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Note 16: Acquisitions
 12 Months Ended
Jun. 30, 2017
Notes  
Note 16: Acquisitions

NOTE 16: Acquisitions

 

               

On June 16, 2017, the Company completed its acquisition of Tammcorp, Inc. (Tammcorp) and its subsidiary, Capaha Bank (Capaha) in a stock and cash transaction.  Capaha was merged into the Company’s bank subsidiary, Southern Bank, at acquisition. The Company acquired Capaha primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. The fair value of loans acquired is $152.2 million, all of which is expected to be collected.  Through June 30, 2017, the Company incurred $635,000 in third-party acquisition-related costs, and an additional $50,000 in additional compensation expenses. Expenses totaling $685,000 are included in noninterest expense in the Company’s consolidated statement of income for the year ended June 30, 2017, with no comparable expenses in the prior period. A note payable of $3.7 million was contractually required to be repaid on the date of acquisition. The goodwill of $4.1 million arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of the Company and Capaha. Goodwill from this transaction was assigned to the acquisition of the bank holding company, and is not expected to be deductible for tax purposes.

 

The following table summarizes the consideration paid for Tammcorp and Capaha, and the amounts of assets acquired and liabilities assumed recognized at the acquisition date:

 

 

 

Cash

   $              11,109 

Common stock, at fair value

                   10,965 

     Total consideration

   $              22,074 

Recognized amounts of identifiable assets acquired

     and liabilities assumed

Cash and cash equivalents

   $                9,373 

Interest bearing time deposits

                        747 

Investment securities

                     9,104 

Loans

                 152,169 

Premises and equipment

                     7,520 

BOLI

                     3,970 

Identifiable intangible assets

                     4,100 

Miscellaneous other assets

                     2,240 

Deposits

               (166,780)

Notes Payable

                   (3,650)

Miscellaneous other liabilities

                      (795)

     Total identifiable net assets

                   17,998 

          Goodwill

   $                4,076