Quarterly report pursuant to Section 13 or 15(d)

ACQUISITIONS

v3.2.0.727
ACQUISITIONS
 6 Months Ended
Jun. 30, 2015
ACQUISITIONS [Abstract]  
ACQUISITIONS

 

2.ACQUISITIONS

 

The Company’s merger and acquisition strategy focuses on high-growth areas with strong market demographics and targets organizations that have a comparable corporate culture, strong performance, and good asset quality, among other factors.  On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all-stock transaction.  StellarOne’s common shareholders received 0.9739 shares of the Company’s common stock in exchange for each share of StellarOne’s common stock, resulting in the Company issuing 22,147,874 shares of common stock at a fair value of $549.5 million.  The fair value of assets acquired totaled $2.96 billion and liabilities assumed totaled $2.64 billion. As a result of the transaction, StellarOne’s former bank subsidiary, StellarOne Bank, became a wholly owned bank subsidiary of the Company.  On May 9, 2014, StellarOne Bank was merged with and into the Bank.  Information regarding this acquisition is included in the Company’s 2014 Annual Report on Form 10-K. The Company did not complete any acquisitions of businesses in 2015.

 

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the three and six months ended June 30, 2015 and 2014 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended
June 30,

 

For the Six Months Ended
June 30,

 

2015

 

2014

 

2015

 

2014

Loans (1)

$
1,052 

 

$
(219)

 

$
1,691 

 

$
(765)

Core deposit intangible (2)

 
(2,138)

 

 
(2,456)

 

 
(4,361)

 

 
(5,072)

Borrowings (3)

 
137 

 

 
75 

 

 
275 

 

 
150 

Time deposits (4)

 
614 

 

 
2,460 

 

 
1,690 

 

 
5,381 

Net impact to income before taxes

$
(335)

 

$
(140)

 

$
(705)

 

$
(306)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Loan discount (premium) accretion (amortization) is included in “Interest and fees on loans” in the “Interest and dividend income” section of the Company's Consolidated Statements of Income.

(2) Core deposit intangible premium amortization is included in “Amortization of intangible assets” in the “Noninterest expense” section of the Company's Consolidated Statements of Income.

(3) Borrowings discount accretion is included in “Interest on long-term borrowings” in the “Interest Expense” section of the Company's Consolidated Statements of Income.

(4) Certificate of deposit discount accretion is included in “Interest on deposits” in the “Interest expense” section of the Company's Consolidated Statements of Income.