Business Combinations (Tables)

12 Months Ended

Dec. 31, 2019

The following table summarizes the merger related expenses for the years ended December 31, 2019, 2018 and 2017 is as follows:



	For the Year Ended December 31,
	2019		2018		2017
	(in thousands)
Data processing fees	$	2,514	$	6,017	$	3,956
Professional fees	4,239		4,414		2,771
Employee severance payments	2,942		15,660		1,177
Other/miscellaneous fees	808		820		389
Merger related expenses	$	10,503	$	26,911	$	8,293

Schedule of Estimated Fair Value of the Assets Acquired and the Liabilities Assumed as Date of Acquisition

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the

acquisition for Sun, net of the total consideration paid (in thousands):



	At January 31, 2018
	Fair Value
Total Purchase Price:	$	474,930
Assets acquired:
Cash and cash equivalents	$	68,632
Securities	254,522
Loans	1,517,345
Accrued interest receivable	5,621
Bank Owned Life Insurance	85,238
Deferred tax asset	57,597
Other assets	43,202
Core deposit intangible	11,897
Total assets acquired	2,044,054
Liabilities assumed:
Deposits	(1,616,073		)
Borrowings	(127,727		)
Other liabilities	(13,242		)
Total liabilities assumed	(1,757,042		)
Net assets acquired	$	287,012
Goodwill recorded in the merger	$	187,918

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands):



	At January 31, 2019
	Estimated Fair Value
Total Purchase Price:	$	76,834
Assets acquired:
Cash and cash equivalents	$	59,748
Securities	103,775
Loans	307,778
Accrued interest receivable	1,390
Bank Owned Life Insurance	10,460
Deferred tax asset	3,967
Other assets	4,980
Core deposit intangible	2,662
Total assets acquired	494,760
Liabilities assumed:
Deposits	(449,018		)
Other liabilities	(5,121		)
Total liabilities assumed	(454,139		)
Net assets acquired	$	40,621
Goodwill recorded in the merger	$	36,213

Business Acquisition, Pro Forma Information



	Capital Bank Actual from January 31, 2019 to December 31, 2019		Sun Actual from January 31, 2018 to December 31, 2018		Pro forma Year ended December 31, 2019		Pro forma Year ended December 31, 2018		Pro forma Year ended December 31, 2017
(in thousands, except per share amounts)	(Unaudited)
Net interest income	$	17,090	$	63,889	$	257,703	$	266,014	$	260,520
Provision for loan losses	385		1,215		1,636		3,070		3,239
Non-interest income	1,456		7,961		42,277		37,554		40,914
Non-interest expense	12,482		35,184		190,934		214,713		201,605
Provision for income taxes	1,193		7,090		18,798		15,100		26,111
Net income	$	4,486	$	28,361	$	88,612	$	70,685	$	70,479
Fully diluted earnings per share					$	1.74	$	1.36	$	1.37

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense for the core deposit intangible over the next five years is as follows (in thousands):



For the Year Ended December 31,	Amortization Expense
2020	$	3,596
2021	3,121
2022	2,646
2023	2,171
2024	1,695
Thereafter	2,378
Total	$	15,607