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Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2013
Acquisitions and Divestitures
Note 2. Acquisitions and Divestitures

Peoples Bank of Virginia

On May 31, 2012, the Company completed the acquisition of Peoples, based in Richmond, Virginia. Peoples, a full service community bank, operated 4 branches throughout the Richmond area. At acquisition, Peoples had total assets of $275.76 million, loans of $184.84 million, and deposits of $232.75 million. The purchase price was $40.28 million, including common stock valued at $26.47 million and cash consideration of $12.26 million. The Company issued 2,157,005 shares of common stock with an estimated fair value of $12.27 per share. Each outstanding share of Peoples was exchanged for $6.08 in cash and 1.07 shares of the Company’s common stock. The Company recorded goodwill of $10.32 million from the acquisition.

Waccamaw Bank

On June 8, 2012, the Company entered into a purchase and assumption agreement with loss share arrangements with the FDIC to purchase certain assets and assume substantially all of the deposits and certain liabilities of Waccamaw, headquartered in Whiteville, North Carolina. Waccamaw, a full service community bank, operated 16 branches throughout North Carolina and South Carolina. At acquisition, Waccamaw had total assets of $500.64 million, loans of $318.35 million, and deposits of $414.13 million. Under the loss share agreements, the FDIC covers 80% of most loan and foreclosed real estate losses. The Company recorded an indemnification asset of $49.76 million at acquisition representing the present value of estimated losses on covered assets to be reimbursed by the FDIC. The Company recorded goodwill of $10.62 million from the acquisition.

 

Insurance Services

In 2013 the Company issued cash consideration of $150 thousand to purchase one agency. The acquisition terms call for further cash consideration of $253 thousand if certain operating targets are met. The fair value of these payments was booked at acquisition and added $324 thousand of goodwill and other intangibles to the Company’s consolidated balance sheet as of December 31, 2013. In 2011 Greenpoint received cash of $1.58 million from the sale of two agencies.

Acquisitions that occurred before 2009 call for issuing further cash consideration if certain operating targets are met. If those targets are met, the value of the consideration will be added to the cost of the acquisition. Earn-out payments related to these acquisitions totaled $442 thousand in 2013, $692 thousand in 2012, and $680 thousand in 2011.

Net Cash Paid (Acquired) in Acquisitions and Divestitures

The following table presents the components of net cash acquired, or paid, in acquisitions and divestitures, an investing activity in the Company’s statements of cash flows, in the periods indicated:

 

     Year Ended December 31,  
(Amounts in thousands)        2013          2012     2011  

Acquisitions

        

Fair value of assets and liabilities acquired:

        

Investments

    $ —         $ 62,919      $ —     

Loans

      281         419,320        —     

Premises and equipment

      —           7,535        —     

Other assets

      —           255,924        —     

Deposits

      —           (649,184 )      —     

Other liabilities

      —           (60,085 )      —     

Purchase price in excess of net assets acquired

      663         21,810        680   
  

 

 

     

 

 

    

 

 

  

Total purchase price

      944         58,239        680   

Non-cash purchase price

      247         26,469        —     

Cash acquired

      —           184,053        —     
  

 

 

     

 

 

    

 

 

  

Net cash paid (acquired) in acquisitions

      697         (152,283 )      680   

Divestitures

        

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 ) 

Cash sold

      —           —          —     

Amount due remaining on books

      —           —          60   
  

 

 

     

 

 

    

 

 

  

Net cash acquired in divestitures

      —           —          (1,515 ) 
  

 

 

     

 

 

    

 

 

  

Net cash paid (acquired) in acquisitions and divestitures

    $ 697       $ (152,283 )    $ (835 )