v3.8.0.1
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Schedule of Assets Acquired and Liabilities Assumed

The following table represents the assets acquired and liabilities assumed of C1B as of November 10, 2017 and the fair value adjustments and amounts recorded by the Bank in 2017 under the acquisition method of accounting:

 

C1B Book Value

 

Fair Value Adjustments

 

Fair Value

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Assets Acquired:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

91,018

 

 

$

—

 

 

$

91,018

 

Securities AFS

 

114,796

 

 

 

(583

)

 

 

114,213

 

Loans, net of deferred fees

 

230,203

 

 

 

(2,979

)

 

 

227,224

 

Allowance for loan losses

 

(3,097

)

 

 

3,097

 

 

 

—

 

Premises and equipment, net

 

1,636

 

 

 

(1,636

)

 

 

—

 

Deferred taxes

 

1,288

 

 

 

(738

)

 

 

550

 

REO

 

248

 

 

 

(248

)

 

 

—

 

Goodwill

 

—

 

 

 

26,000

 

 

 

26,000

 

Core deposit intangible

 

—

 

 

 

5,793

 

 

 

5,793

 

FHLB stock and other stock holdings

 

2,116

 

 

 

(140

)

 

 

1,976

 

Other assets

 

8,556

 

 

 

(641

)

 

 

7,915

 

Total assets acquired

$

446,764

 

 

$

27,925

 

 

$

474,689

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities Assumed:

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

411,463

 

 

$

98

 

 

$

411,561

 

Borrowings

 

7,857

 

 

 

143

 

 

 

8,000

 

Accounts payable and other liabilities

 

4,931

 

 

 

(1,674

)

 

 

3,257

 

Total liabilities assumed

 

424,251

 

 

 

(1,433

)

 

 

422,818

 

Excess of assets acquired over liabilities assumed

 

22,513

 

 

 

29,358

 

 

 

51,871

 

Total

$

446,764

 

 

$

27,925

 

 

$

474,689

 

 

 

 

 

 

 

 

 

 

 

 

 

Consideration:

 

 

 

 

 

 

 

 

 

 

 

Stock issued

 

 

 

 

 

 

 

 

$

51,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Schedule of Loans Acquired

For loans acquired from C1B, the contractual amounts due, expected cash flows to be collected and fair value as of the acquisition date were as follows:

(dollars in thousands)

 

Purchased

Credit Impaired

 

All Other Acquired Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual amounts due

 

$

3,718

 

 

$

302,537

 

Cash flows not expected to be collected

 

 

955

 

 

 

3,687

 

Expected cash flows

 

 

2,763

 

 

 

298,850

 

Interest component of expected cash flows

 

 

603

 

 

 

73,786

 

Fair value of acquired loans

 

$

2,160

 

 

$

225,064

 

 

 

 

 

 

 

 

 

 

 
Pro Forma Summarized Income Statement Data

The following table presents unaudited pro forma information as if the (i) acquisition of C1B had occurred on January 1, 2017, January 1, 2016 and January 1, 2015, for 2017, 2016 and 2015, respectively, after giving effect to certain adjustments and (ii) the acquisition of Pacific Rim Rank (“PRB”) had occurred on January 1, 2015 for 2015, after giving effect to certain adjustments.   The unaudited pro forma information for these periods includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, adjustments for interest expense on deposits acquired, and the related income tax effects of all these items and the income tax costs or benefits derived from the income or loss before taxes of C1B and PRB. The net effect of these pro forma adjustments were decreases of $0.5 million, $0.7 million and $0.3 million in net income for 2017, 2016 and 2015, respectively. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates.

 

 

 

2017

 

2016

 

2015

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

123,809

 

 

$

98,663

 

 

$

67,843

 

Provision for loan losses

 

 

2,882

 

 

 

4,911

 

 

 

2,673

 

Noninterest income

 

 

39,242

 

 

 

35,169

 

 

 

29,453

 

Noninterest expenses

 

 

109,103

 

 

 

89,705

 

 

 

71,674

 

Income before taxes

 

 

51,066

 

 

 

39,216

 

 

 

22,949

 

Taxes on income

 

 

23,229

 

 

 

15,377

 

 

 

9,503

 

Net income

 

$

27,837

 

 

$

23,839

 

 

$

13,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.75

 

 

$

0.67

 

 

$

0.52

 

Diluted

 

$

0.74

 

 

$

0.65

 

 

$

0.50