
Total liabilities assumed |  |  | 530,648 |  |  |  | 47 |  |  |  | 530,695 |
Equity |  |  | 54,556 |  |  |  | (54,556 | ) |  |  | -- |
Total equity assumed |  |  | 54,556 |  |  |  | (54,556 | ) |  |  | -- |
Total liabilities and equity assumed |  | $ | 585,204 |  |  | $ | (54,509 | ) |  | $ | 530,695 |
Net assets acquired |  |  |  |  |  |  |  |  |  |  | 54,805 |
Purchase price |  |  |  |  |  |  |  |  |  |  | 76,300 |
Goodwill |  |  |  |  |  |  |  |  |  | $ | 21,495 |
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The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. Management will continue to review the estimated fair values and to evaluate the assumed tax positions. The Company expects to finalize its analysis of the acquired assets and assumed liabilities in this transaction over the next few months, within one year of the acquisition. Therefore, adjustments to the estimated amounts and carrying values may occur. The Company’s operating results for 2016 include the operating results of the acquired assets and assumed liabilities of Citizens subsequent to the acquisition date. Liberty Bancshares, Inc. On February 27, 2015, Simmons First National Corporation completed the acquisition of Liberty Bancshares, Inc. (“Liberty”), headquartered in Springfield, Missouri, including its wholly-owned bank subsidiary Liberty Bank (“LB”). The Company issued 5,181,337 shares of its common stock valued at approximately $212.2 million as of February 27, 2015 in exchange for all outstanding shares of Liberty common stock. Prior to the acquisition, Liberty conducted banking business from 24 branches located in southwest Missouri. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately $1.1 billion in assets, including approximately $780.7 million in loans (inclusive of loan discounts) and approximately $874.7 million in deposits. The Company completed the systems conversion and merged LB into Simmons First National Bank on April 24, 2015. Goodwill of $95.2 million was recorded as a result of the transaction. The merger strengthened the Company’s position in the southwest Missouri market and the Company is able to achieve cost savings by integrating the two companies and combining accounting, data processing, and other administrative functions all of which give rise to the goodwill recorded. The goodwill will not be deductible for tax purposes.
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A summary, at fair value, of the assets acquired and liabilities assumed in the Liberty transaction, as of the acquisition date, is as follows:
(In thousands) |  | Acquired from Liberty |  | Fair Value Adjustments |  | Fair Value
Assets Acquired |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks, including time deposits |  | $ | 102,637 |  |  | $ | (14 | ) |  | $ | 102,623 |
Federal funds sold |  |  | 7,060 |  |  |  | -- |  |  |  | 7,060 |
Investment securities |  |  | 99,123 |  |  |  | (335 | ) |  |  | 98,788 |
Loans acquired, not covered by FDIC loss share |  |  | 790,493 |  |  |  | (9,835 | ) |  |  | 780,658 |
Allowance for loan losses |  |  | (10,422 | ) |  |  | 10,422 |  |  |  | -- |
Premises and equipment |  |  | 34,239 |  |  |  | (3,215 | ) |  |  | 31,024 |
Bank owned life insurance |  |  | 16,972 |  |  |  | -- |  |  |  | 16,972 |
Core deposit intangible |  |  | 699 |  |  |  | 13,857 |  |  |  | 14,556 |
Other intangibles |  |  | 3,063 |  |  |  | (3,063 | ) |  |  | -- |
Other assets |  |  | 17,703 |  |  |  | (3,112 | ) |  |  | 14,591 |
Total assets acquired |  | $ | 1,061,567 |  |  | $ | 4,705 |  |  | $ | 1,066,272 |
Liabilities Assumed |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing transaction accounts |  | $ | 146,618 |  |  | $ | -- |  |  | $ | 146,618 |
Interest bearing transaction accounts and savings deposits |  |  | 543,183 |  |  |  | -- |  |  |  | 543,183 |
Time deposits |  |  | 184,913 |  |  |  | -- |  |  |  | 184,913 |
Total deposits |  |  | 874,714 |  |  |  | -- |  |  |  | 874,714 |
FHLB borrowings |  |  | 46,128 |  |  |  | 223 |  |  |  | 46,351 |
Subordinated debentures |  |  | 20,620 |  |  |  | (510 | ) |  |  | 20,110 |
Accrued interest and other liabilities |  |  | 7,828 |  |  |  | 300 |  |  |  | 8,128 |
Total liabilities assumed |  |  | 949,290 |  |  |  | 13 |  |  |  | 949,303 |
Equity |  |  | 112,277 |  |  |  | (112,277 | ) |  |  | -- |
