2.4.0.80012 - Disclosure - Mergers and Acquisitionstruefalsefalse1false falsefalseFrom2013-01-01to2013-06-30http://www.sec.gov/CIK0001005817duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_BusinessCombinationsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Business Combinations [Abstract]2false 2us-gaap_BusinessCombinationDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">4. Mergers and Acquisitions</font></div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">On August 1, 2012, Tompkins completed its acquisition of VIST Financial Corp. (“VIST Financial”), a financial holding company headquartered in Wyomissing, Pennsylvania, and parent to VIST Bank, VIST Insurance, LLC (“VIST Insurance”), and VIST Capital Management, LLC (“VIST Capital Management”).   On the acquisition date, VIST Financial had $1.4 billion in total assets, which included $889.3 million in loans, and $1.2 billion in deposits.   On the acquisition date, VIST Financial was merged into Tompkins.  VIST Bank, a Pennsylvania state-chartered commercial bank, became a wholly-owned subsidiary of Tompkins and will continue to operate as a separate subsidiary bank of Tompkins.  VIST Insurance was merged into Tompkins Insurance Agencies, Inc., and VIST Capital Management became part of VIST Bank.  The acquisition expands the Company’s presence into the southeastern region of Pennsylvania.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The acquisition was a stock transaction.  Under the terms of the merger agreement, each share of VIST Financial common stock was cancelled and converted into the right to receive 0.3127 shares of Tompkins common stock, with any fractional share entitlement paid in cash, resulting in the Company issuing 2,093,689 shares at a fair value of $82.2 million.  The Company also paid $1.2 million to retire outstanding VIST Financial employee stock options; while other VIST Financial employee stock options were converted into options to purchase Tompkins’ common stock, with an aggregate fair value of $1.1 million.  In addition, immediately prior to the completion of the merger, Tompkins purchased from the United States Department of the Treasury the issued and outstanding shares of VIST Financial Fixed Rate Cumulative Perpetual Preferred Stock, Series A, as well as the warrant to purchase shares of VIST Financial common stock issued in connection with the issuance of the preferred stock (the “TARP Purchase”) and any accrued and unpaid dividends for an aggregate purchase price of $26.5 million. The securities purchased in the TARP Purchase were cancelled in connection with the consummation of the merger.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The acquisition was accounted for under the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values as of acquisition date.   VIST Financial’s assets and liabilities were recorded at their preliminary estimated fair values as of August 1, 2012, the acquisition date, and VIST Financial’s results of operations have been included in the Company’s Consolidated Statements of Income since that date.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based upon management’s best estimates using information available at the date of the acquisition, including the use of third party valuation specialist.  The fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the acquisition.  The following table summarizes the estimated fair value of the acquired assets and liabilities.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-align: left"> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman"> <tr> <td style="text-align: left; vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman"><font style="display: inline; font: bold 10pt times new roman">Consideration Paid (in thousands)</font></font></font></div> </td> <td style="text-align: right; vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"><font style="display: inline; font: bold 10pt times new roman"> </font></td> <td colspan="2" style="text-align: right; vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: bold 10pt times new roman">August 1, 2012</font></div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left"><font style="display: inline; font: bold 10pt times new roman"> </font></td> </tr><tr> <td style="text-align: left; vertical-align: bottom"> </td> <td style="text-align: right; vertical-align: bottom"> </td> <td colspan="2" style="text-align: right; vertical-align: bottom"> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left"> </td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Tompkins common stock issued</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">82,198</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Cash payment for fractional shares</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">13</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 446pt"> <div style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Cash payments for VIST Financial employee stock options</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,236</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Fair value of VIST Financial employee stock options, converted to Tompkins' common stock options</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,107</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; border-bottom: black 2px solid; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: -9pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Cash payment for VIST Financial TARP, warrants and accrued and unpaid dividends</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">26,454</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 22%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">111,008</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%"> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left"> </td> <td style="vertical-align: bottom; width: 22%; text-align: right"> </td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"> </td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%"> <div style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman"><font style="display: inline; font: bold 10pt times new roman">Recognized amounts of identifiable assets acquired and liabilities assumed at estimated fair value</font></font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left"> </td> <td style="vertical-align: bottom; width: 22%; text-align: right"> </td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"> </td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Cash and cash equivalents</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">32,985</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Available-for-sale securities</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">376,298</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">FHLB stock</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">4,751</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Loans and leases</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">889,336</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Premises and equipment</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">7,343</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Identifiable intangible assets</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">16,017</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Accrued interest receivable and other assets</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">68,045</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Deposits</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">(1,185,235</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Borrowings</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">(138,263</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; padding-left: 0pt; margin-left: 9pt"> <div style="text-indent: 0pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Other liabilities</font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 22%; text-align: right"><font style="display: inline; font: 10pt times new roman">(7,698</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%"> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"> </td> <td style="vertical-align: bottom; width: 1%; text-align: left"> </td> <td style="vertical-align: bottom; width: 22%; text-align: right"> </td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"> </td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 73%; border-bottom: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Total identifiable assets</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 22%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">63,579</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 73%; border-bottom: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Goodwill</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 22%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">47,429</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr></table> </div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">Loans and leases acquired in the VIST Financial acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310, and there was no carryover of related allowance for loan and lease losses.  