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MERGER AND ACQUISITION ACTIVITY
6 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
MERGER AND ACQUISITION COSTS
MERGER AND ACQUISITION ACTIVITY

On March 29, 2015, the Company, SBM and Atlantic Acquisitions, LLC, a wholly-owned subsidiary of the Company, entered into an Agreement and Plan of Merger (the "merger agreement") pursuant to which the Company will acquire SBM and its wholly-owned subsidiary, TBM.

Pursuant to the merger agreement, each outstanding share of SBM common stock will be converted into the right to receive, at the election of the stockholder and subject to the allocation and proration procedures described in the merger agreement, either: (1) $206.00 in cash, without interest (the “cash consideration”) or (2) 5.421 shares of common stock of the Company (the “stock consideration”). The cash consideration will remain fixed while the value of the stock consideration will fluctuate with the market price of Company common stock. All elections are subject to allocation and proration procedures that are intended to ensure that 80% of the total number of shares of SBM common stock outstanding immediately prior to the effective time of the merger will be converted into shares of Company common stock, and the remaining shares of SBM common stock will be converted into cash. This will result in SBM stockholders owning approximately 28% of the outstanding shares of Company common stock following the closing of the transaction.

The Company estimates that upon completion of the merger, total assets, loans and deposits of the combined consolidated entities will approximate $3.6 billion, $2.4 billion and $2.6 billion, respectively. Consideration will be paid to SBM stockholders in a combination of stock and cash valued at approximately $135.0 million based on the Company's closing share price of $38.60 on March 27, 2015.

In conjunction with the due diligence and announcement of the planned merger with SBM, the Company incurred certain non-recurring costs, including legal fees, investment banking fees, and other related expenses for the three and six months ended June 30, 2015 of $128,000 and $863,000, respectively. These non-recurring costs are presented on the consolidated statements of income within non-interest expense as merger and acquisition costs. In addition, the Company incurred certain equity issuance costs totaling $421,000 related to the registration of additional shares of the Company's common stock totaling 2,806,857 as part of the merger. These non-recurring costs have been accounted for as a reduction to shareholders' equity. The Company expects to continue to incur related non-recurring costs through the closing of the planned merger with SBM.

In accordance with the Internal Revenue Code, many of the aforementioned non-recurring costs are not deductible for income tax purposes. The impact to the Company's effective tax rate for the three and six months ended June 30, 2015 was an increase of 0.9% and 3.1% respectively.

On July 27, 2015, the Company and SBM jointly announced receipt of all shareholder and regulatory approvals for the merger, subject to the applicable waiting period under the federal banking law. The parties have agreed that the transaction will close on October 16, 2015.