Note

Acquisitions

and

Divestitures

The following table presents the components of net cash received in, or paid for, acquisitions and divestitures, an investing activity in the Company

’s consolidated statements of cash flows, for the periods indicated. There was

acquisition or divestiture activity recorded in

2017.

	Year Ended December 31,
(Amounts in thousands)	2016			2015
Acquisitions
Fair value of assets and liabilities acquired:
Loans	$	149,122		$	-
Premises and equipment		4,829			-
Other assets		448			-
Other intangible assets		3,842			-
Deposits		(134,307	)		-
Other liabilities		(75	)		-
Purchase price in excess of net assets acquired		2,446			88
Total purchase price		26,305			88
Non-cash purchase price		-			-
Cash acquired		-			-
Net cash paid in acquisitions		26,305			88
Divestitures
Book value of assets sold		(165,742	)		389
Book value of liabilities sold		111,198			(152	)
Sales price in excess of net liabilities assumed		(3,682	)		(6	)
Total sales price		(58,226	)		231
Cash sold		-			-
Amount due remaining on books		2,205			(231	)
Net cash received in divestitures		(56,021	)		-
Net cash (received) paid in acquisitions and divestitures	$	(29,716	)	$	88

Ascension Insurance Agency, Inc.

October 1,

2016,

the Company completed the sale of Greenpoint Insurance Group, Inc. (“Greenpoint”) to Ascension Insurance Agency, Inc. for

$7.11

million, including earn-out payments of

$2.21

million to be received over

three

years if certain operating targets are met. The divestiture consisted of

two

North Carolina offices operating as Greenpoint and

two

Virginia offices operating under the trade name Carr & Hyde Insurance. The Company recorded a net gain of

$617

thousand in connection with the divestiture and eliminated

$6.49

million in goodwill and other intangible assets. The Company incurred expenses related to the divestiture of

$46

thousand in

2016.

The transaction did

not

impact the Company’s in-branch insurance offices operating as FCIS in West Virginia and Virginia.

October 31, 2015,

the Company sold

one

insurance agency for

$372

thousand.

The Company recorded a net loss of

thousand in connection with the sale and eliminated

$385

thousand in goodwill and other intangible assets. In addition, the Company recorded additional goodwill of

$88

thousand in

2015

related to contingent earn-out payments from acquisitions that occurred before

2009.

First Bank

July 15, 2016,

the Company completed

a branch exchange with First Bank, North Carolina, pursuant to which the Bank exchanged a portion of its North Carolina branch network for First Bank’s Virginia branch network. Under the agreements, the Bank simultaneously sold

six

branches in the Winston-Salem and Mooresville areas of North Carolina and acquired

seven

branches in Southwestern Virginia. The branch acquisition complements the Company’s

2014

acquisition of

seven

branches from Bank of America by expanding the Company’s existing presence in Southwest Virginia and affords the opportunity to realize certain operating cost savings.

In connection with the branch exchange, t

he Company acquired total assets of

$160.69

million, including total loans of

$149.12

million and goodwill and other intangibles of

$6.29

million, and total liabilities of

$134.38

million, including total deposits of

$134.31

million. The Company did

not

acquire any PCI loans. The consideration transferred included the net fair value of divested assets and a purchase premium of

$3.84

million. The Company divested total assets of

$162.17

million, including loans of

$155.54

million and goodwill and other intangibles of

$2.33

million, and total liabilities of

$111.05

million, including deposits of

$111.02

million, and received a deposit premium of

$4.07

million. In connection with the divestiture, the Company recorded a net gain of

$3.07

million. The Company incurred expenses related to the First Bank transaction of

$684

thousand in

2016.