NOTE

ACQUISITIONS

Southwest Bancorp, Inc.

October 19, 2017,

the Company completed the acquisition of Southwest Bancorp, Inc. (“OKSB”) headquartered in Stillwater, Oklahoma, including its wholly-owned bank subsidiary, Bank SNB. The Company issued

14,488,604

shares of its common stock valued at approximately

$431.4

million as of

October 19, 2017,

plus

$95.0

million in cash in exchange for all outstanding shares of OKSB common stock.

Prior to the acquisition, OKSB conducted banking business from

branches located in Texas, Oklahoma, Kansas and Colorado. In addition, OKSB owned a loan production office in Denver, Colorado. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately

$2.7

billion in assets, including approximately

$2.0

billion in loans (inclusive of loan discounts) and approximately

$2.0

billion in deposits. The systems conversion is planned to occur during

May 2018,

at which time the subsidiary bank will be merged into Simmons Bank.

Goodwill of

$228.9

million was recorded as a result of the transaction. The acquisition allowed us to enter the Texas, Oklahoma, and Colorado banking markets and it also strengthened our Kansas franchise and our product offerings in the healthcare and real estate industries, all of which 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 OKSB transaction, as of the acquisition date, is as follows:

(In thousands)	Acquired from OKSB			Fair Value Adjustments			Fair Value

Assets Acquired
Cash and due from banks	$	79,517		$	--		$	79,517
Investment securities		485,468			(1,295	)		484,173
Loans acquired		2,039,524			(43,071	)		1,996,453
Allowance for loan losses		(26,957	)		26,957			--
Foreclosed assets		6,284			(1,127	)		5,157
Premises and equipment		21,210			5,457			26,667
Bank owned life insurance		28,704			--			28,704
Goodwill		13,545			(13,545	)		--
Core deposit intangible		1,933			40,191			42,124
Other intangibles		3,806			--			3,806
Other assets		33,455			(8,929	)		24,526
Total assets acquired	$	2,686,489		$	4,638		$	2,691,127

Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	485,971		$	--		$	485,971
Interest bearing transaction accounts and savings deposits		869,252			--			869,252
Time deposits		613,345			(2,213	)		611,132
Total deposits		1,968,568			(2,213	)		1,966,355
Securities sold under agreement to repurchase		11,256			--			11,256
Other borrowings		347,000			--			347,000
Subordinated debentures		46,393			--			46,393
Accrued interest and other liabilities		17,440			5,364			22,804
Total liabilities assumed		2,390,657			3,151			2,393,808
Equity		295,832			(295,832	)		--
Total equity assumed		295,832			(295,832	)		--
Total liabilities and equity assumed	$	2,686,489		$	(292,681	)	$	2,393,808
Net assets acquired								297,319
Purchase price								526,251
Goodwill							$	228,932

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 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

2017

include the operating results of the acquired assets and assumed liabilities of OKSB subsequent to the acquisition date.

First Texas BHC, Inc.

October 19, 2017,

the Company completed the acquisition of First Texas BHC, Inc. (“First Texas”) headquartered in Fort Worth, Texas, including its wholly-owned bank subsidiary, Southwest Bank. The Company issued

12,999,840

shares of its common stock valued at approximately

$387.1

million as of

October 19, 2017,

plus

$70.0

million in cash in exchange for all outstanding shares of First Texas common stock.

Prior to the acquisition, First Texas operated

banking centers, a trust office and a limited service branch in north Texas and a loan production office in Austin, Texas. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately

$2.4

billion in assets, including approximately

$2.2

billion in loans (inclusive of loan discounts) and approximately

$1.9

billion in deposits. The Company completed the systems conversion and merged First Texas into Simmons Bank in

February 2018.

