ACQUISITIONS (Tables)
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3 Months Ended |
Mar. 31, 2019 |
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| Business Combinations [Abstract] |
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| Summary of Estimated Fair Value of Acquired Assets and Liabilities Assumed |
The following table summarized the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for Enterprise.
| | | | | | (Dollars in thousands) | | December 21, 2018 |
| | | | Cash and cash equivalents, net of stock options paid in cash | | $ | 9,153 |
| Securities available for sale | | 2,193 |
| Other bank stock | | 2,380 |
| Loans | | 257,170 |
| Foreclosed real estate | | 1,250 |
| Premises and equipment, net | | 422 |
| Accrued interest receivable | | 880 |
| Goodwill (banking segment) | | 2,204 |
| Intangibles assets | | 1,039 |
| Other assets | | 3,064 |
| Total Assets | | $ | 279,755 |
| | | | Deposits | | $ | (197,321 | ) | Borrowings | | (47,106 | ) | Other liabilities | | (2,882 | ) | Total Liabilities | | $ | (247,309 | ) | Net consideration paid - common shares issued | | $ | 32,446 |
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The following table summarized the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for Community. | | | | | | (Dollars in thousands) | | January 4, 2018 |
| | | | Cash and cash equivalents | | $ | 6,693 |
| Interest bearing time deposits with other banks | | 100 |
| Securities available for sale | | 75,909 |
| Other bank stock | | 1,155 |
| Loans | | 236,010 |
| Foreclosed real estate | | 1,312 |
| Premises and equipment, net | | 10,612 |
| Accrued interest receivable | | 824 |
| Goodwill (banking segment) | | 22,298 |
| Intangibles assets | | 1,331 |
| Bank-owned life insurance | | 7,963 |
| Other assets | | 1,677 |
| Total Assets | | $ | 365,884 |
| | | | Deposits | | $ | (301,157 | ) | Borrowings | | (12,000 | ) | Other liabilities | | (844 | ) | Total Liabilities | | $ | (314,001 | ) | Net consideration paid - common shares issued | | $ | 51,883 |
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| Summary of Fair Value Adjustments to Amortized Cost Basis of Loans Acquired |
The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan on a level yield amortization over 3.5 years. | | | | | | (Dollars in thousands) | | | Gross amortized cost basis at January 4, 2018 | | $ | 242,471 |
| Fair value adjustment on general pooled loans | | (3,737 | ) | Credit fair value adjustment on purchased credit impaired loans | | (2,664 | ) | Fair value of acquired loans at January 4, 2018 | | $ | 236,070 |
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The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. There was no credit adjustment for purchased credit impaired loans in the Enterprise acquisition. | | | | | | (Dollars in thousands) | | | Gross amortized cost basis at December 21, 2018 | | $ | 262,126 |
| Fair value adjustment on general pooled loans | | (4,956 | ) | Fair value of acquired loans at December 21, 2018 | | $ | 257,170 |
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| Pro Forma Business Acquisition Information |
The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below: | | | | | | | | | | (Dollars in thousands) | | Year Ended December 31, 2018 | | Year Ended December 31, 2017 | Total revenues (net interest income plus non-interest income) | | $ | 64,827 |
| | $ | 46,175 |
| Net Income | | 12,496 |
| | 7,283 |
| Basic and diluted earnings per share applicable to common stockholders | | $ | 1.80 |
| | $ | 0.84 |
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The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below: | | | | | | | | | | (Dollars in thousands) | | Year Ended December 31, 2018 | | Year Ended December 31, 2017 | Total revenues (net interest income plus non-interest income) | | $ | 54,941 |
| | $ | 47,280 |
| Net Income | | 9,935 |
| | 6,257 |
| Basic and diluted earnings per share applicable to common stockholders | | $ | 1.25 |
| | $ | 0.79 |
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The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the Community acquisition as of the closing date. | | | | | | (Dollars in thousands) | | Acquired Credit Impaired Loans | Contractually required principal and interest at acquisition | | $ | 6,289 |
| Contractual cash flows not expected to be collected (non-accretable difference) | | 1,819 |
| Expected cash flows at acquisition | | 4,470 |
| Interest component of expected cash flows (accretable difference) | | 846 |
| Fair value of acquired loans | | $ | 3,624 |
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