ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2019

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

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

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

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

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

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

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