XML 47 R35.htm IDEA: XBRL DOCUMENT v3.7.0.1
Acquisitions - Net Assets Acquired (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Jun. 16, 2017
Jun. 30, 2016
Avenue Financial Holdings, Inc. (Avenue)      
Assets      
Cash and cash equivalents     $ 39,485
Investment securities [1]     163,399
Loans [2]     952,530
Mortgage loans held for sale     3,310
Core deposit intangible [3]     8,845
Other assets [4]     56,503
Total Assets     1,224,072
Liabilities      
Interest-bearing deposits [5]     743,035
Non-interest bearing deposits     223,685
Borrowings [6]     145,879
Other liabilities     29,778
Total Liabilities     1,142,377
Fair value of net assets assumed including estimated identifiable intangible assets     81,695
Avenue Financial Holdings, Inc. (Avenue) | Historical Cost Basis      
Assets      
Cash and cash equivalents     39,485
Investment securities [1]     163,862
Loans [2]     980,319
Mortgage loans held for sale     3,310
Core deposit intangible [3]     0
Other assets [4]     47,729
Total Assets     1,234,705
Liabilities      
Interest-bearing deposits [5]     741,635
Non-interest bearing deposits     223,685
Borrowings [6]     142,639
Other liabilities     29,719
Total Liabilities     1,137,678
Fair value of net assets assumed including estimated identifiable intangible assets     97,027
Avenue Financial Holdings, Inc. (Avenue) | Fair Value Adjustments      
Assets      
Cash and cash equivalents     0
Investment securities [1]     (463)
Loans [2]     (27,789)
Mortgage loans held for sale     0
Core deposit intangible [3]     8,845
Other assets [4]     8,774
Total Assets     (10,633)
Liabilities      
Interest-bearing deposits [5]     1,400
Non-interest bearing deposits     0
Borrowings [6]     3,240
Other liabilities     59
Total Liabilities     4,699
Fair value of net assets assumed including estimated identifiable intangible assets     $ (15,332)
BNC Bancorp      
Assets      
Cash and cash equivalents   $ 155,271  
Investment securities [7]   645,542  
Loans [8]   5,607,247  
Mortgage loans held for sale   27,026  
Other real estate owned   20,143  
Core deposit intangible [9]   48,528  
Property, plant and equipment [10]   156,805  
Other assets [11]   370,299  
Total Assets   7,030,861  
Liabilities      
Interest-bearing deposits [12]   5,008,008  
Non-interest bearing deposits   1,199,342  
Borrowings [13]   176,977  
Other liabilities   37,466  
Total Liabilities   6,421,793  
Fair value of net assets assumed including estimated identifiable intangible assets $ 609,068 $ 609,068  
Estimated uncollectible loans (as percent)   2.50%  
Percentage of expected uncollectible loans acquired   3.00%  
BNC Bancorp | Historical Cost Basis      
Assets      
Cash and cash equivalents   $ 155,271  
Investment securities [7]   643,875  
Loans [8]   5,782,720  
Mortgage loans held for sale   27,026  
Other real estate owned   20,143  
Core deposit intangible [9]   0  
Property, plant and equipment [10]   156,805  
Other assets [11]   320,988  
Total Assets   7,106,828  
Liabilities      
Interest-bearing deposits [12]   5,003,653  
Non-interest bearing deposits   1,199,342  
Borrowings [13]   183,389  
Other liabilities   35,729  
Total Liabilities   6,422,113  
Fair value of net assets assumed including estimated identifiable intangible assets   684,715  
BNC Bancorp | Fair Value Adjustments      
Assets      
Cash and cash equivalents   0  
Investment securities [7]   1,667  
Loans [8]   (175,473)  
Mortgage loans held for sale   0  
Other real estate owned   0  
Core deposit intangible [9]   48,528  
Property, plant and equipment [10]   0  
Other assets [11]   49,311  
Total Assets   (75,967)  
Liabilities      
Interest-bearing deposits [12]   4,355  
Non-interest bearing deposits   0  
Borrowings [13]   (6,412)  
Other liabilities   1,737  
Total Liabilities   (320)  
Fair value of net assets assumed including estimated identifiable intangible assets   $ (75,647)  
[1] The amount represents the adjustment of the book value of Avenue's investment securities to their estimated fair value on the date of acquisition.
[2] The amount represents the adjustment of the net book value of Avenue's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, which includes estimates of expected credit losses inherent in the portfolio.
[3] The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base acquired.
[4] The amount represents the deferred tax asset recognized on the fair value adjustment of Avenue's acquired assets and assumed liabilities as well as the fair value adjustment for property and equipment.
[5] The amount represents the adjustment necessary because the weighted average interest rate of Avenue's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio.
[6] The amount represents the adjustment necessary because the weighted average interest rate of Avenue's FHLB advances and subordinated debt issuance exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio.
[7] The amount represents the adjustment of the book value of BNC's investment securities to their estimated fair value on the date of acquisition.
[8] The amount represents the adjustment of the net book value of BNC's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, which includes estimates of expected credit losses inherent in the portfolio of approximately 2.5% of the 3% mark on the acquired loan portfolio.
[9] The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base acquired and the fair value of the customer relationship intangible asset representing the intangible value of customer relationships acquired.
[10] A fair value adjustment for property and equipment will be recorded, but no estimate is determinable at this time.
[11] The amount represents the deferred tax asset recognized on the fair value adjustment of BNC's acquired assets and assumed liabilities.
[12] The amount represents the adjustment necessary because the weighted average interest rate of BNC's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio.
[13] The amount represents the combined adjustment necessary because the weighted average interest rate of BNC's subordinated debt issuance exceeded the cost of similar funding at the time of acquisition and because the weighted average interest rate of BNC's trust preferred securities issuances was lower than the cost of similar funding at the time of acquisition. The combined fair value adjustments will be amortized to increase future interest expense over the lives of the portfolios.