UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
CURRENT REPORT PURSUANT TO SECTION 13 OR
15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): | October 1, 2017 |
First Bancorp
(Exact Name of Registrant as Specified in its Charter)
North Carolina | 0-15572 | 56-1421916 | ||
(State or Other Jurisdiction | (Commission | (I.R.S. Employer | ||
of Incorporation) | File Number) | Identification Number) |
300 SW Broad Street, Southern Pines, NC |
28387 | |||
(Address of Principal Executive Offices) | (Zip Code) |
(910) 246-2500
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Explanatory Note
As previously disclosed in the Current Report on Form 8-K filed by First Bancorp with the Securities and Exchange Commission on October 2, 2017 (the “Initial Filing”), First Bancorp completed its previously announced merger with ASB Bancorp, Inc. (“ASBB”) on October 1, 2017, as a result of which ASBB merged with and into First Bancorp, with First Bancorp as the surviving corporation.
This Amendment No. 1 amends the Initial Filing to provide information required by Item 9.01 which was excluded from the Initial Filing in reliance on Items 9.01(a)(4) and 9.01(b)(2).
(a) Financial Statements of Businesses Acquired
The Financial Statements of ASBB required by Item 9.01(a) and the related Notes and Reports of Independent Registered Public Accounting Firm are incorporated herein by reference to ASBB’s Annual Report on Form 10-K for the year ended December 31, 2016.
(b) Pro Forma Financial Information
The pro forma financial information required by Item 9.01(b) including the unaudited pro forma condensed consolidated balance sheet as of June 30, 2017 and the unaudited pro forma condensed consolidated statements of income for the six months ended June 30, 2017 and the year ended December 31, 2016, and the related notes to the unaudited pro forma combined condensed consolidated financial information is included as Exhibit 99.1 herein.
(d) Exhibits.
Disclosures About Forward Looking Statements
This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgments of First Bancorp and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of First Bancorp’s customers, First Bancorp’s level of success in integrating acquisitions, actions of government regulators, the level of market interest rates, and general economic conditions. For additional information about the factors that could affect the matters discussed in this paragraph, see the “Risk Factors” section of First Bancorp’s most recent annual report on Form 10-K. Forward-looking statements speak only as of the date they are made, and First Bancorp undertakes no obligation to update or revise forward-looking statements.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
FIRST BANCORP | ||
By: | /s/ Richard H. Moore | |
Richard H. Moore | ||
Chief Executive Officer |
Date: December 6, 2017
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Consent of Independent Registered Public Accounting Firm
We consent to the use of our reports dated March 15, 2017, with respect to the consolidated balance sheets of ASB Bancorp, Inc. as of December 31, 2016 and 2015, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for each of the years in the three-year period ended December 31, 2016, and the effectiveness of internal control over financial reporting as of December 31, 2016, incorporated herein by reference.
/s/ DIXON HUGHES GOODMAN LLP | |
Atlanta, Georgia | |
December 6, 2017 |
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma condensed combined financial information and explanatory notes show the impact on the historical financial positions and results of operations of First Bancorp and ASBB and have been prepared to illustrate the effects of the merger involving First Bancorp and ASBB under the acquisition method of accounting with First Bancorp treated as the acquirer. Under the acquisition method of accounting, the assets and liabilities of ASBB have been recorded by First Bancorp at their respective fair values and the excess of the merger consideration over the fair value of ASBB’s net assets has been allocated to goodwill. The unaudited pro forma condensed combined balance sheet as June 30, 2017 is presented as if the merger had occurred on June 30, 2017. The unaudited pro forma condensed combined income statements for the fiscal year ended December 31, 2016 and the six months ended June 30, 2017 are presented as if the merger had occurred on January 1, 2016. The historical consolidated financial information has been adjusted to reflect factually supportable items that are directly attributable to the merger and, with respect to the income statements only, expected to have a continuing impact on consolidated results of operations.
