Acquisitions Acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

NOTE 16. ACQUISITIONS

On October 1, 2016, Summit Community Bank, Inc. ("SCB"), a wholly-owned subsidiary of Summit, acquired 100% of the ownership of Highland County Bankshares, Inc. ("HCB") and its subsidiary First and Citizens Bank, headquartered in Monterey, Virginia for cash consideration of $21.8 million. HCB's assets and liabilities approximated $123 million and $107 million, respectively, at September 30, 2016.

On April 1, 2017, SCB acquired First Century Bankshares, Inc. ("FCB") and its subsidiary First Century Bank, headquartered in Bluefield, West Virginia, for consideration of 1,537,912 shares of Summit common stock and $15.0 million cash. FCB's assets and liabilities approximated $405 million and $361 million, respectively, at March 31, 2017.

The following table estimates the pro forma revenue, net income and diluted earnings per share of the combined entities of Summit, HCB and FCB as if the acquisitions had taken place on January 1, 2016.

The pro forma revenue, net income and diluted earnings per share for the three months ended March 31, 2017 combines the historical results of FCB with Summit's consolidated statements of income and while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2016. Acquisition related expenses of $109,000 were included in our actual consolidated statement of income for the three months ended March 31, 2017, but were excluded from the pro forma information listed below. Additionally, FCB incurred acquisition related expenses of $661,000 in the first three months of 2017 which were also excluded. We expect to achieve operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below.

The pro forma revenue, net income and diluted earnings per share for the three months ended March 31, 2016 combines the historical results of HCB and FCB with Summit's consolidated statements of income and while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2016. Acquisition related expenses of $112,000 were included in our actual consolidated statement of income for the three months ended March 31, 2016, but were excluded from the pro forma information listed below. We expect to achieve operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below.

	Summit, HCB & FCB Pro Forma
	For the Three Ended March 31,
Dollars in thousands, except per share amounts	2017			2016
Total revenues, net of interest expense	$	21,546		$	20,505
Net (loss) income	$	(693	)	$	5,254
Diluted (loss) earnings per share	$	(0.06	)	$	0.43