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Mergers and Acquisitions (Tables) | 12 Months Ended
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Dec. 31, 2016
Business Combinations [Abstract] |
Allocation of the Purchase Price | The allocation of the purchase price is as follows:
(Dollars in thousands) |  |  |
Assets acquired: |  |  |  |
Cash and cash equivalents |  | $ | 11,044 |
Investment securities |  |  | 11,331 |
Loans |  |  | 110,363 |
Goodwill |  |  | 2,902 |
Core deposit and other intangibles |  |  | 578 |
Other assets |  |  | 7,489 |
Total assets acquired |  |  | 143,707 |
Liabilities assumed: |  |  |  |
Deposits |  |  | 123,238 |
FHLB borrowings |  |  | 3,570 |
Other liabilities |  |  | 908 |
Total liabilities assumed |  |  | 127,716 |
Equity acquired: |  |  |  |
Preferred stock |  |  | 1,750 |
Total equity acquired and liabilities assumed |  |  | 129,466 |
Consideration paid |  | $ | 14,241 |
Cash paid |  | $ | 2,949 |
Fair value of common stock issued, including replacement equity awards |  |  | 11,292 |
Summary of the Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities and equity assumed.
(Dollars in thousands) |  |  |
Total purchase price |  | $ | 14,241 |
Net assets acquired: |  |  |  |
Cash and cash equivalents |  |  | 11,044 |
Investment securities |  |  | 11,331 |
Restricted stock |  |  | 509 |
Loans |  |  | 110,363 |
Bank owned life insurance |  |  | 3,673 |
Premises and equipment |  |  | 1,792 |
Deferred income taxes |  |  | 503 |
Accrued interest receivable |  |  | 388 |
Core deposit and other intangibles |  |  | 578 |
Other assets |  |  | 624 |
Deposits |  |  | (123,238 | )
FHLB borrowings |  |  | (3,570 | )
Accrued interest payable |  |  | (32 | )
Other liabilities |  |  | (876 | )
Preferred stock |  |  | (1,750 | )
|  |  | 11,339 |
Goodwill |  | $ | 2,902 |
Fair Value Adjustments Made to the Amortized Cost Basis, Presented at the Fair Value of Loans Acquired | The fair value of the financial assets acquired included loans receivable with a gross amortized cost basis of $112,816,000. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired.
(Dollars in thousands) |  |  |
Gross amortized cost basis at March 1, 2015 |  | $ | 112,816 |
Market rate adjustment |  |  | 270 |
Credit fair value adjustment on pools of homogeneous loans |  |  | (1,461 | )
Credit fair value adjustment on impaired loans |  |  | (1,262 | )
Fair value of purchased loans at March 1, 2015 |  | $ | 110,363 |
Fair Value of the Loans Acquired | The information about the acquired Phoenix loans accounted for under ASC 310-30 as of March 1, 2015 is as follows:
(Dollars in thousands) |  |  |
Contractually required principal and interest at acquisition |  | $ | 3,548 |
Contractual cash flows not expected to be collected (nonaccretable discount) |  |  | (804 | )
Expected cash flows at acquisition |  |  | 2,744 |
Interest component of expected cash flows (accretable discount) |  |  | (458 | )
Fair value of acquired loans |  | $ | 2,286 |
Unaudited Pro Forma Information | The following table presents unaudited pro forma information as if the merger between Mid Penn and Phoenix had been completed on January 1, 2014. The pro forma information does not necessarily reflect the results of operations that would have occurred had Mid Penn merged with Phoenix at the beginning of 2014. Supplemental pro forma earnings for 2015 were adjusted to exclude $762,000 of merger related costs incurred for the year ended December 31, 2015; the results for the year ended December 31, 2014 were adjusted to include these charges. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies, or other factors. The pro forma data is intended for informational purposes and is not indicative of the future results of operations.
|  | (Unaudited) |
|  | Years Ended December 31, |
(Dollars in thousands, except per share data) |  | 2015 |  |  | 2014 |
Net interest income after loan loss provision |  | $ | 31,454 |  |  | $ | 29,745 |
Noninterest income |  |  | 4,152 |  |  |  | 4,131 |
Noninterest expense |  |  | 27,817 |  |  |  | 26,846 |
Net income available to common shareholders |  |  | 5,811 |  |  |  | 5,259 |
Net income per common share |  |  | 1.38 |  |  |  | 1.25 |

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- Definition Tabular disclosure of the nature and amount of any material, nonrecurring adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(4) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
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