Business Combinations (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed

A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows:

(Dollars in thousands)
Assets acquired:
Cash and cash equivalents	$	57,671
Securities		161,693
Loans		460,775
FHLB and Federal Reserve Bank stock		550
Premises and equipment		23,940
Other real estate owned		3,105
Intangible assets		7,238
Bank-owned life insurance		6,400
Deferred income taxes		4,511
Other assets		10,022
		735,905
Liabilities assumed:
Deposits		652,952
Junior subordinated debentures		7,728
Other liabilities		6,784
		667,464
Fair value of net assets acquired		68,441
Cash paid		70,000
TARP Preferred Stock assumed		10,500
Consideration transferred		80,500
Goodwill	$	12,059

Summary of Acquired Loans

The following table presents details on acquired loans at the acquisition date:

	Loans, Excluding		PCI		Total
(Dollars in thousands)	PCI Loans		Loans		Loans
Commercial real estate	$	86,569	$	10,907	$	97,476
Construction, land development, land		58,718		2,933		61,651
1-4 family residential properties		36,412		91		36,503
Farmland		100,977		233		101,210
Commercial		151,605		5,129		156,734
Factored receivables		694		—		694
Consumer		6,507		—		6,507
	$	441,482	$	19,293	$	460,775

Schedule of Pro Forma Information on Acquisition

The following table presents pro forma information for the three and nine months ended September 30, 2016 and 2015 as if the ColoEast acquisition had occurred at the beginning of 2015. The pro forma information includes adjustments for interest income on loans acquired, interest expense on junior subordinated debentures assumed, depreciation expense on property acquired, amortization of intangibles arising from the transaction, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been completed on the assumed date.

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Net interest income	$	32,792	$	29,941	$	94,778	$	87,443
Noninterest income	$	6,131	$	7,098	$	16,463	$	28,507
Net income	$	4,677	$	6,809	$	14,959	$	25,740
Basic earnings per common share	$	0.25	$	0.37	$	0.80	$	1.42
Diluted earnings per common share	$	0.24	$	0.37	$	0.79	$	1.39

ColoEast Bankshares, Inc. | Non-Purchase Credit Impaired Loans

Business Acquisition [Line Items]

Schedule of Loans Acquired in Business Combination

The following presents information at the acquisition date for non-purchase credit impaired loans acquired in the transaction:

(Dollars in thousands)
Contractually required principal and interest payments	$	530,404
Contractual cash flows not expected to be collected	$	21,272
Fair value at acquisition	$	441,482

ColoEast Bankshares, Inc. | Purchased Credit Impaired Loans

Business Acquisition [Line Items]

Schedule of Loans Acquired in Business Combination

Information about the acquired loan portfolio subject to purchase credit impaired accounting guidance as of August 1, 2016 is as follows

(Dollars in thousands)
Contractually required principal and interest payments	$	25,124
Contractual cash flows not expected to be collected (nonaccretable difference)		1,707
Expected cash flows at acquisition		23,417
Interest component of expected cash flows (accretable difference)		4,124
Fair value of loans acquired with deterioration of credit quality	$	19,293

Doral Money Acquisition

Business Acquisition [Line Items]

Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed

A summary of the fair values of assets acquired, liabilities assumed, net consideration transferred, and the resulting bargain purchase gain is as follows:

	Initial Values			Measurement
	Recorded at			Period			Adjusted
(Dollars in thousands)	Acquisition Date			Adjustments			Values
Assets acquired:
Cash	$	8,273		$	—		$	8,273
CLO Securities		98,316			—			98,316
Intangible asset - CLO management contracts		1,918			—			1,918
Loans		36,765			900			37,665
Prepaid corporate income tax		3,014			1,688			4,702
Other assets		772			—			772
		149,058			2,588			151,646
Liabilities assumed:
Deferred tax liability		663			—			663
Other liabilities		22			(20	)		2
		685			(20	)		665
Fair value of net assets acquired		148,373			2,608			150,981
Net consideration transferred		135,864			—			135,864
Bargain purchase gain	$	(12,509	)	$	(2,608	)	$	(15,117	)