Quarterly report pursuant to Section 13 or 15(d)

ACQUISITION (Details)

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ACQUISITION (Details) - Jan. 31, 2015 - USD ($)
$ in Thousands
Total
Assets acquired:  
Cash and cash equivalents $ 8,043
Debt securities 29,169
Equity securities 499
Loans 148,995
Allowance for loan losses 0
Premises and equipment, net 8,437
Accrued interest receivable 484
Deferred taxes 700
Other real estate owned 2,348
Bank owned life insurance contracts 2,685
Core deposit intangible 2,090
Other assets 364
Total assets acquired 203,814
Liabilities assumed:  
Deposits 175,754
Federal funds purchased 2,175
Other borrowings 1,396
Accrued interest payable 89
Other liabilities 268
Total liabilities assumed 179,682
Net assets acquired 24,132
Consideration Paid:  
Cash (20,926)
Stock (19,356)
Total consideration paid (40,282)
Goodwill 16,150
Metro Bancshares, Inc [Member]  
Assets acquired:  
Cash and cash equivalents 8,043
Debt securities 29,333
Equity securities 499
Loans 152,869
Allowance for loan losses (1,621)
Premises and equipment, net 7,606
Accrued interest receivable 484
Deferred taxes 754
Other real estate owned 2,373
Bank owned life insurance contracts 2,685
Core deposit intangible 0
Other assets 364
Total assets acquired 203,389
Liabilities assumed:  
Deposits 175,236
Federal funds purchased 2,175
Other borrowings 1,400
Accrued interest payable 89
Other liabilities 268
Total liabilities assumed 179,168
Net assets acquired 24,221
Consideration Paid:  
Cash (20,900)
Preliminary Fair Value Adjustment [Member]  
Assets acquired:  
Cash and cash equivalents [1] 0
Debt securities [1],[2] (164)
Equity securities [1] 0
Loans [1],[3] (3,874)
Allowance for loan losses [1],[3] 1,621
Premises and equipment, net [1],[4] 831
Accrued interest receivable [1] 0
Deferred taxes [1],[5] (54)
Other real estate owned [1],[6] (25)
Bank owned life insurance contracts [1] 0
Core deposit intangible [1],[7] 2,090
Other assets [1] 0
Total assets acquired [1] 425
Liabilities assumed:  
Deposits [1],[8] 518
Federal funds purchased [1] 0
Other borrowings [1],[9] (4)
Accrued interest payable [1] 0
Other liabilities [1] 0
Total liabilities assumed [1] 514
Net assets acquired [1] $ (89)
[1] The Company’s acquisition of Metro Bancshares, Inc. closed on January 31, 2015. Accordingly, each of the fair value adjustments shown are preliminary estimates of the purchase accounting adjustments. Management is continuing to evaluate each of these fair value adjustments and may revise one or more of them in future periods based on this continuing evaluation. During the second quarter of 2015, the fair value of other real estate owned was adjusted down by $280,000 to reflect the price received in an unsolicited offer to buy the property by a third party. During the second quarter of 2015, premises and equipment was written down by $41,000 to reflect the price received from a third party buyer of a piece of unimproved land held by the Company. To the extent that any of the preliminary fair value adjustments are revised in future periods, the resultant fair values and the amount of goodwill recorded by the Company will change.
[2] Adjustment reflects the fair value adjustment based on the Company’s pricing of the acquired debt securities portfolio.
[3] Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired loan portfolio and to eliminate the recorded allowance for loan losses.
[4] Adjustment reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment acquired.
[5] Adjustment reflects the differences in the carrying values of acquired assets and assumed liabilities for financial statement purposes and their basis for federal income tax purposes.
[6] Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other real estate owned acquired.
[7] Adjustment reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition.
[8] Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired deposits.
[9] Adjustment reflects the fair value adjustment based on the Company’s evaluation of the assumed debt.