Merger (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Estimated Amortization Expense

Estimated amortization expense for each of the next five years and thereafter is as follows:

	MSRs		Core deposit intangibles		Total
2018	$	22	$	281	$	303
2019		88		945		1,033
2020		88		914		1,002
2021		87		891		978
2022		87		868		955
Thereafter		1,307		4,070		5,377
	$	1,679	$	7,969	$	9,648

Schedule of Financial Information for Former UCB Included in Consolidated Statements of Income

The following table presents financial information for the former UCB included in the Consolidated Statements of Income from the date of acquisition through September 30, 2018.

	Actual From Acquisition Date Through September 30, 2018
	(in thousands)
Net interest income after provision for loan losses	$	432
Noninterest income		7
Net income		298

Business Acquisition, Pro Forma Information

The following table presents pro forma information for the nine- and three-month periods ended September 30, 2018 and 2017 as if the acquisition of UCB had occurred on January 1, 2017. This table has been prepared for comparative purposes only and is not indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results.

	Pro Formas				Pro Formas
	Nine months ended September 30,				Three months ended September 30,
	2018		2017		2018			2017
Net interest income after provision for loan losses	$	54,340	$	50,809	$	17,236		$	17,378
Noninterest income		13,493		16,015		1,158			4,565
Net income		5,895		14,679		(5,708	)		4,522
Pro forma earnings per share:
Basic	$	0.47	$	1.40	$	(0.51	)	$	0.41
Diluted	$	0.46	$	1.20	$	(0.51	)	$	0.36

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for UCB. Core deposit intangibles will be amortized over periods of between ten years using an accelerated method. Goodwill will not be amortized, but instead will be evaluated for impairment. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition. Merger and acquisition integration costs and amortization of fair value adjustments net of the related income tax effects are included in the amounts below.

Consideration paid				$	117,344

Net assets acquired:
Cash and due from financial institutions	$	156,472
Securities available for sale		43,214
Equity securities		212
Loans held for sale		492
Loans, net		298,319
Other securities		3,527
Premises and equipment		5,291
Accrued interest receivable		950
Core deposit intangible		7,518
Bank owned life insurance		17,193
Other assets		10,896
Noninterest-bearing deposits		(226,795	)
Interest-bearing deposits		(249,149	)
Other liabilities		(17	)
					68,123
Goodwill resulting from UCB merger				$	49,221

UCB [Member]

Schedule of Estimated Amortization Expense

As of September 30, 2018, the current year and estimated future amortization expense for the core deposit intangible is as follows:

	Core deposit intangibles
2018	$	255
2019		857
2020		842
2021		823
2022		800
Thereafter		3,941
	$	7,518