The fair values of loans acquired from VIST Financial were estimated using cash flow projections based on the remaining maturity and repricing terms.  Cash flows were adjusted for estimated future credit losses and the rate of prepayments.  Projected cash flows were then discounted to present value using a risk-adjusted market rate for similar loans.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt Times New Roman">The following is a summary of the loans acquired in the VIST Financial acquisition as of the closing date.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-align: left"> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman"> <tr> <td style="text-align: left; vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"><font style="display: inline; font: 10pt times new roman">  </font></td> <td style="vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"><font style="display: inline; font: bold 10pt times new roman"> </font></td> <td colspan="2" style="vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">Acquired Credit Impaired Loans</font></div> </td> <td nowrap="nowrap" style="vertical-align: bottom; border-bottom: black 2px solid; text-align: left; border-top: black 2px solid"><font style="display: inline; font: bold 10pt times new roman"> </font></td> <td style="vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"><font style="display: inline; font: bold 10pt times new roman"> </font></td> <td colspan="2" style="vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">Acquired Non-Credit Impaired Loans</font></div> </td> <td nowrap="nowrap" style="vertical-align: bottom; border-bottom: black 2px solid; text-align: left; border-top: black 2px solid"><font style="display: inline; font: bold 10pt times new roman"> </font></td> <td style="vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"><font style="display: inline; font: bold 10pt times new roman"> </font></td> <td colspan="2" style="vertical-align: bottom; border-bottom: black 2px solid; border-top: black 2px solid"> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: bold 10pt times new roman">Total Acquired Loans</font></div> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left"><font style="display: inline; font: bold 10pt times new roman"> </font></td> </tr><tr> <td style="text-align: left; vertical-align: bottom"> </td> <td style="text-align: left; vertical-align: bottom"> </td> <td colspan="2" style="text-align: left; vertical-align: bottom"> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left"> </td> <td style="text-align: left; vertical-align: bottom"> </td> <td colspan="2" style="text-align: left; vertical-align: bottom"> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left"> </td> <td style="text-align: right; vertical-align: bottom"> </td> <td colspan="2" style="text-align: right; vertical-align: bottom"> </td> <td nowrap="nowrap" style="vertical-align: bottom; text-align: left"> </td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 46%"> <div style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Contractually required principal and interest at acquisition</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 13%; text-align: right"><font style="display: inline; font: 10pt times new roman">159,325</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 13%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,058,708</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td> <td style="vertical-align: bottom; width: 13%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,218,033</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 46%; border-bottom: black 2px solid"> <div style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Contractual cash flows not expected to be collected (non-accretable difference)</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">57,545</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">0</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">57,545</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 46%"> <div style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Expected cash flows at acquisition</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; text-align: right"><font style="display: inline; font: 10pt times new roman">101,783</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,058,708</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,160,488</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: white"> <td style="text-align: left; vertical-align: bottom; width: 46%; border-bottom: black 2px solid"> <div style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Interest component of expected cash flows (accretable difference)</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">10,008</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">261,144</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">271,152</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr><tr style="background-color: #cceeff"> <td style="text-align: left; vertical-align: bottom; width: 46%; border-bottom: black 2px solid"> <div style="text-indent: -9pt; display: block; margin-left: 9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"><font style="font: 10pt times new roman">Fair value of acquired loans</font></font></div> </td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">91,772</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">797,564</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="text-align: right; vertical-align: bottom; width: 3%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> <td style="vertical-align: bottom; width: 13%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">889,336</font></td> <td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td> </tr></table> </div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The core deposit intangible and customer related intangibles totaled $10.7 million and $5.3 million, respectively and are being amortized over their estimated useful lives of approximately 10 years and 15 years, respectively, using an accelerated method.  The goodwill is not being amortized but will be evaluated at least annually for impairment. The goodwill, core deposit intangibles, and customer related intangibles are not deductible for taxes.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The fair values of deposit liabilities with no stated maturities such as checking, money market, and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand.   The fair values of certificates of deposits and IRAs represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The fair value of borrowings, which were mainly repurchase agreements with a large money center bank, was determined by discounted cash flow, as well as obtaining quotes from the money center bank.  The Company also assumed trust preferred debentures.  The fair value of these instruments was estimated by using the income approach whereby the expected cash flows over remaining estimated life are discounted using the Company’s credit spread over the current fully indexed yield based on an expectation of future interest rates derived from observed market interest rate curve and volatilities.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">Direct costs related to the acquisition were expensed as incurred.  During the twelve months ended December 31, 2012, the Company incurred $15.6 million of merger and acquisition integration-related expenses, which have been separately stated in the Company’s Consolidated Statements of Income.  For the six months ended June 30, 2013, the Company incurred $233,000 of merger and acquisition integration-related expenses.</font></div> <div style="text-indent: 0pt; display: block"> </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. 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