The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and does not necessarily indicate the financial results of the combined company had the companies actually been combined at the beginning of the periods presented. The adjustments included in these unaudited pro forma condensed combined financial statements are preliminary and may be revised. The unaudited pro forma condensed combined financial information also does not consider any potential impacts of potential revenue enhancements, anticipated cost savings and expense efficiencies, or asset dispositions, among other factors.
The unaudited pro forma condensed combined financial information is provided for informational purposes only and is prepared based on various assumptions and estimates made by management. The unaudited pro forma condensed combined financial information is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the transaction been completed as of the dates indicated or that may be achieved in the future.
Unaudited Pro Forma Condensed Combined Balance Sheet
As of June 30, 2017
First | Pro Forma | Pro Forma | ||||||||||||||||||
($ in thousands) | Bancorp | ASBB | Adjustments | Notes | Combined | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash & due from banks, noninterest-bearing | $ | 80,234 | 10,657 | — | 90,891 | |||||||||||||||
Due from banks, interest-bearing | 337,326 | 42,654 | (30,225 | ) | 1 | 349,755 | ||||||||||||||
Total cash and cash equivalents | 417,560 | 53,311 | (30,225 | ) | 440,646 | |||||||||||||||
Securities available for sale | 207,496 | 95,935 | — | 303,431 | ||||||||||||||||
Securities held to maturity | 127,866 | 3,615 | 130 | 2 | 131,611 | |||||||||||||||
Loans and leases held for sale | 13,071 | 4,097 | — | 17,168 | ||||||||||||||||
Loans | 3,375,976 | 613,603 | (13,024 | ) | 3 | 3,976,555 | ||||||||||||||
Allowance for loan losses | (24,025 | ) | (6,659 | ) | 6,659 | 4 | (24,025 | ) | ||||||||||||
Net loans | 3,351,951 | 606,944 | (6,365 | ) | 3,952,530 | |||||||||||||||
Premises and equipment | 96,605 | 10,854 | 8,624 | 5 | 116,083 | |||||||||||||||
Other real estate | 11,196 | 5,034 | (1,800 | ) | 6 | 14,430 | ||||||||||||||
Goodwill | 139,124 | — | 78,165 | 7 | 217,289 | |||||||||||||||
Other intangible assets | 12,132 | — | 9,760 | 8 | 21,892 | |||||||||||||||
Bank-owned life insurance | 87,501 | 10,355 | — | 97,856 | ||||||||||||||||
Other | 64,118 | 11,243 | 3,152 | 9 | 78,513 | |||||||||||||||
Total assets | $ | 4,528,620 | 801,388 | 61,441 | 5,391,449 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: Demand - noninterest-bearing | $ | 990,004 | 136,712 | — | 1,126,716 | |||||||||||||||
Interest-bearing | 2,654,326 | 540,735 | 435 | 10 | 3,195,496 | |||||||||||||||
Total deposits | 3,644,330 | 677,447 | 435 | 4,322,212 | ||||||||||||||||
Borrowings | 301,718 | 20,311 | 233 | 11 | 322,262 | |||||||||||||||
Subordinated notes and debentures | 53,687 | — | — | 53,687 | ||||||||||||||||
Other liabilities | 28,234 | 7,363 | 3,577 | 12 | 39,174 | |||||||||||||||
Total liabilities | 4,027,969 | 705,121 | 4,245 | 4,737,335 | ||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Common stock | 262,901 | 38 | 153,425 | 13 | 416,364 | |||||||||||||||
Additional paid-in-capital | — | 20,533 | (20,533 | ) | 14 | — | ||||||||||||||
Retained earnings | 240,682 | 80,292 | (80,292 | ) | 14 | 240,682 | ||||||||||||||
Stock in directors' rabbi trust assumed in acquisition | (4,257 | ) | — | — | (4,257 | ) | ||||||||||||||
Directors' deferred fee obligation | 4,257 | — | — | 4,257 | ||||||||||||||||
Unearned Employee Stock Ownership Plan (ESOP) shares | — | (2,669 | ) | 2,669 | 15 | — | ||||||||||||||
Unearned equity incentive plan shares | — | (661 | ) | 661 | 14 | — | ||||||||||||||
Stock-based deferral plan shares | — | (380 | ) | 380 | 14 | — | ||||||||||||||
