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Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2015
Acquisitions and Divestitures
Note 2. Acquisitions and Divestitures

Bank of America

On October 24, 2014, the Company completed the acquisition of seven branches from Bank of America, National Association. At acquisition, the branches had total deposits of $318.88 million. The Company assumed the deposits for a premium of $5.79 million. No loans were included in the purchase. Additionally, the Company purchased the real estate or assumed the leases associated with the branches. The acquisition expands the Company’s presence by six branches in Southwestern Virginia and one branch in Central North Carolina.

CresCom Bank

On December 12, 2014, the Company completed the sale of thirteen branches to CresCom Bank (“CresCom”), Charleston, South Carolina. The divestiture consisted of ten branches in the Southeastern, Coastal region of North Carolina and three branches in South Carolina, all of which were previously acquired in the FDIC-assisted acquisition of Waccamaw on June 8, 2012. At closing, CresCom assumed total deposits of $215.19 million and total loans of $70.04 million. The transaction excluded loans covered under FDIC loss share agreements. The Company recorded a net gain of $755 thousand in connection with the divestiture, which included a deposit premium received from CresCom of $6.45 million and goodwill allocation of $6.45 million.

Insurance Services

On October 31, 2015, the Company sold one insurance agency for $372 thousand. The Company recorded a net loss of $8 thousand in connection with the sale and eliminated $324 thousand in goodwill and $61 thousand in other intangibles on the Company’s consolidated balance sheet as of December 31, 2015. The agency was previously purchased in 2013 for $385 thousand, which included $150 thousand in immediate cash consideration and $235 thousand in further cash consideration if certain operating targets were met.

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 $88 thousand in 2015, $353 thousand in 2014, and $442 thousand in 2013.

 

Net Cash Paid (Received) 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)        2015          2014      2013  

Acquisitions

         

Fair value of assets and liabilities acquired:

         

Investments

    $ —         $ —         $ —     

Loans

      —           140         281   

Premises and equipment

      —           4,547         —     

Other assets

      —           4,563         —     

Deposits

      —           (318,877 )       —     

Other liabilities

      —           (76 )       —     

Purchase price in excess of net assets acquired

      88         1,721         663   
  

 

 

     

 

 

     

 

 

  

Total purchase price

      88         (307,982 )       944   

Non-cash purchase price

      —           —           247   

Cash acquired

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Net cash paid (received) in acquisitions

      88         (307,982 )       697   

Divestitures

         

Book value of assets sold

      389         (83,283 )       —     

Book value of liabilities sold

      (152 )       215,268         —     

Sales price in excess of net liabilities assumed

      (6 )       (755 )       —     
  

 

 

     

 

 

     

 

 

  

Total sales price

      231         131,230         —     

Cash sold

      —           (1,852 )       —     

Amount due remaining on books

      (231 )       —           —     
  

 

 

     

 

 

     

 

 

  

Net cash paid in divestitures

      —           129,378         —     
  

 

 

     

 

 

     

 

 

  

Net cash paid (received) in acquisitions and divestitures

    $ 88       $ (178,604 )     $ 697