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Business Combinations and Branching Activity (Tables)
 12 Months Ended
Dec. 31, 2012
Consideration Transferred and Net Assets Acquired in Connection with 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 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

      166,471   

Property, plant, and equipment

      3,432   

Other assets

      10,295   
  

 

 

  

Identifiable assets

    $ 264,949   
  

 

 

  

Identifiable liabilities

   

Total deposits

      234,146   

Other liabilities

      741   
  

 

 

  

Identifiable liabilities

      234,887   

Identifiable net assets acquired

      30,062   
  

 

 

  

Goodwill recorded for acquisition

    $ 10,215   
  

 

 

  
Carrying Amount of Acquired Loans

The following table presents the carrying amount of acquired loans at May 31, 2012, which consist of loans with no credit deterioration, or performing loans, and loans with credit deterioration, or impaired loans.

 

     May 31, 2012  
     Purchased
Performing		      Purchased
Impaired		      Total  
(Amounts in thousands)                     

Commercial loans

         

Construction, development, and other land

    $ 9,641       $ 9,426       $ 19,067   

Commercial and industrial

      17,583         2,418         20,001   

Multi-family residential

      2,111         3,152         5,263   

Non-farm, non-residential

      75,399         12,193         87,592   
  

 

 

     

 

 

     

 

 

  

Total commercial loans

      104,734         27,189         131,923   

Consumer real estate loans

         

Home equity lines

      7,637         336         7,973   

Single family owner occupied

      18,767         5,078         23,845   
  

 

 

     

 

 

     

 

 

  

Total consumer real estate loans

      26,404         5,414         31,818   

Consumer and other loans

         

Consumer loans

      2,730         —           2,730   
  

 

 

     

 

 

     

 

 

  

Loans acquired at fair value

    $ 133,868       $ 32,603       $ 166,471   
  

 

 

     

 

 

     

 

 

  

 

The following table presents the carrying amount of acquired loans at June 8, 2012, which consist of loans with no credit deterioration, or performing loans, and loans with credit deterioration, or impaired loans. 

     June 8, 2012  
(Amounts in thousands)    Purchased
Performing		      Purchased
Impaired		      Total  

Commercial loans

         

Construction, development, and other land

    $ 19,690       $ 7,314       $ 27,004   

Commercial and industrial

      9,027         1,817         10,844   

Multi-family residential

      2,462         926         3,388   

Non-farm, non-residential

      45,768         24,440         70,208   

Agricultural

      321         2         323   

Farmland

      1,522         1,045         2,567   
  

 

 

     

 

 

     

 

 

  

Total commercial loans

      78,790         35,544         114,334   

Consumer real estate loans

         

Home equity lines

      21,439         68,081         89,520   

Single family owner occupied

      25,509         13,026         38,535   
  

 

 

     

 

 

     

 

 

  

Total consumer real estate loans

      46,948         81,107         128,055   

Consumer and other loans

         

Consumer loans

      9,540         921         10,461   
  

 

 

     

 

 

     

 

 

  

Loans acquired at fair value

    $ 135,278       $ 117,572       $ 252,850   
  

 

 

     

 

 

     

 

 

  
Acquired Performing Loans Receivable at Acquisition Date

The following table presents the acquired performing loans receivable at the acquisition date. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond:

 

     May 31, 2012  
(Amounts in thousands)       

Contractually required principal payments receivable

    $ 139,275   

Fair value of adjustment for credit, interest rate, and liquidity

      (5,407 ) 
  

 

 

  

Fair value of performing loans receivable

    $ 133,868   
  

 

 

  

The following table presents the acquired performing loans receivable at the acquisition date. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond: 

     June 8, 2012  
(Amounts in thousands)       

Contractually required principal payments receivable

    $ 151,883   

Fair value of adjustment for credit, interest rate, and liquidity

      (16,605 ) 
  

 

 

  

Fair value of performing loans receivable

    $ 135,278   
  

 

 

  

 
Acquisition Proforma Information
The following table presents proforma information as if the acquisition had occurred on January 1, 2011.

