Business Combinations (Tables)

12 Months Ended

Sep. 30, 2019

For illustrative purposes only, the following table presents certain unaudited pro forma information for the years ended September 30, 2019 and 2018. This unaudited estimated pro forma information was calculated as if South Sound Bank had been acquired as of the beginning of the fiscal year ended September 30, 2018. The unaudited estimated pro forma information combines the historical results of South Sound Bank 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 transaction occurred at the beginning of the fiscal year ended September 30, 2018. The unaudited pro forma information does not consider any changes to the provision for loan losses resulting from recording loans at fair value. Additionally, the Company expects to achieve further operating cost savings and other business synergies, including revenue growth as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented.



	Pro Forma for the Year Ended September 30,
	2019		2018
	(Dollars in thousands, except per share amounts)
Total revenues (net interest income plus non-interest income)	$	65,501	$	59,184
Net income	24,385		18,825
Basic net income per common share	2.93		2.28
Diluted net income per common share	2.88		2.23

The following table summarizes the fair value of consideration paid, the estimated fair values of assets acquired and liabilities assumed as of the acquisition date, and the resulting goodwill relating to the transaction:



	At October 1, 2018
	Book Value		Fair Value Adjustment			Estimated Fair Value
	(Dollars in thousands)
Total acquisition consideration						$	35,170

Recognized amounts of identifiable assets acquired and liabilities assumed
Identifiable assets acquired:
Cash and cash equivalents	$	21,187	$	—		21,187
CDs held for investment	2,973		—			2,973
FHLB stock	205		—			205
Investment securities held to maturity	19,891		(189		)	19,702
Investment securities available for sale	5,022		—			5,022
Loans receivable	123,627		(2,083		)	121,544
Premises and equipment	3,225		112			3,337
OREO	25		—			25
Accrued interest receivable	554		—			554
BOLI	2,629		—			2,629
CDI	—		2,483			2,483
Servicing rights	285		(4		)	281
Other assets	1,087		(511		)	576
Total assets	180,710		(192		)	180,518

Liabilities assumed:
Deposits	151,378		160			151,538
Other liabilities and accrued expenses	3,291		—			3,291
Total liabilities assumed	154,669		160			154,829
Total identifiable net assets acquired	$	26,041	$	(352	)	25,689
Goodwill recognized						$	9,481