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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Consideration paid and the net assets acquired in connection with the Peoples acquisition

The consideration transferred and the net assets acquired in connection with the Peoples acquisition are presented as of the acquisition date:


(Amounts in thousands, except per share data)
Consideration
Cash consideration		$	12,259
Common stock — 2,157,005 shares			26,469
Cash in lieu of fractional shares			2
Stock option consideration			1,547

Fair value of consideration paid		$	40,277

Identifiable assets
Cash and cash equivalents		$	81,834
Securities			2,917
Loans			166,609
Property, plant, and equipment			3,434
Other assets			11,354

Identifiable assets			266,148
Identifiable liabilities
Total deposits			234,146
Other liabilities			741

Identifiable liabilities			234,887
Identifiable net assets acquired			31,261

Goodwill recorded for acquisition		$	9,016

Acquired performing loans receivable at the acquisition date

The following table presents fair value of loans acquired from Peoples and Waccamaw at their acquisition date. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond:


		Peoples				Waccamaw
(Amounts in thousands)		May 31, 2012				June 8, 2012
Contractually required principal payments receivable		$	185,624			$	328,939
Fair value of adjustment for credit, interest rate, and liquidity			(19,015	)			(76,086	)

Fair value of loans receivable		$	166,609			$	252,853

Summary of acquisition related information

The following table presents unaudited proforma information as if the acquisition had occurred on January 1, 2011. The information presented does not necessarily reflect the results of operation that would have occurred had the acquisition been completed at the beginning of each fiscal period, nor does it indicate future consolidated results. For the three and six months ended June 30, 2012, the Company incurred merger related expenses related to the Peoples acquisition of $2.83 million and $2.99 million, respectively.


		For the Six Months Ended June 30, 2012
(Amounts in thousands)		First Community				Peoples				Proforma Adjustments				Proforma Combined
Interest income		$	46,013			$	5,479			$	—			$	51,492
Interest expense			9,212				1,521				(122	)			10,611

Net interest income			36,801				3,958				122				40,881
Provision for loan losses			2,542				100				—				2,642

Net interest income after provision for loan losses			34,259				3,858				122				38,239
Noninterest income			16,287				254				—				16,541
Noninterest expense ⁽¹⁾			33,188				2,932				2,988				39,108

Income (loss) before taxes			17,358				1,180				(2,866	)			15,672
Income tax expense (benefit)			5,852				397				(1,133	)			5,116

Net income (loss)			11,506				783				(1,733	)			10,556
Dividends on preferred stock			566				—				—				566

Net income (loss) available to common shareholders		$	10,940			$	783			$	(1,733	)		$	9,990


		For the Six Months Ended June 30, 2011
		First Community				Peoples				Proforma Adjustments				Proforma Combined
Interest income		$	47,925			$	6,337			$	—			$	54,262
Interest expense			11,896				1,800				(122	)			13,574

Net interest income			36,029				4,537				122				40,688
Provision for loan losses			4,691				750				—				5,441

Net interest income after provision for loan losses			31,338				3,787				122				35,247
Noninterest income			20,862				226				—				21,088
Noninterest expense ⁽¹⁾			35,801				2,489				2,988				41,278

Income (loss) before taxes			16,399				1,524				(2,866	)			15,057
Income tax expense (benefit)			4,920				513				(1,133	)			4,300

Net income (loss)			11,479				1,011				(1,733	)			10,757
Dividends on preferred stock			131				—				—				131

Net income (loss) available to common shareholders		$	11,348			$	1,011			$	(1,733	)		$	10,626

(1)	Proforma adjustments in noninterest expense result from merger related expense.

Assets acquired and liabilities assumed

The following table presents the assets acquired and liabilities assumed as of June 8, 2012, as recorded by Waccamaw on the acquisition date and as adjusted for purchase accounting adjustments:


(Amounts in thousands)		Balances Acquired from FDIC				Fair Value and Purchase Adjustments				Recorded Investment
Assets
Cash and due from banks⁽¹⁾		$	44,809			$	—			$	44,809
Interest-bearing deposits in banks			40,140				—				40,140

Total cash and cash equivalents			84,949				—				84,949
Securities available-for-sale			59,816				(194	)			59,622
Loans held for investment, net of unearned income			318,317				(65,464	)			252,853
FDIC receivable under loss share agreements			—				52,067				52,067
Property, plant, and equipment, net			4,102				—				4,102
Other real estate owned			9,347				(3,959	)			5,388
Interest receivable			1,363				—				1,363
Other assets			5,264				—				5,264

Total assets		$	483,158			$	(17,550	)		$	465,608

Liabilities
Deposits:
Noninterest-bearing		$	47,892			$	—			$	47,892
Interest-bearing			366,233				912				367,145

Total deposits			414,125				912				415,037
Securities sold under agreements to repurchase			17,042				3,040				20,082
FHLB advances			35,000				2,271				37,271
Other borrowings			345				—				345

Total liabilities		$	466,512			$	6,223			$	472,735

Net assets acquired over (under) liabilities assumed		$	16,646			$	(23,773	)		$	(7,127	)

Excess of net assets acquired over liabilities assumed		$	16,646

Aggregate fair value and purchase adjustments						$	(23,773	)

Goodwill on acquisition										$	7,127

(1)	Includes $17.27 million transferred to the FDIC in connection with the acquisition.