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Business Combinations (Tables) | 12 Months Ended
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Dec. 31, 2020
Business Combinations [Abstract] |
Preliminary fair value estimates of assets acquired and liabilities assumed and adjustments | The fair value estimates of the assets acquired and liabilities assumed in the mergers were as follows:
| Premier Merger |  | Puget Sound Merger
| (In thousands)
Assets |  |  |
Cash and cash equivalents | $ | 22,534 |  |  | $ | 25,889 |
Interest earning deposits | 3,309 |  |  | 54,247 |
Investment securities available for sale | 4,493 |  |  | 80,353 |
Loans receivable (1) | 330,158 |  |  | 388,462 |
Other real estate owned | 1,796 |  |  | — |
Premises and equipment, net | 3,053 |  |  | 732 |
Federal Home Loan Bank stock, at cost | 1,120 |  |  | 623 |
Bank owned life insurance | 10,852 |  |  | 6,264 |
Accrued interest receivable | 1,006 |  |  | 1,448 |
Prepaid expenses and other assets | 1,603 |  |  | 1,354 |
Other intangible assets | 7,075 |  |  | 11,270 |
Total assets acquired | $ | 386,999 |  |  | $ | 570,642 |
Liabilities |  |  |
Deposits | $ | 318,717 |  |  | $ | 505,885 |
Federal Home Loan Bank advances | 16,000 |  |  | — |
Securities sold under agreement to repurchase | 462 |  |  | — |
Accrued expenses and other liabilities | 5,935 |  |  | 2,504 |
Total liabilities acquired | $ | 341,114 |  |  | $ | 508,389 |
Fair value of net assets acquired | $ | 45,885 |  |  | $ | 62,253 |
(1) The outstanding loan balance acquired in the Premier Merger and Puget Sound Merger was $335.4 million and $392.7 million, respectively, at the acquisition date. Goodwill represents the excess of the consideration transferred over the estimated fair value of the net assets acquired and liabilities assumed. A summary of the net assets purchased and the estimated fair value adjustments and resulting goodwill recognized from the mergers are presented in the following table:
| Premier Merger |  | Puget Sound Merger
| (In thousands)
Consideration transferred | $ | 99,275 |  |  | $ | 130,773 |
Cost basis of net assets on merger date | $ | 40,629 |  |  | $ | 54,405 |
Fair value adjustments: |  |  |
Investment securities | (135) |  |  | (348) |
Total loans receivable, net | (111) |  |  | 1,400 |
Other real estate owned | (1,017) |  |  | — |
Premises and equipment | 1,312 |  |  | (121) |
Other intangible assets | 7,075 |  |  | 9,207 |
Prepaid expenses and other assets | (1,912) |  |  | (2,282) |
Deposits | (310) |  |  | (62) |
Accrued expenses and other liabilities | 354 |  |  | 54 |
Fair value of net assets on merger date | $ | 45,885 |  |  | $ | 62,253 |
Goodwill recognized from the mergers | $ | 53,390 |  |  | $ | 68,520 |
Unaudited pro forma information | The following table presents certain pro forma information, for illustrative purposes only, for the year ended December 31, 2018 as if both the Premier Merger and Puget Sound Merger had occurred on January 1, 2017. The estimated pro forma information combines the historical results of Premier Commercial and Puget Sound with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the mergers occurred on January 1, 2017. In particular, the pro forma information does not consider any changes to the ACL on loans from recorded loans at fair value. Additionally, Heritage expected to achieve further operating savings and other business synergies, including interest income growth, as a result of the mergers which are not reflected in the pro forma amounts in the following table. As a result, actual amounts will differ from the pro forma information presented.
| Pro Forma for the Year Ended December 31, 2018
| (In thousands, except per share amounts)
Net interest income | $ | 194,989 |
Net income | 69,515 |
Basic earnings per common share | 1.88 |
Dilutive Earnings per common share | 1.87 |
The Company believes that the historical Premier Commercial and Puget Sound operating results, individually or collectively, are not considered of enough significance to be meaningful to the Company’s results of operations.

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121647850&loc=d3e4845-128472 + Details
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