Total equity assumed |  |  | 112,277 |  |  |  | (112,277 | ) |  |  | -- |
Total liabilities and equity assumed |  | $ | 1,061,567 |  |  | $ | (112,264 | ) |  | $ | 949,303 |
Net assets acquired |  |  |  |  |  |  |  |  |  |  | 116,969 |
Purchase price |  |  |  |  |  |  |  |  |  |  | 212,176 |
Goodwill |  |  |  |  |  |  |  |  |  | $ | 95,207 |
During 2015 the Company finalized its analysis of the acquired loans and subordinated debentures along with the other acquired assets and assumed liabilities. The Company’s operating results for 2016 and 2015 include the operating results of the acquired assets and assumed liabilities of Liberty subsequent to the acquisition date. Community First Bancshares, Inc. On February 27, 2015, Simmons First National Corporation completed the acquisition of Community First Bancshares, Inc. (“Community First”), headquartered in Union City, Tennessee, including its wholly-owned bank subsidiary First State Bank (“FSB”). The Company issued 6,552,915 shares of its common stock valued at approximately $268.3 million as of February 27, 2015, plus $9,974 in cash in exchange for all outstanding shares of Community First common stock. The Company also issued $30.9 million of preferred stock in exchange for all outstanding shares of Community First preferred stock. On January 29, 2016, the Company redeemed all of the preferred stock, including accrued and unpaid dividends. Prior to the acquisition, Community First conducted banking business from 33 branches located across Tennessee. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately $1.9 billion in assets, including approximately $1.1 billion in loans (inclusive loan discounts) and approximately $1.5 billion in deposits. The Company completed the systems conversion and merged FSB into Simmons First National Bank on September 4, 2015.
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Goodwill of $110.4 million was recorded as a result of the transaction. The merger allowed the Company’s entrance into the Tennessee market and served as a launching platform for expansion into adjacent areas. The Company is able to achieve cost savings by integrating the two companies and combining accounting, data processing, and other administrative functions. Further the Company will benefit from the addition of Community First's small-business lending platform while cross-selling its trust products in Community First’s market. This combination of factors gave rise to the goodwill recorded. The goodwill will not be deductible for tax purposes. A summary, at fair value, of the assets acquired and liabilities assumed in the Community First transaction, as of the acquisition date, is as follows:
(In thousands) |  | Acquired from Community First |  | Fair Value Adjustments |  | Fair Value
Assets Acquired |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 39,848 |  |  | $ | -- |  |  | $ | 39,848 |
Federal funds sold |  |  | 76,508 |  |  |  | -- |  |  |  | 76,508 |
Investment securities |  |  | 570,199 |  |  |  | (3,381 | ) |  |  | 566,818 |
Loans acquired, not covered by FDIC loss share |  |  | 1,163,398 |  |  |  | (26,855 | ) |  |  | 1,136,543 |
Allowance for loan losses |  |  | (14,635 | ) |  |  | 14,635 |  |  |  | -- |
Foreclosed assets not covered by FDIC loss share |  |  | 747 |  |  |  | -- |  |  |  | 747 |
Premises and equipment |  |  | 44,837 |  |  |  | (2,794 | ) |  |  | 42,043 |
Bank owned life insurance |  |  | 22,149 |  |  |  | -- |  |  |  | 22,149 |
Goodwill |  |  | 100 |  |  |  | (100 | ) |  |  | -- |
Core deposit intangible |  |  | -- |  |  |  | 11,273 |  |  |  | 11,273 |
Other intangibles |  |  | -- |  |  |  | 420 |  |  |  | 420 |
Deferred tax asset |  |  | 3,700 |  |  |  | 3,538 |  |  |  | 7,238 |
Other assets |  |  | 11,474 |  |  |  | -- |  |  |  | 11,474 |
Total assets acquired |  | $ | 1,918,325 |  |  | $ | (3,264 | ) |  | $ | 1,915,061 |
Liabilities Assumed |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing transaction accounts |  | $ | 103,825 |  |  | $ | -- |  |  | $ | 103,825 |
Interest bearing transaction accounts and savings deposits |  |  | 995,207 |  |  |  | -- |  |  |  | 995,207 |
Time deposits |  |  | 436,181 |  |  |  | 849 |  |  |  | 437,030 |
Total deposits |  |  | 1,535,213 |  |  |  | 849 |  |  |  | 1,536,062 |
Federal funds purchased and securities sold under agreement to repurchase |  |  | 16,230 |  |  |  | -- |  |  |  | 16,230 |
