Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS & DISPOSITIONS (Tables)

v3.10.0.1
ACQUISITIONS & DISPOSITIONS (Tables)
 12 Months Ended
Dec. 31, 2018
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table provides an assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands):

Purchase Price:
 
 
Fair value of shares of the Company's common stock issued & warrants converted
 
$
794,809

Cash paid for Xenith stock options
 
6,170

Total purchase price
 
$
800,979

 
 
 
Fair value of assets acquired:
 
 
Cash and cash equivalents
$
174,218

 
AFS securities
295,782

 
Restricted stock, at cost
27,569

 
Net loans
2,453,856

 
Premises and equipment
46,077

 
OREO
5,250

 
Core deposit intangibles
38,470

 
Other assets
202,984

 
Total assets
$
3,244,206

 
 
 
 
Fair value of liabilities assumed:
 
 
Deposits
$
2,549,683

 
Short-term borrowings
235,000

 
Long-term borrowings
55,542

 
Other liabilities
26,842

 
Total liabilities
$
2,867,067

 
 
 
 
Net assets acquired
 
$
377,139

Preliminary goodwill
 
$
423,840

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):

Contractually required principal and interest payments
$
114,270

Nonaccretable difference
(19,800
)
Cash flows expected to be collected
94,470

Accretable difference
(15,206
)
Fair value of loans acquired with a deterioration of credit quality
$
79,264

Business Acquisition, Pro Forma Information
The Company expects to achieve further operating cost savings and other business synergies, including branch closures, as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands):
 
For the years ended
December 31,
 
2018
 
2017
 
2016
Total revenues
$
530,932

 
$
470,484

 
$
425,794

Net income
$
176,473

 
$
45,036

 
$
138,960

Earnings per share
$
2.68

 
$
0.68

 
$
2.23

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, 2018, 2017, and 2016 (dollars in thousands):
 
For the years ended
December 31,
 
2018
 
2017
 
2016
Loans (1)
$
17,145

 
$
6,784

 
$
5,218

Buildings (2)
228

 
—

 
—

Core deposit intangible (3)
(11,464
)
 
(5,603
)
 
(6,930
)
Other amortizable intangibles (3)
(1,375
)
 
(485
)
 
(280
)
Borrowings (4)
(506
)
 
170

 
458

Time deposits (5)
2,553

 
—

 
—

Leases (2)
130

 
—

 
—

Net impact to income before taxes
$
6,711

 
$
866

 
$
(1,534
)
(1) Loan acquisition-related fair value adjustments accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income.
(2) Building and lease acquisition-related fair value adjustments amortization is included in "Occupancy expenses" in the "Noninterest expense" section of the Company's Consolidated Statements of Income.
(3) Core deposit and other intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company's Consolidated Statements of Income.
(4) Borrowings acquisition-related fair value adjustments (amortization) accretion is included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income.
(5) Certificate of deposit acquisition-related fair value adjustments accretion is included in "Interest on deposits" in the "Interest expense" section of the Company's Consolidated Statements of Income.