 

     Actual Since
Acquisition through
December 31, 2012		      Proforma Year Ended
December 31,		  
        2012      2011  
(Amounts in thousands)                     

Total revenues

    $ 6,906       $ 151,201       $ 144,170   

Net income

      2,635         28,263         22,743   

 
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

      60,002         —          60,002   

Loans held for investment, net of unearned income

      318,348         (65,498 )      252,850   

FDIC receivable under loss share agreements

      —           49,755        49,755   

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         (194 )      5,070   
  

 

 

     

 

 

    

 

 

  

Total assets

    $ 483,375       $ (19,896 )    $ 463,479   
  

 

 

     

 

 

    

 

 

  

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         1,646        1,991   
  

 

 

     

 

 

    

 

 

  

Total Liabilities

    $ 466,512       $ 7,869      $ 474,381   
  

 

 

     

 

 

    

 

 

  

Net assets acquired over (under) liabilities assumed

    $ 16,863       $ (27,765 )    $ (10,902 ) 
  

 

 

     

 

 

    

 

 

  

Excess of net assets acquired over liabilities assumed

    $ 16,863        
  

 

 

       

Aggregate fair value and purchase adjustments

       $ (27,765 )   
     

 

 

    

 

 

  

Goodwill on acquisition

         $ 10,902   
       

 

 

  

 

(1) Includes $17.27 million transferred to the FDIC in connection with the acquisition.
Impaired Loans Receivable at Acquisition

The following table presents the acquired impaired loans receivable at acquisition. The Company has not noted any further deterioration in the acquired impaired loan portfolio.

 

     May 31, 2012  
(Amounts in thousands)       

Contractually required payments receivable

    $ 48,826   

Nonaccretable difference

      (12,823 ) 
  

 

 

  

Cash flows expected to be collected

      36,003   

Accretable difference

      (3,400 ) 
  

 

 

  

Fair value of acquired impaired loans

    $ 32,603   
  

 

 

  

 

The following table presents the acquired impaired loans receivable at acquisition. The Company has not noted any further deterioration in the acquired impaired loan portfolio.

 

     June 8, 2012  
(Amounts in thousands)       

Contractually required payments receivable

    $ 211,042   

Nonaccretable difference

      (66,989 ) 
  

 

 

  

Cash flows expected to be collected

      144,053   

Accretable difference

      (26,481 ) 
  

 

 

  

Fair value of acquired impaired loans

    $ 117,572   
  

 

 

  
Net Cash Paid (Received) for Acquisitions

Net cash paid (received) for acquisitions include transactions that occurred during the current and prior years.

 

     2012     2011     2010  
(Amounts in thousands)                   

Fair value of investments acquired

    $ 62,919      $ —        $ —     

Fair value of loans acquired

      419,320        —          —     

Fair value of premises and equipment acquired

      7,535        —          —     

Fair value of other assets

      255,924        —          —     

Fair value of deposits assumed

      (649,184 )      —          —     

Fair value of other liabilities assumed

      (60,085 )      —          —     

Purchase price in excess of net assets acquired

      21,810        680        1,650   
  

 

 

    

 

 

    

 

 

  

Total purchase price

      58,239        680        1,650   

Less non-cash purchase price

      26,469        —          768   

Less cash acquired

      184,053        —          —     
  

 

 

    

 

 

    

 

 

  

Net cash (received) paid for acquisition

    $ (152,283 )    $ 680      $ 882   
  

 

 

    

 

 

    

 

 

  

Book value of assets sold

    $ —        $ (1,678 )    $ —     

Book value of liabilities sold

      —          170        —     

Sales price in excess of net liabilities assumed

      —          (67 )      —     
  

 

 

    

 

 

    

 

 

  

Total sales price

      —          (1,575 )      —     

Add cash on hand sold

      —          —          —     

Less amount due remaining on books

      —          60        —     
  

 

 

    

 

 

    

 

 

  

Net cash paid (received) for divestiture

    $ —        $ (1,515 )    $ —