FHLB borrowings |  |  | 143,047 |  |  |  | 674 |  |  |  | 143,721 |
Subordinated debentures |  |  | 21,754 |  |  |  | (840 | ) |  |  | 20,914 |
Accrued interest and other liabilities |  |  | 8,769 |  |  |  | 601 |  |  |  | 9,370 |
Total liabilities assumed |  |  | 1,725,013 |  |  |  | 1,284 |  |  |  | 1,726,297 |
Equity |  |  | 193,312 |  |  |  | (193,312 | ) |  |  | -- |
Total equity assumed |  |  | 193,312 |  |  |  | (193,312 | ) |  |  | -- |
Total liabilities and equity assumed |  | $ | 1,918,325 |  |  | $ | (192,028 | ) |  | $ | 1,726,297 |
Net assets acquired |  |  |  |  |  |  |  |  |  |  | 188,764 |
Purchase price |  |  |  |  |  |  |  |  |  |  | 299,204 |
Goodwill |  |  |  |  |  |  |  |  |  | $ | 110,440 |
During 2015 the Company finalized its analysis of the acquired loans and subordinated debentures along with the other acquired assets and assumed liabilities. The Company’s operating results for 2016 and 2015 include the operating results of the acquired assets and assumed liabilities of Community First subsequent to the acquisition date.
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Summary of Unaudited Pro forma Information The unaudited pro forma information below for the years ended December 31, 2015 and 2014 gives effect to the Liberty and Community First acquisitions as if the acquisitions had occurred on January 1, 2014. Pro forma earnings for the year ended December 31, 2015 were adjusted to exclude $7.4 million of acquisition-related costs, net of tax, incurred by Simmons during 2015.The pro forma financial information is not necessarily indicative of the results of operations if the acquisitions had been effective as of this date.
|  | Years Ended December 31
(In thousands, except per share data) |  | 2015 |  | 2014
Revenue (1) |  | $ | 395,959 |  |  | $ | 390,606 |
Net income |  | $ | 85,773 |  |  | $ | 64,166 |
Earnings per share |  | $ | 2.68 |  |  | $ | 2.24 |
___________________________ (1) Net interest income plus noninterest income. Consolidated year-to-date 2015 results included approximately $46.0 million of revenue and $24.2 million of net income attributable to the Liberty acquisition and $77.3 million of revenue and $33.3 million of net income attributable to the Community First acquisition. Ozark Trust & Investment Corporation On October 29, 2015, Simmons First National Corporation completed the acquisition of Ozark Trust & Investment Corporation (“Ozark Trust”), headquartered in Springfield, Missouri, including its wholly-owned non-deposit trust company, Trust Company of the Ozarks (“TCO”). Simmons issued 339,290 shares of its common stock valued at approximately $17.9 million as of October 29, 2015, plus $5.8 million in cash in exchange for all outstanding shares of Ozark Trust common stock. Prior to the acquisition, Ozark Trust had over $1 billion in assets under management. The Company owned 1,000 shares of Ozark Trust’s common stock, which it acquired through its acquisition of Liberty in February 2015. The purchase price is allocated among the net assets of Ozark Trust acquired as appropriate, with the remaining balance being reported as goodwill. A summary, at fair value, of the assets acquired and liabilities assumed in the Ozark Trust transaction, as of the acquisition date, is as follows:
(In thousands) |  | Acquired from Ozark Trust |  | Fair Value Adjustments |  | Fair Value
Assets Acquired |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 1,756 |  |  | $ | -- |  |  | $ | 1,756 |
Investment securities |  |  | 241 |  |  |  | -- |  |  |  | 241 |
Premises and equipment |  |  | 1,126 |  |  |  | 418 |  |  |  | 1,544 |
Other intangibles |  |  | -- |  |  |  | 9,733 |  |  |  | 9,733 |
Other assets |  |  | 752 |  |  |  | 869 |  |  |  | 1,621 |
Total assets acquired |  | $ | 3,875 |  |  | $ | 11,020 |  |  | $ | 14,895 |
Liabilities Assumed |  |  |  |  |  |  |  |  |  |  |  |
Deferred tax liability |  |  | 63 |  |  |  | 4,175 |  |  |  | 4,238 |
Accrued and other liabilities |  |  | 302 |  |  |  | -- |  |  |  | 302 |
Total liabilities assumed |  |  | 365 |  |  |  | 4,175 |  |  |  | 4,540 |
Equity |  |  | 3,510 |  |  |  | (3,510 | ) |  |  | -- |
Total equity assumed |  |  | 3,510 |  |  |  | (3,510 | ) |  |  | -- |
Total liabilities and equity assumed |  | $ | 3,875 |  |  | $ | 665 |  |  | $ | 4,540 |
