Acquisition of MainStreet (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of consideration paid, and the fair value of identifiable assets acquired and liabilities assumed

In connection with the merger, the consideration paid, and the fair value of identifiable assets acquired and liabilities assumed as of the merger date are summarized in the following table (dollars in thousands):



Consideration Paid:
Common shares issued (825,586)	$	20,483
Cash paid to shareholders	5,935
Value of consideration	26,418

Assets acquired:
Cash and cash equivalents	18,173
Investment securities	18,800
Restricted stock	738
Loans	114,902
Premises and equipment	1,475
Deferred income taxes	2,683
Core deposit intangible	1,839
Other real estate owned	168
Banked owned life insurance	1,955
Other assets	917
Total assets	161,650

Liabilities assumed:
Deposits	137,323
Other liabilities	3,076
Total liabilities	140,399
Net assets acquired	21,251
Goodwill resulting from merger with MainStreet	$	5,167

Schedule of acquired loans

The following table details the acquired loans that are accounted for in accordance with FASB ASC 310-30 as of January 1, 2015 (dollars in thousands):



Contractually required principal and interest at acquisition	$	13,504
Contractual cash flows not expected to be collected (nonaccretable difference)	3,298
Expected cash flows at acquisition	10,206
Interest component of expected cash flows (accretable yield)	1,208
Fair value of acquired loans accounted for under FASB ASC 310-30	$	8,998

Schedule of Pro Forma information

In particular, expected operational cost savings are not reflected in the pro forma amounts (dollars in thousands).



	Pro forma Six Months Ended
	June 30, 2015			June 30, 2014
Net interest income	$	25,268		$	24,791
Provision for loan loss	(700		)	(150		)
Non-interest income	6,414			5,851
Non-interest expense and income taxes	(24,477		)	(22,777		)
Net income	$	6,505		$	7,715



	Pro forma Three Months Ended
	June 30, 2015			June 30, 2014
Net interest income	$	12,698		$	12,370
Provision for loan loss	(100		)	(150		)
Non-interest income	3,258			2,937
Non-interest expense and income taxes	(12,950		)	(11,338		)
Net income	$	2,906		$	3,819