Investor Presentaiton
Transaction Assumptions
COST SAVINGS
$4.9 million after-tax cost savings in first full year; 35% of SGB's estimated non-interest expense
Assumes 75% realization of cost savings by the end of FY 2020; 100% in FY 2021
TRANSACTION EXPENSES
LOAN FAIR VALUE ADJUSTMENT
FIXED ASSET MARK
OTHER FMV ADJUSTMENTS
CORE DEPOSIT (2) INTANGIBLE
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$7.25 million in after-tax transaction expenses
$3.8 million pre-tax credit mark on total loans, equal to 0.95% of SGB's total loans, consisting of:
0.42% PCD credit mark on total loans (1)
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0.53% non-PCD credit mark on total loans; accreted back through income over 4.5 years
Day 2 CECL reserve of 1.0x non-PCD credit mark (additional 'double-count' of 0.53% on
total loans); assumed at time zero
$4.1 million rate-related positive write-up
$2.2 million positive write-up on SGB's fixed assets
Mark results from gain on SGB's branch real estate
FBMS to repay SGB's FHLB at close; includes prepayment penalty
$0.2 million positive write-up to SGB's deposits
$7.3 million core deposit intangible amortized straight-line over 10 years
■ 2.0% of SGB's transaction accounts (2)
EFFECTIVE TAX RATE
■ 25% effective tax rate on merger adjustments
(1) Based upon SGB's September 30, 2019 total loans of $395 million (includes loans held for sale)
(2) Core deposits defined as total deposits less all CDs; Based upon SGB's September 30, 2019 transaction accounts of $367 million
Source: S&P Global Market Intelligence
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