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ACQUISITIONS: | 12 Months Ended
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Dec. 31, 2021
Business Combinations [Abstract] |
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET | ACQUISITIONS: On November 5, 2021, the Corporation completed its acquisition of Hancock Bancorp, Inc. and its banking subsidiary, Hancock Bank and Trust Company. Therefore, the results of Hancock Bancorp have been included in the results of operations beginning on November 5, 2021. Pursuant to the terms of the merger agreement, each issued and outstanding share of Hancock Bancorp, Inc. common stock, issued and outstanding, was converted into the right to receive $18.38 per share in cash. The aggregate value of the transaction was $31.36 million. Acquisition-related costs of $1.2 million are included in the Corporation's income statement for the year ended December 31, 2021. Goodwill of $7.5 million arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill is not deductible for income tax purposes as the transaction was accounted for as a tax-free exchange. The following table summarizes the consideration paid and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.
(Dollar amounts in thousands) | 2021 |  |  |  |
Consideration |  |  |  |  |
Cash consideration | $ | 31,358 |  |  |  |  |
Fair value of total consideration transferred | $ | 31,358 |  |  |  |  |
Assets acquired |  |  |  |  |
Cash | $ | 3,046 |  |  |  |  |
Investment securities available-for-sale | 57,054 |  |  |  |  |
Federal funds sold | 10,470 |  |  |  |  |
Bank owned life insurance | 9,753 |  |  |  |  |
Federal Home Loan Bank stock | 1,362 |  |  |  |  |
Loans | 227,827 |  |  |  |  |
Premises and equipment | 8,180 |  |  |  |  |
Core deposit intangibles | 652 |  |  |  |  |
Other assets | 4,567 |  |  |  |  |
Total assets acquired | 322,911 |  |  |  |  |
Liabilities assumed |  |  |  |  |
Deposits | 286,098 |  |  |  |  |
FHLB advances | 11,042 |  |  |  |  |
Other liabilities | 1,956 |  |  |  |  |
Total liabilities assumed | 299,096 |  |  |  |  |
Net identifiable assets | 23,815 |  |  |  |  |
Goodwill | $ | 7,543 |  |  |  |  |
The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, the Corporation believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to guidance relating to purchase credit impaired loans, which have shown evidence of credit deterioration since origination. The following table presents supplemental pro forma information as if the acquisition had occurred at the beginning of 2020. The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, interest expense on deposits acquired, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates.
| Year ended December 31,
(Dollar amounts in thousands, except per share data) | 2021 |  | 2020
Net interest income | $ | 150,806 |  |  | $ | 156,051 |
Net income | $ | 53,714 |  |  | $ | 55,958 |
Basic and diluted earnings per share | $ | 4.07 |  |  | $ | 4.08 |
The fair value of purchased financial assets with credit deterioration was $12.9 million on the date of acquisition. The gross contractual amounts receivable relating to the purchased financial assets with credit deterioration was $18.3 million. The Corporation estimates, on the date of acquisition, that $4.4 million of the contractual cash flows specific to the purchased financial assets with credit deterioration will not be collected.

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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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