Acquisitions & Divestitures

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Acquisitions and Divestitures

ACQUISITIONS & DIVESTITURES

Acquisition of Jefferson County Bancshares, Inc.

On October 10, 2016, the Company entered into a definitive merger agreement to acquire 100% of Jefferson County Bancshares, Inc. (“JCB”). JCB and its wholly-owned subsidiary, Eagle Bank and Trust Company of Missouri, have $937 million in assets, $699 million in loans, and $767 million in deposits as of December 31, 2016. JCB operates 13 full service retail and commercial banking offices in metropolitan St. Louis and Perry Counties. At the closing of the acquisition on February 10, 2017, JCB shareholders received, based on their election, cash consideration in an amount of $85.39 per share of JCB common stock or 2.75 shares of EFSC common stock per share of JCB common stock, subject to allocation and proration procedures. Aggregate consideration at closing was 3.3 million shares of EFSC common stock and approximately $29.3 million in cash paid to JCB shareholders and holders of JCB stock options. Based on EFSC’s closing stock price of $42.95 on February 10, 2017, the overall transaction had a value of approximately $171.0 million, including JCB’s common stock and stock options.  The Company also recognized $1.4 million of  acquisition related costs that were recorded in noninterest expense in the statement of operations for the year ended December 31, 2016.

The acquisition of JCB will be accounted for as a business combination using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. The valuation of assets acquired and liabilities assumed has not yet been finalized and as a result certain disclosures are not available.  Due to the timing of the acquisition date, the Company has performed limited valuation procedures, and the valuation of nearly all assets acquired and liabilities assumed is incomplete.