Business Combinations

3 Months Ended

Mar. 31, 2020

On May 1, 2019, the Company acquired 100% of the equity of ATBancorp through a merger and acquired its wholly-owned banking subsidiaries ATSB and ABTW. The consideration included common stock valued at $116.0 million and cash consideration of $34.8 million.

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of the May 1, 2019 acquisition date net of any applicable tax effects. As part of the finalization of purchase accounting associated with the merger, an additional $2.06 million was recorded to goodwill, $296 thousand was recorded to deferred income taxes, with the offsetting impact being to additional paid-in capital. All amounts recognized for the business combination in the financial statements have been determined to be final as of March 31, 2020.

The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:


(in thousands)	May 1, 2019
Merger consideration
Share consideration	$	116,032
Cash consideration	34,766
Total merger consideration			$	150,798
Identifiable net assets acquired, at fair value
Assets acquired
Cash and cash equivalents	$	82,081
Debt securities available for sale	99,056
Loans	1,138,928
Premises and equipment	18,327
Other intangible assets	28,349
Foreclosed assets	3,091
Other assets	42,944
Total assets acquired			1,412,776
Liabilities assumed
Deposits	$	1,089,355
Short-term borrowings	100,761
Long-term debt	71,234
Other liabilities	29,951
Total liabilities assumed			1,291,301
Fair value of net assets acquired			121,475
Goodwill			$	29,323

The following table summarizes ATBancorp acquisition-related expenses for the periods indicated:


	Three Months Ended
	March 31,
(in thousands)	2020		2019
Noninterest Expense
Compensation and employee benefits	$	—	$	10

Legal and professional	—		126
Data processing	44		5
Other	10		26
Total ATBancorp acquisition-related expenses	$	54	$	167