ACQUISITIONS (Tables)
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12 Months Ended |
Dec. 31, 2015 |
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| ACQUISITIONS [Abstract] |
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| Schedule of Business Acquisition and the Amounts of Acquired Identifiable Assets and Liabilities |
The following table provides an assessment of the assets purchased, liabilities assumed, and the consideration transferred (dollars in thousands, except share and per share data):
Statement of Net Assets Acquired (at fair value) and consideration transferred:
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Fair value of assets acquired:
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Cash and cash equivalents
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$
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49,989
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Securities available for sale
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460,892
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Loans held for sale
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11,377
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Loans
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2,238,981
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Bank premises and equipment
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67,164
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OREO
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4,319
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Core deposit intangible
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29,570
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Other assets
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95,229
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Total assets
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$
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2,957,521
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Fair value of liabilities assumed:
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Deposits
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$
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2,479,874
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Short-term borrowings
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49,227
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Long-term borrowings
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98,697
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Other liabilities
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14,322
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Total liabilities
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$
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2,642,120
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Net identifiable assets acquired
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$
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315,401
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Goodwill (1)
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234,122
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Net assets acquired
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$
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549,523
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Consideration :
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Company's common shares issued
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22,147,874
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Purchase price per share of the Company's common stock (2)
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$
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24.81
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Value of Company common stock issued
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$
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549,489
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Value of stock options outstanding
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34
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Fair value of total consideration transferred
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$
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549,523
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(1) - No goodwill is expected to be deductible for federal income tax purposes. The goodwill was primarily allocated to the community bank segment.
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(2) - The value of the shares of common stock exchanged with StellarOne shareholders was based upon the closing price of the Company's common stock at December 31, 2013, the last trading day prior to the date of acquisition.
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| Outstanding Principal Balance and Carrying Amount of Acquired Impaired Loans |
The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands):
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Contractually required principal and interest payments
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$
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214,803
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Nonaccretable difference
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(34,696)
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Cash flows expected to be collected
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180,107
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Accretable difference
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(34,653)
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Fair value of loans acquired with a deterioration of credit quality
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$
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145,454
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| Business Acquisition, Pro Forma Information |
Further operating cost savings and other business synergies, including branch closures, as a result of the acquisition are not reflected in the pro forma amounts below (dollars in thousands):
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2013
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Total revenues (net interest income plus noninterest income)
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$
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321,739
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Net income
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$
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57,343
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| Summary of Acquisition-Related Expenses |
A summary of acquisition-related expenses associated with the StellarOne acquisition included in the Consolidated Statements of Income is as follows (dollars in thousands):
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For the year ended
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December 31,
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2014
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2013
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Salaries and employee benefits
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$
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7,875
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$
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-
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Professional services
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3,736
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2,132
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Other costs of operations
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8,734
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-
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Total
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$
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20,345
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$
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2,132
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| Schedule of Effect of Amortization and Accretion Related to Acquisition |
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 years ended December 31, 2015, 2014, and 2013 (dollars in thousands):
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For the years ended
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December 31,
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2015
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2014
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2013
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Loans (1)
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$
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4,355
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$
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586
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$
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2,728
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Core deposit intangible (2)
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(8,445)
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(9,795)
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(3,831)
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Borrowings (3)
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424
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550
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(489)
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Time deposits (4)
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1,843
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8,914
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7
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Net impact to income before taxes
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$
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(1,823)
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$
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255
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$
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(1,585)
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(1) Loan discount accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income.
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(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.
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(3) Borrowings premium accretion and discount amortization are included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income.
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(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.
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