On May 2, 2025, the Company acquired net assets of Sabal Trust Company (“Sabal”) with cash consideration. Sabal was the largest independent, employee-owned non-depository trust company in Florida that provides trust administration, investment management, retirement planning, estate settlement, and family office services. The acquisition provides the opportunity to expand the Company’s market share of investment management and trust business in certain high-growth markets in Central Florida. The transaction was accounted for as a business combination.

The following table sets forth the preliminary acquisition date fair value of the assets acquired and the liabilities assumed, the consideration paid, and the resulting goodwill as of June 30, 2025.


(in thousands)
ASSETS
Cash and due from banks	$	2,417
Property and equipment		1,048
Right of use assets		5,047
Identifiable intangible assets		41,800
Other assets		1,191
Total identifiable assets		51,503
LIABILITIES
Lease liabilities		4,709
Other liabilities		2,257
Total liabilities		6,966
Net assets acquired		44,537
Consideration paid		114,488
Goodwill	$	69,951

The net consideration paid is subject to final settlement, which is expected to occur in the third quarter of 2025. Identifiable intangible assets include customer relationships that are being amortized using an accelerated method based on forecasted cash flows over a useful life of approximately 24 years. Goodwill represents the excess of consideration paid over the fair value of the net assets acquired and is comprised of the estimated future economic benefits arising from the transaction that cannot be individually identified or do not qualify for separate recognition. These benefits include expanded presence in existing markets, operational expertise and synergies. The resulting goodwill is deductible for federal income tax purposes.

The operating results of the Company for the three and six months ended June 30, 2025 include the results from the operations of the acquired trust and asset management business from the date of acquisition. The results are not material to the Company’s results of operations and, as such, supplemental proforma financial information is not presented. During the three and six months ended June 30, 2025, the Company incurred acquisition-related costs of approximately $5.9 million, primarily in the data processing, professional services, and personnel expense line items in the Consolidated Statements of Income.