Net assets acquired |  |  |  |  |  |  |  |  |  |  | 10,355 |
Purchase price |  |  |  |  |  |  |  |  |  |  | 23,623 |
Goodwill |  |  |  |  |  |  |  |  |  | $ | 13,268 |
During 2015 the Company finalized its analysis of the acquired loans and subordinated debentures along with the other acquired assets and assumed liabilities. The Company’s operating results for 2016 and 2015 include the operating results of the acquired assets and assumed liabilities of Ozark Trust subsequent to the acquisition date.
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Delta Trust & Banking Corporation On August 31, 2014, Simmons First National Corporation completed the acquisition of Delta Trust & Banking Corporation (“Delta Trust”), headquartered in Little Rock, Arkansas, including its wholly-owned bank subsidiary Delta Trust & Bank (“DTB”). Simmons issued 1,629,515 shares of its common stock valued at approximately $65.0 million as of August 29, 2014, plus $2.4 million in cash in exchange for all outstanding shares of Delta Trust common stock. Prior to the acquisition, Delta Trust conducted banking business from 9 branches located in central, south and northwest Arkansas. Including the effects of the purchase accounting adjustments, the Company acquired approximately $417 million in assets, approximately $312 million in loans including loan discounts and approximately $355 million in deposits. The Company completed the systems conversion and merged DTB into Simmons Bank on October 24, 2014. A summary, at fair value, of the assets acquired and liabilities assumed in the Delta Trust transaction, as of the acquisition date, is as follows:
(In thousands) |  | Acquired from Delta Trust |  | Fair Value Adjustments |  | Fair Value
Assets Acquired |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 13,739 |  |  | $ | -- |  |  | $ | 13,739 |
Investment securities |  |  | 62,410 |  |  |  | (37 | ) |  |  | 62,373 |
Loans acquired, not covered by FDIC loss share |  |  | 326,829 |  |  |  | (15,149 | ) |  |  | 311,680 |
Allowance for loan losses |  |  | (6,008 | ) |  |  | 6,008 |  |  |  | -- |
Foreclosed assets not covered by FDIC loss share |  |  | 3,262 |  |  |  | (1,471 | ) |  |  | 1,791 |
Premises and equipment |  |  | 4,405 |  |  |  | (433 | ) |  |  | 3,972 |
Bank owned life insurance |  |  | 7,530 |  |  |  | -- |  |  |  | 7,530 |
Goodwill |  |  | 822 |  |  |  | (822 | ) |  |  | -- |
Core deposit intangible |  |  | -- |  |  |  | 4,318 |  |  |  | 4,318 |
Other intangibles |  |  | 137 |  |  |  | 5,003 |  |  |  | 5,140 |
Deferred tax asset |  |  | 1,859 |  |  |  | 558 |  |  |  | 2,417 |
Other assets |  |  | 5,807 |  |  |  | (1,381 | ) |  |  | 4,426 |
Total assets acquired |  | $ | 420,792 |  |  | $ | (3,406 | ) |  | $ | 417,386 |
Liabilities Assumed |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing transaction accounts |  | $ | 63,259 |  |  | $ | -- |  |  | $ | 63,259 |
Interest bearing transaction accounts and savings deposits |  |  | 200,596 |  |  |  | -- |  |  |  | 200,596 |
Time deposits |  |  | 91,507 |  |  |  | -- |  |  |  | 91,507 |
Total deposits |  |  | 355,362 |  |  |  | -- |  |  |  | 355,362 |
Fed funds purchased |  |  | 11,100 |  |  |  | -- |  |  |  | 11,100 |
FHLB borrowings |  |  | 11,106 |  |  |  | (129 | ) |  |  | 10,977 |
Accrued interest and other liabilities |  |  | 1,528 |  |  |  | -- |  |  |  | 1,528 |
Total liabilities assumed |  |  | 379,096 |  |  |  | (129 | ) |  |  | 378,967 |
Equity |  |  | 41,696 |  |  |  | (41,696 | ) |  |  | -- |
Total equity assumed |  |  | 41,696 |  |  |  | (41,696 | ) |  |  | -- |
Total liabilities and equity assumed |  | $ | 420,792 |  |  | $ | (41,825 | ) |  | $ | 378,967 |
Net assets acquired |  |  |  |  |  |  |  |  |  |  | 38,419 |
Purchase price |  |  |  |  |  |  |  |  |  |  | 67,441 |
Goodwill |  |  |  |  |  |  |  |  |  | $ | 29,022 |
During 2015 the Company finalized its analysis of the acquired loans along with the other acquired assets and assumed liabilities in this transaction. The Company’s operating results for 2016, 2015 and 2014 include the operating results of the acquired assets and assumed liabilities of Delta Trust subsequent to the acquisition date.
