Note 12: Business Combinations

9 Months Ended

Mar. 31, 2018

Note 12: Acquisitions

On February 23, 2018, the Company completed its acquisition of Southern Missouri Bancshares, Inc. (“Bancshares”), and its wholly-owned subsidiary, Southern Missouri Bank of Marshfield (“SMB-Marshfield”), in a stock and cash transaction. The conversion of data systems took place on March 17, 2018. The Company acquired SMB-Marshfield 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. Through March 31, 2018, the Company incurred a total $638,000 of third-party acquisition-related costs with $458,000 and $613,000 being included in noninterest expense in the Company's consolidated statement of income for the three- and nine- months ended March 31, 2018, respectively. The goodwill of $4.4 million arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of the Company and SMB-Marshfield. Total goodwill was assigned to the acquisition of the bank holding company.

The following table summarizes the consideration paid for Bancshares and SMB-Marshfield, and the amounts of assets acquired and liabilities assumed recognized at the acquisition date:


Cash	$3,860
Common stock, at fair value	12,955
Total consideration	$16,815

Recognized amounts of identifiable assets acquired
and liabilities assumed

Cash and cash equivalents	$2,359
Interest bearing time deposits	1,450
Investment securities	5,557
Loans	68,258
Premises and equipment	3,409
BOLI	2,271
Identifiable intangible assets	1,345
Miscellaneous other assets	1,897

Deposits	(68,152)
FHLB Advances	(5,344)
Miscellaneous other liabilities	(683)

Total identifiable net assets	12,367
Goodwill	$4,448