Accumulated other comprehensive income | (2,932 | ) | (886 | ) | 886 | 14 | (2,932 | ) | ||||||||||||
Total shareholders’ equity | 500,651 | 96,267 | 57,196 | 654,114 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 4,528,620 | 801,388 | 61,441 | 5,391,449 |
Unaudited Pro Forma Condensed Combined Statement of Income
For the Six Months Ended June 30, 2017
First Bancorp | ||||||||||||||||||||
First | Pro Forma | and ASBB - Pro | ||||||||||||||||||
Bancorp | ASBB | Adjustments | Notes | Forma Combined | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 73,359 | $ | 12,760 | $ | — | $ | 86,119 | ||||||||||||
Interest on investment securities | 4,696 | 1,047 | (33 | ) | 16 | $ | 5,710 | |||||||||||||
Other, principally overnight investments | 1,240 | 230 | (189 | ) | 17 | 1,281 | ||||||||||||||
Total interest income | 79,295 | 14,037 | (222 | ) | 93,110 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Savings, checking and money market accounts | 1,207 | 303 | — | 1,510 | ||||||||||||||||
Time deposits | 1,927 | 509 | (34 | ) | 18 | 2,402 | ||||||||||||||
Borrowings | 1,949 | 605 | — | 19 | 2,554 | |||||||||||||||
Total interst expense | 5,083 | 1,417 | (34 | ) | 6,466 | |||||||||||||||
Net interest income | 74,212 | 12,620 | (188 | ) | 86,644 | |||||||||||||||
Provision for loan losses | 723 | 132 | — | 855 | ||||||||||||||||
Net interest income after provision (reversal) for loan losses | 73,489 | 12,488 | (188 | ) | 85,789 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges on deposit accounts | 5,580 | 912 | — | 6,492 | ||||||||||||||||
Other charges, commissions and fees | 6,727 | 1,567 | — | 8,294 | ||||||||||||||||
Mortgage banking income | 2,279 | 887 | — | 3,166 | ||||||||||||||||
Commissions from sales of insurance and financial products | 1,878 | 124 | — | 2,002 | ||||||||||||||||
SBA consulting fees | 2,310 | — | 2,310 | |||||||||||||||||
SBA loan sale gains | 1,549 | — | 1,549 | |||||||||||||||||
Bank-owned life insurance income | 1,088 | 170 | — | 1,258 | ||||||||||||||||
Securities gains (losses) | (223 | ) | 27 | — | (196 | ) | ||||||||||||||
Foreclosed property gains (losses) | (235 | ) | 16 | — | (219 | ) | ||||||||||||||
Other gain (losses) | 731 | — | — | 731 | ||||||||||||||||
Total noninterest income | 21,684 | 3,703 | — | 25,387 | ||||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Salaries and employee benefits | 37,739 | 6,608 | — | 44,347 | ||||||||||||||||
Occupancy and equipment expense | 6,963 | 804 | — | 7,767 | ||||||||||||||||
Merger and acquisition expense | 3,495 | 520 | (843 | ) | 20 | 3,172 | ||||||||||||||
Intangibles amortization | 1,607 | — | 1,122 | 21 | 2,729 | |||||||||||||||
Other | 17,352 | 3,918 | — | 21,270 | ||||||||||||||||
Total noninterest expenses | 67,156 | 11,850 | 279 | 79,285 | ||||||||||||||||
Income before income taxes | 28,017 | 4,341 | (467 | ) | 31,891 | |||||||||||||||
Income taxes | 9,308 | 1,355 | (173 | ) | 10,490 | |||||||||||||||
Net income | 18,709 | 2,986 | (294 | ) | 21,401 | |||||||||||||||
Preferred stock dividends | — | — | — | — | ||||||||||||||||
Net income available to common shareholders | $ | 18,709 | $ | 2,986 | $ | (294 | ) | $ | 21,401 | |||||||||||
Basic earnings per share | $ | 0.80 | $ | 0.86 | $ | 0.76 | ||||||||||||||
Diluted earnings per share | $ | 0.80 | $ | 0.80 | $ | 0.76 | ||||||||||||||
Weighted average common shares - basic | 23,288,635 | 3,464,356 | 1,444,892 | 22 | 28,197,883 | |||||||||||||||
Weighted average common shares - diluted | 23,368,503 | 3,731,780 | 1,177,468 | 22 | 28,277,751 |
Unaudited Pro Forma Condensed Combined Statement of Income
For the Year Ended December 31, 2016
First Bancorp | ||||||||||||||||||||
First | Pro Forma | and ASBB - Pro | ||||||||||||||||||
