Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Assets Acquired and Liabilities Assumed

A summary, at fair value, of the assets acquired and liabilities assumed in the First Texas transaction, as of the acquisition date, is as follows:



(In thousands)	Acquired from First Texas			Fair Value Adjustments			Fair Value
Assets Acquired
Cash and due from banks	$	59,277		$	—		$	59,277
Investment securities	81,114			(596		)	80,518
Loans acquired	2,246,212			(37,834		)	2,208,378
Allowance for loan losses	(20,864		)	20,664			(200		)
Premises and equipment	24,864			10,123			34,987
Bank owned life insurance	7,190			—			7,190
Goodwill	37,227			(37,227		)	—
Core deposit intangible	—			7,328			7,328
Other assets	18,263			11,485			29,748
Total assets acquired	$	2,453,283		$	(26,057	)	$	2,427,226

Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	74,410		$	—		$	74,410
Interest bearing transaction accounts and savings deposits	1,683,298			—			1,683,298
Time deposits	124,233			(283		)	123,950
Total deposits	1,881,941			(283		)	1,881,658
Securities sold under agreement to repurchase	50,000			—			50,000
Other borrowings	235,000			—			235,000
Subordinated debentures	30,323			589			30,912
Accrued interest and other liabilities	11,727			1,669			13,396
Total liabilities assumed	2,208,991			1,975			2,210,966
Equity	244,292			(244,292		)	—
Total equity assumed	244,292			(244,292		)	—
Total liabilities and equity assumed	$	2,453,283		$	(242,317	)	$	2,210,966
Net assets acquired							216,260
Purchase price							457,103
Goodwill							$	240,843

A summary, at fair value, of the assets acquired and liabilities assumed in the Citizens transaction, as of the acquisition date, is as follows:



(In thousands)	Acquired from Citizens			Fair Value Adjustments			Fair Value
Assets Acquired
Cash and due from banks	$	131,467		$	(351	)	$	131,116
Federal funds sold	10,000			—			10,000
Investment securities	61,987			1			61,988
Loans acquired	350,361			(9,511		)	340,850
Allowance for loan losses	(4,313		)	4,313			—
Foreclosed assets	4,960			(1,518		)	3,442
Premises and equipment	6,746			1,339			8,085
Bank owned life insurance	6,632			—			6,632
Core deposit intangible	—			5,075			5,075
Other intangibles	—			591			591
Other assets	17,364			6			17,370
Total assets acquired	$	585,204		$	(55	)	$	585,149

Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	109,281		$	—		$	109,281
Interest bearing transaction accounts and savings deposits	204,912			—			204,912
Time deposits	195,664			—			195,664
Total deposits	509,857			—			509,857
Securities sold under agreement to repurchase	13,233			—			13,233
FHLB borrowings	4,000			47			4,047
Accrued interest and other liabilities	3,558			1,530			5,088
Total liabilities assumed	530,648			1,577			532,225
Equity	54,556			(54,556		)	—
Total equity assumed	54,556			(54,556		)	—
Total liabilities and equity assumed	$	585,204		$	(52,979	)	$	532,225
Net assets acquired							52,924
Purchase price							76,300
Goodwill							$	23,376

A summary, at fair value, of the assets acquired and liabilities assumed in the OKSB transaction, as of the acquisition date, is as follows:



(In thousands)	Acquired from OKSB			Fair Value Adjustments			Fair Value
Assets Acquired
Cash and due from banks	$	79,517		$	—		$	79,517
Investment securities	485,468			(1,295		)	484,173
Loans acquired	2,039,524			(43,071		)	1,996,453
Allowance for loan losses	(26,957		)	26,957			—
Foreclosed assets	6,284			(1,127		)	5,157
Premises and equipment	21,210			5,457			26,667
Bank owned life insurance	28,704			—			28,704
Goodwill	13,545			(13,545		)	—
Core deposit intangible	1,933			40,191			42,124
Other intangibles	3,806			—			3,806
Other assets	33,455			(9,141		)	24,314
Total assets acquired	$	2,686,489		$	4,426		$	2,690,915



(In thousands)	Acquired from OKSB		Fair Value Adjustments			Fair Value
Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	485,971	$	—		$	485,971
Interest bearing transaction accounts and savings deposits	869,252		—			869,252
Time deposits	613,345		(2,213		)	611,132
Total deposits	1,968,568		(2,213		)	1,966,355
Securities sold under agreement to repurchase	11,256		—			11,256
Other borrowings	347,000		—			347,000
Subordinated debentures	46,393		—			46,393
Accrued interest and other liabilities	17,440		5,364			22,804
Total liabilities assumed	2,390,657		3,151			2,393,808
Equity	295,832		(295,832		)	—
Total equity assumed	295,832		(295,832		)	—
Total liabilities and equity assumed	$	2,686,489	$	(292,681	)	$	2,393,808
Net assets acquired						297,107
Purchase price						526,251
Goodwill						$	229,144



(In thousands)	Acquired from Hardeman		Fair Value Adjustments			Fair Value
Liabilities Assumed
Deposits:
Non-interest bearing transaction accounts	$	76,555	$	—		$	76,555
Interest bearing transaction accounts and savings deposits	214,872		—			214,872
Time deposits	97,917		(368		)	97,549
Total deposits	389,344		(368		)	388,976
Securities sold under agreement to repurchase	17,163		—			17,163
Other borrowings	3,000		—			3,000
Subordinated debentures	6,702		—			6,702
Accrued interest and other liabilities	1,891		1,924			3,815
Total liabilities assumed	418,100		1,556			419,656
Equity	50,729		(50,729		)	—
Total equity assumed	50,729		(50,729		)	—
Total liabilities and equity assumed	$	468,829	$	(49,173	)	$	419,656
Net assets acquired						43,268
Purchase price						72,639
Goodwill						$	29,371

Pro Forma Information

The pro forma financial information is not necessarily indicative of the results of operations if the acquisitions had been effective as of this date.



(In thousands, except per share data)	2017		2016
Revenue⁽¹⁾	$	654,358	$	620,461
Net income	$	130,947	$	136,199
Diluted earnings per share	$	1.43	$	1.52

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(1) Net interest income plus non-interest income.