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BUSINESS COMBINATIONS (Tables) | 6 Months Ended
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Mar. 31, 2022
BUSINESS COMBINATIONS |
Fair Value of Assets Received and Liabilities Assumed | A preliminary summary of the fair value of assets received and liabilities assumed are as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | As Recorded |  | Fair Value |  | As Recorded
(in thousands) | ​ | by Savoy | ​ | Adjustments | ​ | by Hanover
Assets | ​ |  | ​ | ​ |  | ​ |  |  | ​
Cash and due from banks | ​ | $ | 59,155 | ​ | $ | — |  | $ | 59,155
Investment securities available-for-sale | ​ |  | 239 | ​ |  | — |  |  | 239
Loans held for sale | ​ |  | 3,883 | ​ |  | — |  |  | 3,883
Loans held for investment | ​ |  | 569,251 | ​ |  | 8,612 | (a) |  | 577,863
Premises and equipment, net | ​ |  | 234 | ​ |  | (22) | (b) |  | 212
Core deposit intangible | ​ |  | — | ​ |  | 490 | (c) |  | 490
Accrued interest receivable | ​ |  | 5,171 | ​ |  | (650) | (d) |  | 4,521
Other assets | ​ |  | 10,432 | ​ |  | (2,925) | (e) |  | 7,507
Total assets acquired | ​ | $ | 648,365 | ​ | $ | 5,505 | ​ |  | 653,870
Liabilities | ​ |  |  | ​ |  |  |  |  |
Deposits | ​ | $ | 340,215 | ​ | $ | 2,527 | (f) | ​ | 342,742
Borrowings | ​ |  | 258,247 | ​ |  | 301 | (g) |  | 258,548
Accrued interest payable | ​ |  | 1,050 | ​ |  | — |  |  | 1,050
Other liabilities and accrued expenses | ​ |  | 3,817 | ​ |  | (342) | (h) |  | 3,475
Total liabilities assumed | ​ | $ | 603,329 | ​ | $ | 2,486 |  |  | 605,815
Net assets acquired | ​ |  |  | ​ |  |  |  |  | 48,055
Total consideration | ​ |  |  | ​ |  |  |  |  | 65,512
Goodwill | ​ |  |  | ​ |  |  |  | $ | 17,457
(a) | Represents the fair value adjustments on net book value of loans, which includes an interest rate mark and credit mark adjustment, the write-off of deferred fees/costs and premiums and the elimination of Savoy’s allowance for loan losses.
(b) | Represents the fair value adjustments to reflect the fair value of premises and equipment.
(c) | Represents the fair value of core deposit intangible recorded, which will be amortized on an accelerated basis over the estimated average life of the deposit base.
(d) | Represents an adjustment to accrued interest receivable acquired.
(e) | Represents an adjustment to other assets acquired. The largest adjustment was the net deferred tax assets resulting from the fair value adjustment related to the acquired assets, liabilities assumed, and identifiable intangible assets recorded.
(f) | Represents the fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.
(g) | Represents the fair value adjustments on an FHLB borrowing, which will be treated as a reduction to interest expense over the life of the borrowing.
(h) | Represents an adjustment to other liabilities assumed.
Consideration Paid | A summary of total consideration paid is as follows:
​ | ​ | ​ | ​
(in thousands, except share data) |  |  | ​
Common stock issued (1,357,567 shares issued) | ​ | $ | 32,521
Cash payments to common shareholders | ​ |  | 32,991
Total consideration paid | ​ | $ | 65,512
Loans Acquired in Savoy Acquisition | The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the Savoy acquisition as of the merger date:
​ | ​ | ​ | ​
(in thousands) |  | ​ | ​
Contractually required principal and interest at acquisition | ​ | $ | 14,416
Contractual cash flows not expected to be collected (non-accretable discount) |  | ​ | (3,467)
Expected cash flows at acquisition |  | ​ | 10,949
Interest component of expected cash flows (accretable discount) |  | ​ | (540)
Fair value of acquired purchased credit impaired loans | ​ | $ | 10,409

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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=123413009&loc=d3e4845-128472 + Details
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