Goodwill of

$238.0

million was recorded as a result of the transaction. The acquisition allowed us to enter the Texas banking markets and it also strengthened our specialty product offerings in the area of SBA lending and trust services, all of which 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 First Texas transaction, as of the acquisition date, is as follows:

(In thousands)	Acquired from First Texas			Fair Value Adjustments			Fair Value

Assets Acquired
Cash and due from banks	$	59,277		$	--		$	59,277
Investment securities		81,114			(596	)		80,518
Loans acquired		2,246,212			(37,834	)		2,208,378
Allowance for loan losses		(20,864	)		20,664			(200	)
Premises and equipment		24,864			10,123			34,987
Bank owned life insurance		7,190			--			7,190
Goodwill		37,227			(37,227	)		--
Core deposit intangible		--			7,328			7,328
Other assets		18,263			12,703			30,966
Total assets acquired	$	2,453,283		$	(24,839	)	$	2,428,444

Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	74,410		$	--		$	74,410
Interest bearing transaction accounts and savings deposits		1,683,298			--			1,683,298
Time deposits		124,233			(283	)		123,950
Total deposits		1,881,941			(283	)		1,881,658
Securities sold under agreement to repurchase		50,000			--			50,000
Other borrowings		235,000			--			235,000
Subordinated debentures		30,323			(811	)		29,512
Accrued interest and other liabilities		11,727			1,463			13,190
Total liabilities assumed		2,208,991			369			2,209,360
Equity		244,292			(244,292	)		--
Total equity assumed		244,292			(244,292	)		--
Total liabilities and equity assumed	$	2,453,283		$	(243,923	)	$	2,209,360
Net assets acquired								219,084
Purchase price								457,103
Goodwill							$	238,019

one

year of the acquisition. Therefore, adjustments to the estimated amounts and carrying values

may

occur.

The Company’s operating results for

2017

include the operating results of the acquired assets and assumed liabilities of First Texas subsequent to the acquisition date.

Summary of Unaudited Pro forma Information

The unaudited pro forma information below for the years ended

December 31, 2017

and

2016

gives effect to the OKSB and First Texas acquisitions as if the acquisitions had occurred on

January

2016.

Pro forma earnings for the year ended

December 31, 2017

were adjusted to exclude

$9.4

million of acquisition-related costs, net of tax, incurred by Simmons during

2017.

The pro forma financial information is

not

necessarily indicative of the results of operations if the acquisitions had been effective as of this date.

(In thousands, except per share data)	2017		2016
Revenue (1)	$	654,358	$	620,461
Net income	$	130,947	$	136,199
Diluted earnings per share	$	1.43	$	1.52

_________________________

(

) Net interest income plus noninterest income.

Consolidated year-to-date

2017

results included approximately

$29.2

million of revenue and

$10.5

million of net income attributable to the OKSB acquisition and

$27.6

million of revenue and

$5.7

million of net income attributable to the First Texas acquisition.

Hardeman County Investment Company, Inc.

May 15, 2017,

the Company completed the acquisition of Hardeman County Investment Company, Inc. (“Hardeman”), headquartered in Jackson, Tennessee, including its wholly-owned bank subsidiary, First South Bank. The Company issued

1,599,940

shares of its common stock valued at approximately

$42.6

million as of

May 15, 2017,

plus

$30.0

million in cash in exchange for all outstanding shares of Hardeman common stock.

Prior to the acquisition, Hardeman conducted banking business from

branches located in western Tennessee. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately

$462.9

million in assets, including approximately

$251.6

million in loans (inclusive of loan discounts) and approximately

$389.0

million in deposits. The Company completed the systems conversion and merged Hardeman into Simmons Bank in

September 2017.

As part of the systems conversion,

five

existing Simmons Bank and First South Bank branches were consolidated or closed.

Goodwill of

$29.4

million was recorded as a result of the transaction. The merger strengthened the Company’s position in the western Tennessee market, and the Company will be 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

not

be deductible for tax purposes.

