Acquisition Activity

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Acquisition Activity

Acquisition Activity

On February 29, 2012, BKU completed the acquisition of Herald National Bank ("Herald") for a purchase price of $65 million consisting of cash of $25 million, 1,676,060 shares of common stock valued at $39 million and stock options and warrants valued at $1 million. The acquisition of Herald was determined to be a business combination and was accounted for using the acquisition method of accounting; accordingly, the assets acquired and liabilities assumed were recorded at their estimated fair values at the acquisition date.

The estimated fair values of assets acquired and liabilities assumed totaled $508 million and $438 million, respectively, resulting in the recognition of a gain of $5.3 million on the acquisition of 100% of Herald, representing the excess of the fair value of net assets acquired over the value of consideration issued. Pursuant to the terms of the merger agreement between BKU and Herald, the determination of the final purchase price was dependent on the price of BKU's common stock for the ten trading days preceding the merger. A decline in the stock price between the execution of the agreement and consummation of the acquisition led to this gain, which is included in the consolidated statement of income line item "other non-interest income" for the year ended December 31, 2012.