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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates

The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands):

															At January 31, 2019
															Fair Value
Total purchase price:															$	76,834
Assets acquired:
Cash and cash equivalents															$	59,748
Securities															103,775
Loans															307,300
Accrued interest receivable															1,390
Bank owned life insurance															10,460
Deferred tax asset															4,101
Other assets															4,980
Core deposit intangible															2,662
Total assets acquired															494,416
Liabilities assumed:
Deposits															(449,018)
Other liabilities															(5,210)
Total liabilities assumed															(454,228)
Net assets acquired															$	40,188
Goodwill recorded in the merger															$	36,646

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Two River, net of total consideration paid (in thousands):

												At January 1, 2020
															Estimated Fair Value
Total purchase price:															$	197,050
Assets acquired:
Cash and cash equivalents															$	51,102
Securities															64,381
Loans															940,072
Accrued interest receivable															2,382
Bank owned life insurance															22,440
Deferred tax asset															3,578
Other assets															15,956
Core deposit intangible															12,130
Total assets acquired															1,112,041
Liabilities assumed:
Deposits															(941,750)
Other liabilities															(59,006)
Total liabilities assumed															(1,000,756)
Net assets acquired															$	111,285
Goodwill recorded in the merger															$	85,765

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Country Bank, net of total consideration paid (in thousands):

												At January 1, 2020
															Estimated Fair Value
Total purchase price:															$	112,836
Assets acquired:
Cash and cash equivalents															$	20,799
Securities															144,499
Loans															618,408
Accrued interest receivable															1,779
Deferred tax asset															(4,087)
Other assets															9,195
Core deposit intangible															2,117
Total assets acquired															792,710
Liabilities assumed:
Deposits															(652,653)
Other liabilities															(67,240)
Total liabilities assumed															(719,893)
Net assets acquired															$	72,817
Goodwill recorded in the merger															$	40,019

Summary of Business Acquisition, Pro Forma Information

The following table presents financial information regarding the former Two River and Country Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 1, 2020) through September 30, 2020. The table also presents financial information regarding the former Capital Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2019) through September 30, 2020. In addition, the table provides unaudited condensed pro forma financial information assuming the Two River, Country Bank, and Capital Bank acquisitions had been completed as of January 1, 2019 for the nine months ended September 30, 2019. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Two River, Country Bank, and Capital Bank’s operations. The pro forma information shown reflects adjustments related to certain purchase accounting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects.

(in thousands)			Two River Actual for Nine Months Ended September 30, 2020						Country Bank Actual for Nine Months Ended September 30, 2020						Capital Bank Actual from February 1, 2019 to September 30, 2019									Pro Forma Nine Months Ended September 30, 2019
Net interest income			$	31,354					$	20,456					$	12,700								$	247,550
Credit loss expense			6,471						4,398						280									2,211
Non-interest income			1,886						408						991									35,010
Non-interest expense			23,422						14,470						11,035									176,294
Provision for income taxes			809						482						499									20,233
Net income			$	2,538					$	1,514					$	1,877								$	83,822
Fully diluted earnings per share																								$	1.36

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

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- References

No definition available.

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X

- Definition

Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1486-128463

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

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