Business Combination (Tables)

9 Months Ended

Sep. 30, 2013

Summary of the fair value of the assets acquired and liabilities assumed

The fair value of the assets acquired and liabilities assumed in the NCB and Valley Acquisitions were as follows:



	Valley July 15, 2013			NCB January 9, 2013
	(In thousands)
Assets
Cash and cash equivalents	$	40,643		$	2,712
Other interest earning deposits	13,866			1,003
Investment securities available for sale	31,444			2,753
Investment securities held to maturity	22,908			—
Purchased non-covered loans receivable	117,071			51,509
Other real estate owned	—			2,279
Premises and equipment	6,558			214
FHLB stock	366			88
Accrued interest receivable	465			232
Core deposit intangible	916			156
Prepaid expenses and other assets	3,172			1,175
Deferred income taxes, net	(85		)	2,873
Total assets acquired	$	237,324		$	64,994
Liabilities
Deposits	$	207,013		$	60,442
Accrued expenses and other liabilities	342			1,186
Total liabilities assumed	207,355			61,628
Net assets acquired	$	29,969		$	3,366

Summary of the net assets purchased and the estimated fair value adjustments

Summaries of the net assets purchased and the estimated fair value adjustments and resulting bargain purchase gain or goodwill recognized from the NCB and Valley Acquisitions were as follows:



	Valley July 15, 2013			NCB January 9, 2013
	(In thousands)
Cost basis of net assets on acquisition date	$	29,720		$	6,113
Consideration transferred	(46,323		)	(2,967		)
Fair value adjustments:
Other interest earning deposits	162			7
Investment securities	—			(2		)
Purchased non-covered loans, net	(3,003		)	(3,299		)
Other real estate owned	—			(1,301		)
Premises and equipment	1,837			(69		)
Core deposit intangible	916			156
Prepaid expenses and other assets	323			(479		)
Deferred income tax, net	(125		)	2,873
Certificates of deposit	(9		)	(11		)
Accrued expenses and other liabilities	149			(622		)
(Goodwill) bargain purchase gain recognized from the acquisition	$	(16,353	)	$	399

Net interest income and noninterest income for the acquired business

The table below presents only the significant results for the acquired businesses from the acquisition dates.



	NCB						Valley			Total
	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013 (3)			Three and Nine Months Ended September 30, 2013 (3)			Three Months Ended September 30, 2013 (3)			Nine Months Ended September 30, 2013 (3)
	(In thousands)
Interest income: Interest and fees on loans (1)	$	608		$	1,768		$	1,290		$	1,898		$	3,058
Interest income: Interest and fees on loans (2)	250			1,712			399			649			2,111
Interest income: Securities and other interest earning assets	29			87			150			179			237
Interest expense: Deposits	(62		)	(219		)	(66		)	(128		)	(285		)
Provision for loan losses on purchased loans	(808		)	(1,058		)	—			(808		)	(1,058		)
Noninterest income	14			486			267			281			753
Noninterest expense	(117		)	(1,341		)	(829		)	(946		)	(2,170		)
Net effect, pre-tax	$	(86	)	$	1,435		$	1,211		$	1,125		$	2,646


(1)	Includes the contractual interest income on the purchased other loans.


(2)	Includes the accretion of the accretable yield on the purchased impaired loans and the accretion of the discount on the purchased other loans.