A summary, at fair value, of the assets acquired and liabilities assumed in the Hardeman transaction, as of the acquisition date, is as follows:

(In thousands)	Acquired from Hardeman			Fair Value Adjustments			Fair Value

Assets Acquired
Cash and due from banks	$	8,001		$	--		$	8,001
Interest bearing balances due from banks - time		1,984			--			1,984
Investment securities		170,654			(285	)		170,369
Loans acquired		257,641			(5,992	)		251,649
Allowance for loan losses		(2,382	)		2,382			--
Foreclosed assets		1,083			(452	)		631
Premises and equipment		9,905			1,258			11,163
Bank owned life insurance		7,819			--			7,819
Goodwill		11,485			(11,485	)		--
Core deposit intangible		--			7,840			7,840
Other intangibles		--			830			830
Other assets		2,639			(1	)		2,638
Total assets acquired	$	468,829		$	(5,905	)	$	462,924

Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	76,555		$	--		$	76,555
Interest bearing transaction accounts and savings deposits		214,872			--			214,872
Time deposits		97,917			(368	)		97,549
Total deposits		389,344			(368	)		388,976
Securities sold under agreement to repurchase		17,163			--			17,163
Other borrowings		3,000			--			3,000
Subordinated debentures		6,702			--			6,702
Accrued interest and other liabilities		1,891			1,924			3,815
Total liabilities assumed		418,100			1,556			419,656
Equity		50,729			(50,729	)		--
Total equity assumed		50,729			(50,729	)		--
Total liabilities and equity assumed	$	468,829		$	(49,173	)	$	419,656
Net assets acquired								43,268
Purchase price								72,639
Goodwill							$	29,371

one

year of the acquisition. Therefore, adjustments to the estimated amounts and carrying values

may

occur.

The Company’s operating results for

2017

include the operating results of the acquired assets and assumed liabilities of Hardeman subsequent to the acquisition date.

Citizens National Bank

September 9, 2016,

the Company completed the acquisition of Citizens National Bank (“Citizens”), headquartered in Athens, Tennessee. The Company issued

1,671,482

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

branches located in east Tennessee. Including the effects of the acquisition method accounting adjustments, the Company acquired approximately

$585.1

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 in

October 2016.

Goodwill of

$23.4

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		$	(351	)	$	131,116
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		$	(55	)	$	585,149

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			1,530			5,088
Total liabilities assumed		530,648			1,577			532,225
Equity		54,556			(54,556	)		--
Total equity assumed		54,556			(54,556	)		--
Total liabilities and equity assumed	$	585,204		$	(52,979	)	$	532,225
Net assets acquired								52,924
Purchase price								76,300
Goodwill							$	23,376

During

2017,

the Company finalized its analysis of the loans acquired along with the other acquired assets and assumed liabilities in this transaction.

The Company’s operating results for

2017

and

2016

include the operating results of the acquired assets and assumed liabilities of Citizens subsequent to the acquisition date.

Liberty Bancshares, Inc.

February 27, 2015,

the Company completed the acquisition of Liberty Bancshares, Inc. (“Liberty”), headquartered in Springfield, Missouri, including its wholly-owned bank subsidiary Liberty Bank (“LB”). The Company issued

10,362,674

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

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 Bank in

April 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.

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 all periods presented include the operating results of the acquired assets and assumed liabilities of Liberty subsequent to the acquisition date.

Community First Bancshares, Inc.

February 27, 2015,

the Company 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

13,105,830

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

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 of loan discounts) and approximately

$1.5

billion in deposits. The Company completed the systems conversion and merged FSB into Simmons Bank in

September 2015.

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. Furthermore, 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 all periods presented include the operating results of the acquired assets and assumed liabilities of Community First subsequent to the acquisition date.

Ozark Trust & Investment Corporation

October 29, 2015,

the Company 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

678,580

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

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 all periods presented include the operating results of the acquired assets and assumed liabilities of Ozark Trust subsequent to the acquisition date.

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.

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

– 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 Citizens and Ozarks Trust had with their trust customers and Hardeman and Community First had with their insurance customers. The fair value of these intangible assets was estimated based on a combination of discounted cash flow methodology and a market valuation approach. Intangible assets for the OKSB acquisition represent mortgage servicing rights. Other intangibles established prior to the acquisitions, if applicable, were written off.

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.

FHLB and other borrowings

– The fair value of Federal Home Loan Bank and other 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. Due to the floating rate nature of the debenture, the fair value approximates book value as of the date acquired.

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.