NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 2. BUSINESS COMBINATIONS( Continued)
The Company recognized contract assets and contract liabilities from revenue contracts with customers as a result of the business combination. The related revenue contracts with customers are recognized in accordance with Topic 606. The company elected the following practical expedients on the date of acquisition:
● The aggregate effect of all modifications that occurred before the acquisition date was reflected when identifying the satisfied and unsatisfied performance obligations; determining the transaction price; and allocating the transaction price to the satisfied and unsatisfied performance obligations.
● The standalone selling price was determined at the acquisition date for all contracts, for the purpose of allocating the transaction price, or each performance obligation in the contract as opposed to using the contract inception date.
Goodwill of $ 6,025,029 arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. The goodwill is not expected to be deductible for income tax purposes. The following table summarizes the fair value of the total consideration transferred as part of the acquisition and the fair value of identifiable assets acquired and liabilities assumed as of November 18, 2025:
Fair Value of Cash Consideration
Identifiable Assets Acquired: Cash and Due From Banks Federal Funds Sold Interest-Bearing Time Deposits in Other Banks Investment Securities Net Loans FHLB Stock Premises and Equipment Corporate-Owned Life Insurance Accrued Interest Receivable Core Deposit Intangible Deferred Tax Other Assets Total Identifiable Assets Acquired
Liabilities Assumed Deposits Federal Funds Purchased Accrued Interest and Other Liabilities Total Liabilities Assumed
Total Identifiable Net Assets Acquired Goodwill Resulting From Merger
$ 19,250,025
610,811 86,008 100,000 37,640,413 45,465,641
355,500 1,050,608 4,190,684
430,940 1,835,384 1,129,479
23,426 92,918,894
75,841,463 2,063,000 1,789,435 79,693,898
13,224,996 $ 6,025,029
32 | 2025 NWSB Annual Report