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Acquisition
 6 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
Acquisition

Note 15. Acquisition

On April 17, 2015, the Bank completed its acquisition of six branch banking operations located in Virginia from Bank of America, National Association (the Acquisition). The Bank paid cash of $6.6 million for the deposits and premises and equipment. The Bank acquired all related premises and equipment valued at $4.5 million and assumed $186.8 million of deposit liabilities. No loans were acquired in the transaction.

The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the Acquisition as additional information regarding the closing date fair values becomes available. The Bank engaged third party specialists to assist in valuing certain assets, including the real estate, core deposit intangible, and goodwill (bargain purchase gain) that resulted from the Acquisition.

The following table provides a preliminary assessment of the consideration transferred, assets purchased, and the liabilities assumed (in thousands):

 

     As Recorded by
Bank of
America		      Fair Value and
Other Merger
Related
Adjustments		      As Recorded by
the Company		  

Consideration paid:

         

Cash paid

          $ 6,618   
        

 

 

  

Total consideration

          $ 6,618   
        

 

 

  

Assets acquired:

         

Cash and cash equivalents

    $ 186,119       $ —         $ 186,119   

Premises and equipment, net

      2,165         2,330         4,495   

Other assets

      114         —           114   

Core deposit intangibles

      —           2,910         2,910   
  

 

 

     

 

 

     

 

 

  

Total assets acquired

    $ 188,398       $ 5,240       $ 193,638   
  

 

 

     

 

 

     

 

 

  

Liabilities assumed:

         

Deposits

    $ 186,119       $ 683       $ 186,802   

Other liabilities

      17         —           17   
  

 

 

     

 

 

     

 

 

  

Total liabilities assumed

    $ 186,136       $ 683       $ 186,819   
  

 

 

     

 

 

     

 

 

  

Net identifiable assets acquired over liabilities assumed

    $ 2,262       $ 4,557       $ 6,819   
  

 

 

     

 

 

     

 

 

  

Goodwill (bargain purchase gain)

          $ (201 ) 
        

 

 

  

The bargain purchase gain from the transaction may have resulted from Bank of America’s decision to no longer operate bank branches in certain markets and their willingness to sell the related premises and equipment lower than fair value.