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Acquisition | 12 Months Ended
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Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract] |
Acquisition | (3) Acquisition On October 1, 2022, the Company acquired 100% of the outstanding common shares of Freedom Bancshares, Inc., in exchange for $33.4 million of cash. Freedom Bancshares, Inc. was the holding company of Freedom Bank. Freedom Bank was founded in 2006 and operated out of a single location in Overland Park, Kansas. The acquisition was effected through the merger of Freedom Bancshares, Inc. with and into the Bank. The purchase price was financed with $10.0 million of debt issued by Company and through cash received from a dividend from the Bank. The transaction was accounted for using the acquisition method of accounting, and as such, assets acquired and liabilities assumed were recorded at their estimated fair value on the acquisition date. The fair values are subject to change if additional information becomes available during the measurement period. Additionally, the final goodwill calculation may be impacted by the completion of the final tax return for Freedom Bancshares, Inc. and Freedom Bank which is still in process, along with the review of certain contracts acquired or assumed. Acquired loans were recorded at fair value at the acquisition date and no separate valuation allowance was established. No purchased credit impaired loans were acquired. Market value adjustments are accreted or amortized on a level yield basis over the expected term of the asset or liability. Additionally, the Company recorded a core deposit intangible of $4.2 million. The core deposit intangible is amortized on an accelerated basis over the estimated useful life of the deposits. Goodwill of $14.7 million from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the banks. The goodwill is not deductible for income tax purposes. The Company incurred $3.4 million of acquisition related costs relating to the acquisition during 2022 of which $3.1 million was deductible for income tax purposes. Results of the operations of the acquired business are included in the income statement from the effective date of the acquisition. The following table summarizes the consideration paid for Freedom Bancshares, Inc. and the amounts of the assets acquired and liabilities assumed at the acquisition date: Schedule of Assets and Liabilities Acquisition
|  | As of |
(Dollars in thousands) |  | October 1, 2022 |
Cash paid in acquisition |  | $ | 33,350 |
Assets acquired: |  |  |  |
Cash and cash equivalents |  |  | 32,778 |
Investment securities |  |  | 33,126 |
Bank stocks |  |  | 699 |
Loans |  |  | 113,910 |
Bank owned life insurance |  |  | 4,374 |
Premises and equipment |  |  | 3,782 |
Core deposit intangibles |  |  | 4,170 |
Other |  |  | 7,194 |
Total assets acquired |  |  | 200,033 |
Liabilities assumed: |  |  |  |
Deposits |  |  | 150,410 |
FHLB advances |  |  | 7,000 |
Other borrowings |  |  | 22,198 |
Other liabilities |  |  | 1,742 |
Total liabilities assumed |  |  | 181,350 |
Net assets acquired |  |  | 18,683 |
Goodwill |  | $ | 14,667 |
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 Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables, which have shown evidence of credit deterioration since origination were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans. Receivables acquired that were not subject to these requirements include non-impaired loans with a fair value and gross contractual amounts receivable of $113.9 million and $118.1 million on the date of acquisition. Unaudited pro forma consolidated operating results for the years ended December 31, 2022 and December 31, 2021, as if the acquisition was consummated on January 1 of that year are as follows: Schedule of Unaudited Pro Forma Consolidated Operating Acquisition
|  | 2022 |  |  | 2021 |
(Dollars in thousands, except per share amounts) |  | Years ended December 31, |
|  | 2022 |  |  | 2021 |
Net interest income |  | $ | 44,750 |  |  | $ | 45,942 |
Net earnings |  |  | 9,098 |  |  |  | 19,922 |
Earnings per share: |  |  |  |  |  |  |  |
Basic |  |  | 1.74 |  |  |  | 3.81 |
Diluted |  |  | 1.73 |  |  |  | 3.80 |

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- Definition The entire disclosure for asset acquisition. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 50 -Section 15 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=6911878&loc=d3e8732-128492 + Details
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- References No definition available. + Details
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