Bancorp | ASBB | Adjustments | Notes | Forma Combined | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | 121,322 | $ | 24,769 | $ | — | $ | 146,091 | ||||||||||||
Interest on investment securities | 8,782 | 2,263 | (65 | ) | 16 | 10,980 | ||||||||||||||
Other, principally overnight investments | 883 | 316 | (378 | ) | 17 | 821 | ||||||||||||||
Total interest income | 130,987 | 27,348 | (443 | ) | 157,892 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Savings, checking and money market accounts | 1,620 | 550 | — | 2,170 | ||||||||||||||||
Time deposits | 3,550 | 922 | (401 | ) | 18 | 4,071 | ||||||||||||||
Borrowings | 2,437 | 1,972 | (233 | ) | 19 | 4,176 | ||||||||||||||
Total interst expense | 7,607 | 3,444 | (634 | ) | 10,417 | |||||||||||||||
Net interest income | 123,380 | 23,904 | 191 | 147,475 | ||||||||||||||||
Provision for loan losses - noncovered | 2,109 | 548 | — | 2,657 | ||||||||||||||||
Provision (reversal) for loan losses - covered | (2,132 | ) | — | — | (2,132 | ) | ||||||||||||||
Total provision (reversal) for loan losses | (23 | ) | 548 | — | 525 | |||||||||||||||
Net interest income after provision (reversal) for loan losses | 123,403 | 23,356 | 191 | 146,950 | ||||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges on deposit accounts | 10,571 | 1,988 | — | 12,559 | ||||||||||||||||
Other charges, commissions and fees | 11,913 | 3,328 | — | 15,241 | ||||||||||||||||
Mortgage banking income | 2,033 | 1,710 | — | 3,743 | ||||||||||||||||
Commissions from sales of insurance and financial products | 3,790 | 243 | — | 4,033 | ||||||||||||||||
SBA consulting fees | 3,199 | — | — | 3,199 | ||||||||||||||||
SBA loan sale gains | 1,433 | — | 1,433 | |||||||||||||||||
Bank-owned life insurance income | 2,052 | 185 | — | 2,237 | ||||||||||||||||
Securities gains (losses) | 3 | 1,321 | — | 1,324 | ||||||||||||||||
Foreclosed property gains (losses) | (625 | ) | (2 | ) | — | (627 | ) | |||||||||||||
Indemnification asset income | (10,255 | ) | — | — | (10,255 | ) | ||||||||||||||
Other gain (losses) | 1,437 | (17 | ) | — | 1,420 | |||||||||||||||
Total noninterest income | 25,551 | 8,756 | — | 34,307 | ||||||||||||||||
Noninterest expenses | ||||||||||||||||||||
Salaries and employee benefits | 62,064 | 13,088 | — | 75,152 | ||||||||||||||||
Occupancy and equipment expense | 11,446 | 1,786 | — | 13,232 | ||||||||||||||||
Merger and acquisition expenses | 1,431 | — | — | 1,431 | ||||||||||||||||
Settlement of qualified pension plan | — | 7,607 | (7,607 | ) | 23 | — | ||||||||||||||
Intangibles amortization | 1,211 | — | 2,519 | 21 | 3,730 | |||||||||||||||
Other | 30,669 | 7,969 | — | 38,638 | ||||||||||||||||
Total noninterest expenses | 106,821 | 30,450 | (5,088 | ) | 132,183 | |||||||||||||||
Income before income taxes | 42,133 | 1,662 | 5,279 | 49,074 | ||||||||||||||||
Income taxes | 14,624 | 444 | 1,951 | 17,019 | ||||||||||||||||
Net income | 27,509 | 1,218 | 3,328 | 32,055 | ||||||||||||||||
Preferred stock dividends | (175 | ) | — | — | (175 | ) | ||||||||||||||
Net income available to common shareholders | $ | 27,334 | $ | 1,218 | $ | 3,328 | $ | 31,880 | ||||||||||||
Basic earnings per share | $ | 1.37 | $ | 0.35 | $ | 1.28 | ||||||||||||||
Diluted earnings per share | $ | 1.33 | $ | 0.33 | $ | 1.25 | ||||||||||||||
Weighted average common shares - basic | 19,964,727 | 3,505,387 | 1,403,861 | 22 | 24,873,975 | |||||||||||||||
Weighted average common shares - diluted | 20,732,917 | 3,659,575 | 1,249,673 | 22 | 25,642,165 |
Notes to Unaudited Pro Forma Consolidated Information
($ in thousands except per share data)
Note I – Pro Forma Adjustments
The following pro forma adjustments have been reflected in the unaudited pro forma combined consolidated financial information. All adjustments are based on current assumptions and valuations, which are subject to change.
