NOTE 5 – SBM ACQUISITION

On October 16, 2015, the Company completed its acquisition of SBM, as previously reported. For the six months ended June 30, 2016, the Company made certain measurement-period adjustments to its initial purchase accounting that decreased goodwill reported at December 31, 2015 by $960,000. These measurement-period adjustments increased the previously reported loan balance by $137,000, increased acquired interest receivable and other assets by $157,000, and increased acquired deferred tax assets $666,000. The measurement-period adjustments will not have a material effect on current or future years' net income and were presented and disclosed prospectively as of June 30, 2016 in accordance with ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.

At June 30, 2016, the Company's accounting for the acquisition of SBM was completed. The following table summarizes the fair value of the assets acquired and liabilities assumed:



	As Acquired		Fair Value Adjustments (Previously Reported)			Measurement-Period Adjustments		As Recorded at Acquisition
Consideration Paid:
Cash								$	26,125
Company common stock (2,749,762 shares at $39.48 per share)								108,561
Non-qualified stock options								1,990
Total consideration paid								136,676
Recognized identifiable assets acquired and liabilities assumed, at fair value:
Loans and loans held for sale	$	639,390	$	(11,497	)	$	137	628,030
Cash and due from banks	86,042		—			—		86,042
Investments	39,716		26			—		39,742
Deferred tax assets	26,293		(1,177		)	666		25,782
Premises and equipment	16,851		7,093			—		23,944
OREO	2,530		(1,801		)	—		729
Core deposit intangible assets	—		6,608			—		6,608
Other assets	5,421		(170		)	157		5,408
Deposits and borrowings	719,640		1,546			—		721,186
Other liabilities	8,512		(198		)	—		8,314
Total identified assets acquired and liabilities assumed, at fair value	$	88,091	$	(2,266	)	$	960	86,785
Goodwill								$	49,891