ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Business Acquisition and the Amounts of Acquired Identifiable Assets and Liabilities

The following table provides an assessment of the assets purchased, liabilities assumed, and the consideration transferred (dollars in thousands, except share and per share data):

Statement of Net Assets Acquired (at fair value) and consideration transferred:


Fair value of assets acquired:
Cash and cash equivalents	$	49,989
Securities available for sale		460,892
Loans held for sale		11,377
Loans		2,238,981
Bank premises and equipment		67,164
OREO		4,319
Core deposit intangible		29,570
Other assets		95,229
Total assets	$	2,957,521

Fair value of liabilities assumed:
Deposits	$	2,479,874
Short-term borrowings		49,227
Long-term borrowings		98,697
Other liabilities		14,322
Total liabilities	$	2,642,120

Net identifiable assets acquired	$	315,401
Goodwill (1)		234,122
Net assets acquired	$	549,523

Consideration :
Company's common shares issued		22,147,874
Purchase price per share of the Company's common stock (2)	$	24.81
Value of Company common stock issued	$	549,489
Value of stock options outstanding		34
Fair value of total consideration transferred	$	549,523

(1) - No goodwill is expected to be deductible for federal income tax purposes. The goodwill was primarily allocated to the community bank segment.
(2) - The value of the shares of common stock exchanged with StellarOne shareholders was based upon the closing price of the Company's common stock at December 31, 2013, the last trading day prior to the date of acquisition.

Outstanding Principal Balance and Carrying Amount of Acquired Impaired Loans

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


Contractually required principal and interest payments	$	214,803
Nonaccretable difference		(34,696)
Cash flows expected to be collected		180,107
Accretable difference		(34,653)
Fair value of loans acquired with a deterioration of credit quality	$	145,454

Business Acquisition, Pro Forma Information

Further operating cost savings and other business synergies, including branch closures, as a result of the acquisition are not reflected in the pro forma amounts below (dollars in thousands):


	2013

Total revenues (net interest income plus noninterest income)	$	321,739
Net income	$	57,343

Summary of Acquisition-Related Expenses

A summary of acquisition-related expenses associated with the StellarOne acquisition included in the Consolidated Statements of Income is as follows (dollars in thousands):



	For the year ended
	December 31,
	2014		2013

Salaries and employee benefits	$	7,875	$	-
Professional services		3,736		2,132
Other costs of operations		8,734		-
Total	$	20,345	$	2,132

Schedule of Effect of Amortization and Accretion Related to Acquisition

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the years ended December 31, 2015, 2014, and 2013 (dollars in thousands):


		For the years ended
		December 31,
	2015		2014		2013
Loans (1)	$	4,355	$	586	$	2,728
Core deposit intangible (2)		(8,445)		(9,795)		(3,831)
Borrowings (3)		424		550		(489)
Time deposits (4)		1,843		8,914		7
Net impact to income before taxes	$	(1,823)	$	255	$	(1,585)

(1) Loan discount accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income.
(2) Core deposit intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company's Consolidated Statements of Income.
(3) Borrowings premium accretion and discount amortization are included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income.
(4) Certificate of deposit discount accretion is included in "Interest on deposits" in the "Interest expense" section of the Company's Consolidated Statements of Income.