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The following is a description of the methods used to determine the fair values of significant assets and liabilities presented in the acquisitions above. Cash and due from banks, time deposits due from banks and federal funds sold – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets. Due from banks – time were acquired with an adjustment to fair value based on rates currently available to the Company for deposits in banks with similar maturities. Investment securities – Investment securities were acquired with an adjustment to fair value based upon quoted market prices if material. Otherwise, the carrying amount of these assets was deemed to be a reasonable estimate of fair value. Loans acquired – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns. The discount rate does not include a factor for credit losses as that has been included in the estimated cash flows. Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. Foreclosed assets held for sale – These assets are presented at the estimated present values that management expects to receive when the properties are sold, net of related costs of disposal. Premises and equipment – Bank premises and equipment were acquired with an adjustment to fair value, which represents the difference between the Company’s current analysis of property and equipment values completed in connection with the acquisition and book value acquired. Bank owned life insurance – Bank owned life insurance is carried at its current cash surrender value, which is the most reasonable estimate of fair value. Goodwill – The consideration paid as a result of the acquisition exceeded the fair value of the assets acquired, resulting in an intangible asset, goodwill. Goodwill established prior to the acquisitions, if applicable, was written off. Core deposit intangible – This intangible asset represents the value of the relationships that the acquired banks had with their deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base and the net maintenance cost attributable to customer deposits. Core deposit intangible established prior to the acquisitions, if applicable, was written off. Other intangibles – These intangible assets represent the value of the relationships that Delta Trust’s investment subsidiary, Community First’s and Delta Trust’s insurance subsidiaries, and Ozark Trust and Delta Trust’s trust department had with their customers. The fair value of these intangible assets was estimated based on a combination of discounted cash flow methodology and a market valuation approach. Other intangibles established prior to the acquisitions, if applicable, was written off. Deferred tax asset – The deferred tax asset is based on 39.225% of fair value adjustments related to the acquired assets and assumed liabilities and on a calculation of future tax benefits. The Company also recorded Liberty’s, Community First’s, Ozark Trust’s and Delta Trust’s remaining deferred tax assets and liabilities as of the acquisition date. Other assets – The fair value adjustment results from certain assets whose value was estimated to be less than book value, such as certain prepaid assets, receivables and other miscellaneous assets. Otherwise, the carrying amount of these assets was deemed to be a reasonable estimate of fair value. Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The Company performed a fair value analysis of the estimated weighted average interest rate of the certificates of deposits compared to the current market rates and recorded a fair value adjustment for the difference when material. Federal funds purchased and securities sold under agreement to repurchase – The carrying amount of federal funds purchased and securities sold under agreement to repurchase is a reasonable estimate of fair value based on the short-term nature of these liabilities.
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FHLB borrowings – The fair value of Federal Home Loan Bank borrowings is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities. Subordinated debentures – The fair value of subordinated debentures is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities. Accrued interest and other liabilities – The adjustment establishes a liability for unfunded commitments equal to the fair value of that liability at the date of acquisition.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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