1. | This represents the cash portion of the merger consideration of $15,872, the cash out of the stock options of $11,482 and after-tax merger-related costs of $6,000, partially offset by $3,129 in proceeds from the termination of ASBB’s employee stock ownership plan. |
2. | This is the estimated fair market value adjustment to the held to maturity securities portfolio. |
3. | This is the estimated fair value adjustment of the acquired loan portfolio. |
4. | The existing ASBB allowance for loan losses is not carried over under applicable accounting rules. |
5. | This is the estimated fair market value adjustment to ASBB’s land and buildings. |
6. | This is the estimated fair market value adjustment to ASBB’s foreclosed real estate holdings. |
7. | This is the estimated goodwill that would have been created in this transaction as of June 30, 2017 as a result of the consideration paid being greater than the net assets acquired. |
8. | This is the estimated core deposit intangible related to acquired core deposit accounts. |
9. | This is the tax receivable recorded in connection with the cash out of ASBB’s stock options. |
10. | This is the estimated fair market value adjustment associated with the interest rate being paid on time deposits based on similar market products. |
11. | This is the estimated fair market value adjustment associated with ASBB’s borrowings. |
12. | This is the net increase in tax liability resulting from the deferred tax liability associated with the fair market value adjustments at a 37% blended effective tax rate. |
13. | This is the adjustment necessary to reflect the issuance of 4,909,248 shares of First Bancorp common stock based at a value of $31.26 per share (the price of First Bancorp stock on June 30, 2017), resulting in total stock merger consideration of approximately $153,463. |
14. | These items of shareholders’ equity are eliminated as part of the accounting entries to reflect the transaction. |
15. | The adjustment reflects the termination of the employee stock ownership plan as of the merger date. |
16. | This reflects the expected amortization expense associated with the fair market value adjustment related to securities. |
17. | This is the estimate of foregone interest income that is expected as a result of the cash outlay described in note 1. |
18. | This is the estimate of amortization expense associated with the fair market value adjustment related to time deposits. |
19. | This is the estimate of amortization expense associated with the fair market value adjustment related to borrowings. |
20. | This is the amount of combined merger expenses recorded by First Bancorp and ASBB associated with this transaction for the six months ended June 30, 2017. |
21. | This is the estimated amortization expense of the core deposit intangible. |
22. | This is the adjustment necessary to reflect the expected number of First Bancorp shares of to be issued as merger consideration of 4,909,248. |
23. | This is the one-time charge that ASBB recorded in 2016 to terminate the company’s defined benefit pension plan. Due to the nonrecurring nature, the financial impact of this item has been eliminated. |
Note II – Merger Related Charges
The total estimated cash transaction costs related to the merger are approximately $13.9 million on a pretax basis. These estimated transaction costs are still being developed and will continue to be refined over the next several months, and will include assessing personnel, benefit plans, premises, equipment, and service contracts to determine where they may take advantage of redundancies. These costs are recorded as non-interest expense as incurred. The total estimated cash transaction costs are presented in the following table.
