Merger Transaction

6 Months Ended

Jun. 30, 2020

Effective at the close of business on November 7, 2019, First Guaranty completed its acquisition of 100% of the outstanding shares of Union Bancshares, Incorporated, a Louisiana corporation ("Union"), a single bank holding company headquartered in Marksville, Louisiana and its wholly owned subsidiary, Union Bank for $43.4 million in cash. This acquisition allowed First Guaranty to expand its presence into the Central Louisiana market area. The purchase price resulted in approximately $9.6 million in goodwill and $4.2 million in core deposit intangible, none of which is deductible for tax purposes.

First Guaranty accounts for business combinations under the acquisition method in accordance with ASC Topic 805, Business Combinations. Accordingly, for each transaction, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of the acquisition. In conjunction with the adoption of ASU 2015-16, upon receipt of final fair value estimates during the measurement period, which must be within one year of the acquisition date, First Guaranty records any adjustments to the preliminary fair value estimates in the reporting period in which the adjustments are determined. First Guaranty is continuing to finalize the purchase price allocations related to the Union acquisition. Based on management's preliminary valuation of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Union acquisition is allocated in the table below. These allocations are subject to change.


(in thousands)	Union Bancshares, Incorporated

Cash and due from banks	$	20,058
Securities available for sale	38,813
Loans	184,025
Premises and equipment	7,223
Goodwill	9,599
Intangible assets	4,213
Other real estate	1,595
Other assets	9,486
Total assets acquired	$	275,012

Deposits	204,979
FHLB borrowings	16,617
Repurchase agreements	6,863
Other liabilities	3,170
Total liabilities assumed	$	231,629
Net assets acquired	$	43,383