Mergers and Acquisitions (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair value of assets acquired and liabilities assumed at acquisition date in connection with the merger with First M&F. The Company is finalizing the fair value of certain fixed assets and liabilities associated with First M&F mortgage operations. As a result, the values included in the following table are preliminary and may change.



Cash and cash equivalents		170,005
Securities		227,693
Mortgage loans held for sale		1,659
Loans, net of unearned income		899,246
Premises and equipment		32,259
Other real estate owned		13,527
Intangible assets		116,366
Other assets		55,848
Total assets		1,516,603

Deposits		1,325,872
Borrowings		25,346
Other liabilities		9,861

Schedule of Business Acquisitions, Fair Value of Assets Acquired and Liabilities Assumed



Allocation of Purchase Price for First M&F Corporation.
Purchase Price:
Shares issued to common shareholders	6,175,576
Purchase price per share	$	25.17
Value of stock paid				$	155,439
Cash paid for fractional shares				17
Fair value of stock based compensation assumed				68
Deal charges				1,310
Total purchase price				$	156,834
Net assets acquired:
Stockholders’ equity at 9/1/13	$	79,440
Increase (decrease) to net assets as a result of fair value adjustments to assets acquired and liabilities assumed:
Securities	253
Loans, net of First M&F's allowance for loan losses⁽¹⁾	(45,751		)
Fixed assets	(3,070		)
Core deposits intangible, net of First M&F’s existing core deposit intangible	21,158
Other real estate owned⁽¹⁾	(5,797		)
Other assets	(443		)
Deposits	(3,207		)
Junior Subordinated Debt	12,371
Other liabilities	1,748
Deferred income taxes	8,799
Total net assets acquired				65,501
Goodwill resulting from merger⁽²⁾				$	91,333

(1) The fair value adjustments to acquired loans and other real estate owned reflect management’s expectations to more aggressively market and liquidate problem assets quickly.

(2) The goodwill resulting from the merger has been assigned to the Community Banks operating segment.

Pro Forma Information

The pro forma information does not include the effect of any cost-saving or revenue-enhancing strategies. Merger expenses are reflected in the period in which they were incurred.

On August 30, 2013, First M&F redeemed from the U.S. Department of the Treasury (“Treasury”) all of the outstanding shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Class B Non-Voting, Series CD, originally issued to Treasury in connection with First M&F’s participation in Treasury’s Community Development Capital Initiative, for approximately $30 million. In addition, on August 30, 2013, First M&F redeemed from Treasury the warrant to purchase 513,113 shares of First M&F common stock originally issued to Treasury in connection with First M&F’s participation in Treasury’s Capital Purchase Program, for approximately $4.1 million.



	Years Ended December 31,
	2013		2012
Interest income	$	222,165	$	228,267
Interest expense	28,552		36,470
Net interest income	193,613		191,797
Provision for loan losses	13,030		26,645
Noninterest income	81,174		91,509
Noninterest expense	214,502		211,475
Income before income taxes	47,255		45,186
Income taxes	12,546		10,135
Net income	$	34,709	$	35,051
Earnings per share:
Basic	$	1.11	$	1.12
Diluted	$	1.10	$	1.12