Merger Transaction Costs Schedule | ||||
Salaries and employee benefits | $ | 5,625 | ||
Professional fees | 4,075 | |||
Contract termination fess | 3,200 | |||
Other noninterest expense | 1,000 | |||
Total merger related costs | 13,900 | |||
Applicable tax benefit | 4,600 | |||
Net expense after tax benefit | $ | 9,300 |
Through June 30, 2017, First Bancorp had recorded approximately $0.3 million and ASBB had recorded approximately $0.5 million in such costs, primarily professional fees, in connection with the transaction. For the period from July 1, 2017 until the closing of the merger on October 1, 2017, First Bancorp recorded approximately $0.1 million and ASBB recorded approximately $9.2 million in merger expenses ($6.0 million after-tax). The majority of the remaining approximately $3.8 million in merger-related costs are expected to be recorded by First Bancorp in the fourth quarter of 2017 as a component of noninterest expense.
In addition to the cash charges discussed above, prior to the merger date, ASBB recorded $10.7 million in non-cash charges related primarily to the termination of its Employee Stock Ownership Plan (ESOP) in connection with the closing of the merger. Although the charges lowered ASBB’s reported earnings for the pre-merger period, additional paid-in-capital increased by approximately the same amount, and thus these charges did not impact the shareholders’ equity of ASBB.
Note III – Preliminary Purchase Accounting Allocation
The unaudited pro forma combined consolidated financial information reflects the pro forma issuance of 4,909,248 shares of First Bancorp common stock with an aggregate value of $169.3 million, as well as cash consideration of approximately $27.4 million. The merger will be accounted for using the acquisition method of accounting; accordingly, First Bancorp’s cost to acquire ASBB will be allocated to the assets (including identifiable intangible assets) and liabilities of ASBB at their respective estimated fair values as of the merger date. Accordingly, the pro forma purchase price was preliminarily allocated to the assets acquired and the liabilities assumed based on their estimated fair values, as summarized in the following table.
$ | 153,463 | Stock consideration (4,909 shares issued X $31.26 FBNC Stock Price on 6/30/17) | ||
27,354 | Cash consideration – from above | |||
180,817 | Total merger consideration | |||
96,267 | Equity of ASBB at June 30, 2017 | |||
84,550 | Preliminary goodwill amount | |||
6,000 | After-tax deal charges to be incurred by ASBB prior to merger | |||
Fair Value Adjustments | ||||
(130 | ) | Held to maturity securities | ||
6,365 | Loan mark, net of allowance | |||
1,800 | Foreclosed property mark | |||
(8,624 | ) | Premises | ||
(9,760 | ) | Core deposit intangible | ||
435 | Time deposits interest rate mark | |||
233 | Borrowings mark | |||
(3,152 | ) | Current tax receivable associated with cash out of stock options | ||
(3,129 | ) | ESOP termination tax benefit | ||
3,577 | Deferred tax liability associated with fair value adjustments | |||
$ | 78,165 | Total goodwill |