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Merger, Acquisitions and Branching Activity

12 Months Ended

Dec. 31, 2011

Merger, Acquisitions and Branching Activity [Abstract]

Merger, Acquisitions and Branching Activity

Note 2.

Merger, Acquisitions, and Branching Activity

In July 2009, the Company acquired TriStone Community Bank (“TriStone”), based in Winston-Salem, North Carolina. TriStone had two full service locations in Winston-Salem, North Carolina. At acquisition, TriStone had total assets of $166.82 million, total loans of $132.23 million and total deposits of $142.27 million. Shares of TriStone were exchanged for .5262 shares of the Company’s Common Stock and the overall acquisition cost was $10.78 million. The acquisition of TriStone significantly augmented the Company’s market presence and human resources in the Winston-Salem, North Carolina region. The Company recorded a $4.49 million gain on the acquisition of TriStone.

Greenpoint has acquired seven insurance agencies and sold three since its acquisition by the Company. In 2011, Greenpoint sold two insurance agencies. Cash received from those sales totaled $1.58 million resulting in a net gain of $67 thousand and has the potential to recognize an additional $650 thousand over time as earn-out payments are received. The sales eliminated $1.68 million of goodwill and intangible assets to the Company’s balance sheet during 2011. Greenpoint issued aggregate cash consideration of $190 thousand in 2010 in connection with acquisitions. For acquisitions prior to 2009, terms call for issuing further cash consideration of $2.14 million if certain operating targets are met. If those targets are met, the value of the consideration ultimately paid will be added to the costs of the acquisitions. Acquisitions prior to 2011 added $680 thousand, $1.17 million, and $803 thousand of goodwill and intangibles to the Company’s balance sheet in 2011, 2010, and 2009, respectively. The acquisition of Greenpoint in 2007, and its subsequent acquisitions and dispositions, have added $9.40 million of goodwill and intangibles to the Company’s balance sheet, net of corresponding amortization of $1.31 million.

The following table summarizes the net cash provided by or used in acquisitions and divestitures during the three years ended December 31, 2011. Net cash paid (received) for acquisitions include transactions that occurred during the current and prior years.


	2011			2010		2009
(Amounts in thousands)
Fair value of investments acquired	$	—		$	—	$	7,837
Fair value of loans acquired		—			—		129,937
Fair value of premises and equipment acquired		—			—		1,797
Fair value of other assets		—			—		26,746
Fair value of deposits assumed		—			—		(142,697	)
Fair value of other liabilities assumed		—			—		(9,008	)
Purchase price in excess of (less than) net assets acquired		680			1,650		(3,037	)

Total purchase price		680			1,650		11,575

Less non-cash purchase price		—			768		11,579
Less cash acquired		—			—		21,295

Net cash paid (received) for acquisition	$	680		$	882	$	(21,299	)


Book value of assets sold	$	(1,678	)	$	—	$	(110	)
Book value of liabilities sold		170			—		—
Sales price in excess of net liabilities assumed		(67	)		—		(340	)

Total sales price		(1,575	)		—		(450	)

Add cash on hand sold		—			—		—
Less amount due remaining on books		60			—		—

Net cash paid (received) for divestiture	$	(1,515	)	$	—	$	(450	)