Acquisition of MainStreet (Tables)

9 Months Ended

Sep. 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	587
Loans	115,050
Premises and equipment	1,030
Deferred income taxes	2,773
Core deposit intangible	1,839
Other real estate owned	168
Banked owned life insurance	1,955
Other assets	1,077
Total assets	161,452

Liabilities assumed:
Deposits	137,323
Other liabilities	3,001
Total liabilities	140,324
Net assets acquired	21,128
Goodwill resulting from merger with MainStreet	$	5,290

The following table details the changes in fair value of net assets acquired and liabilities assumed from the amounts originally reported in the Form 10-Q for the quarterly period ended June 30, 2015 (dollars in thousands):



Goodwill at June 30, 2015	$	5,167

Effect of adjustments to:
Loans	(353		)
Premises and equipment	289
Other Assets	187
Goodwill at September 30, 2015	$	5,290

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, after adjusting for the aforementioned reevaluation in the third quarter (dollars in thousands):



Contractually required principal and interest at acquisition	$	33,066
Contractual cash flows not expected to be collected (nonaccretable difference)	1,828
Expected cash flows at acquisition	34,894
Interest component of expected cash flows (accretable yield)	7,647
Fair value of acquired loans accounted for under FASB ASC 310-30	$	27,247

Schedule of Pro Forma information

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



	Pro forma Nine Months Ended
	September 30, 2015			September 30, 2014
Net interest income	$	37,584		$	37,302
Provision for loan loss	(700		)	(150		)
Non-interest income	9,469			9,055
Non-interest expense and income taxes	(35,660		)	(34,644		)
Net income	$	10,693		$	11,563



	Pro forma Three Months Ended
	September 30, 2015			September 30, 2014
Net interest income	$	12,378		$	12,512
Provision for loan loss	—			—
Non-interest income	3,055			3,205
Non-interest expense and income taxes	(11,245		)	(11,868		)
Net income	$	4,188		$	3,849