Business Combinations (Tables)

9 Months Ended

Sep. 30, 2021

Sevier County Bancshares Inc [Member]

Business Acquisition [Line Items]

Schedule of Business Acquisitions

The purchased assets and assumed liabilities were recorded at their acquisition date fair values ⁽¹⁾ and are summarized in the table below (in thousands).

			Initial
	As recorded		Fair value		Subsequent		As recorded
	by SCB		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	84,313	$	—	$	—	$	84,313
Investment securities available-for-sale		64,219		(614)		—		63,605
Restricted investments		533		—		—		533
Loans		304,620		(4,551)		—		300,069
Allowance for loan losses		(3,644)		3,644		—		—
Premises and equipment, net		15,579		(295)		—		15,284
Bank owned life insurance		7,116		—		—		7,116
Deferred tax asset, net		10,340		(4,007)		—		6,333
Core deposit intangible		—		1,550		—		1,550
Interest Receivable		884		—		—		884
Other assets		920		(272)		—		648
Total assets acquired	$	484,880	$	(4,545)	$	—	$	480,335
Liabilities:
Deposits	$	435,036	$	—		—	$	435,036
Time deposit premium		—		888		—		888
Subordinated debt		2,500		—		—		2,500
Payables and other liabilities		5,563		115		—		5,678
Total liabilities assumed		443,099		1,003		—		444,102
Excess of assets acquired over liabilities assumed	$	41,781
Aggregate fair value adjustments			$	(5,548)	$	—
Total identifiable net assets								36,233
Consideration transferred:
Cash								9,568
Common stock issued (1,691,535 shares)								42,254
Total fair value of consideration transferred								51,822
Goodwill							$	15,589

⁽¹⁾ Fair values are preliminary and are subject to refinement for a period of one year after the closing date of an acquisition as information relative to the closing date fair value becomes available.

Loans Acquired in Acquisition

The following table presents additional information related to the purchased credit impaired loans (ASC 310-30) of the acquired loan portfolio at the acquisition date (in thousands):

	September 1, 2021
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	25,932
Non-accretable differences		4,203
Cash flows expected to be collected		21,729
Accretable yield		3,480
Fair value	$	18,249

Business Acquisition, Pro Forma Information

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	Revenue		Net Income		Revenue		Net Income
2021:
Actual SCB results included in statement of income since acquisition date	$	1,090	$	343	$	1,090	$	343
Supplemental consolidation pro-forma as if SCB had been acquired January 1, 2021		39,207		10,516		110,745		30,984
2020:
Supplemental consolidation pro-forma as if SCB had been acquired January 1, 2020	$	32,965	$	6,624	$	93,213	$	16,473

Fountain [Member]

Business Acquisition [Line Items]

Schedule of Business Acquisitions

The purchased assets and assumed liabilities were recorded at their acquisition date fair values ⁽¹⁾ and are summarized in the table below (in thousands).

	As recorded		Fair value		Subsequent		As recorded
	by Fountain		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	413	$	—	$	—	$	413
Leases		54,945		(720)		—		54,225
Allowance for lease losses		(1,796)		1,796		—		—
Customer list intangible		—		2,658		—		2,658
Other repossessed assets		319		—		—		319
Other assets		233		—		—		233
Total assets acquired	$	54,114	$	3,734	$	—	$	57,848
Liabilities:
Payables and other liabilities		683		(229)		—		454
Total liabilities assumed		683		(229)		—		454
Excess of assets acquired over liabilities assumed	$	53,431
Aggregate fair value adjustments			$	3,963	$	—
Total identifiable net assets								57,394
Consideration transferred:
Cash								59,794
Total fair value of consideration transferred								59,794
Goodwill							$	2,400

(1) Fair values are preliminary and are subject to refinement for a period of one year after the closing date of an acquisition as information relative to the closing date fair value becomes available.

Loans Acquired in Acquisition

The following table presents additional information related to the purchased credit impaired financing leases (ASC 310-30) of the acquired lease portfolio at the acquisition date (in thousands):

	May 3, 2021
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	6,018
Non-accretable differences		447
Cash flows expected to be collected		5,571
Accretable yield		649
Fair value	$	4,922

Business Acquisition, Pro Forma Information

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	Revenue		Net Income		Revenue		Net Income
2021:
Actual Fountain results included in statement of income since acquisition date	$	1,696	$	357	$	2,834	$	702
Supplemental consolidation pro-forma as if Fountain had been acquired January 1, 2021		36,690		9,614		102,470		28,101
2020:
Supplemental consolidation pro-forma as if Fountain had been acquired January 1, 2020	$	31,566	$	6,744	$	89,016	$	16,274

Progressive Financial Group Inc. [Member]

Business Acquisition [Line Items]

Schedule of Business Acquisitions

The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below (in thousands).

			Initial
	As recorded		Fair value		Subsequent		As recorded
	by PFG		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	55,971	$	—	$	—	$	55,971
Investment securities available-for-sale		27,054		203		—		27,257
Restricted investments		692		—		—		692
Loans		191,672		(3,691)		—		187,981
Allowance for loan losses		(2,832)		2,832		—		—
Premises and equipment, net		15,681		(2,919)		—		12,762
Bank owned life insurance		5,560		—		—		5,560
Deferred tax asset, net		—		813		193		1,006
Intangibles		—		1,370		1,127		2,497
Other real estate owned		3,695		(100)		(1,862)		1,733
Interest Receivable		1,061		(280)		—		781
Prepaids		375		(174)		—		201
Goodwill		231		(231)		—		—
Other assets		1,881		—		—		1,881
Total assets acquired	$	301,041	$	(2,177)	$	(542)	$	298,322
Liabilities:
Deposits	$	271,276	$	—		—	$	271,276
Time deposit premium		—		729		—		729
Payables and other liabilities		776		—		—		776
Total liabilities assumed		272,052		729		—		272,781
Excess of assets acquired over liabilities assumed	$	28,989
Aggregate fair value adjustments			$	(2,906)	$	(542)
Total identifiable net assets								25,541
Consideration transferred:
Cash								9,838
Common stock issued (1,292,578 shares)								24,547
Total fair value of consideration transferred								34,385
Goodwill							$	8,844

Loans Acquired in Acquisition

The following table presents additional information related to the purchased credit impaired loans (ASC 310-30) of the acquired loan portfolio at the acquisition date (in thousands):

	March 1, 2020
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	21,107
Non-accretable differences		4,706
Cash flows expected to be collected		16,401
Accretable yield		2,515
Fair value	$	13,886