Acquisition (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of business acquisitions, by acquisition

The following table provides a preliminary assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands):



Consideration Paid:
Common shares issued (2,361,686)	$	82,470
Issuance of replacement stock options/restricted stock	753
Cash paid in lieu of fractional shares	27
Value of consideration	83,250

Assets acquired:
Cash and cash equivalents	26,283
Investment securities	34,876
Restricted stock	2,588
Loans	444,324
Premises and equipment	12,554
Deferred income taxes	2,960
Core deposit intangible	8,200
Other real estate owned	1,442
Banked owned life insurance	8,246
Other assets	14,244
Total assets	555,717

Liabilities assumed:
Deposits	483,626
Short-term FHLB advances	14,883
Long-term FHLB advances	778
Subordinated debt	7,530
Other liabilities	5,780
Total liabilities	512,597
Net assets acquired	43,120
Goodwill resulting from merger with HomeTown	$	40,130

Schedule of Goodwill

The following table details the changes in fair value of net assets acquired and liabilities assumed from the amounts reported in the Form 10-Q for the quarterly period ended September 30, 2019 (dollars in thousands):



Goodwill at September 30, 2019	$	40,761
Effect of adjustments to deferred income taxes	(631		)
Goodwill at December 31, 2019	$	40,130

The changes in the carrying amount of goodwill and intangibles for the twelve months ended December 31, 2019, are as follows (dollars in thousands):



	Goodwill		Intangibles
Balance at December 31, 2018	$	43,872	$	926
Additions	40,130		8,200
Amortization	—		(1,398		)
Balance at December 31, 2019	$	84,002	$	7,728

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

The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands):



Contractually required principal and interest at acquisition	$	45,551
Contractual cash flows not expected to be collected (nonaccretable difference)	8,296
Expected cash flows at acquisition	37,255
Interest component of expected cash flows (accretable yield)	4,410
Fair value of acquired loans accounted for under FASB ASC 310-30	$	32,845

Business acquisition, pro forma 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, except per share data):



	Pro forma Years Ended December 31,
	2019		2018
Total revenues ⁽¹⁾	$	95,178	$	98,232
Net income	$	29,841	$	27,974
Earnings per share	$	2.70	$	2.52

(1) Includes net interest income and noninterest income.