Business Combinations (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of summarizing the purchase price calculation

The purchase price consisted of stock, and additionally the Company paid approximately $1.48 million in cash for all of Grand’s outstanding shares of preferred B stock, representing the par value of $1,000 per share of preferred B stock. Each share of Grand common stock and Preferred A stock was exchanged for 0.3114 shares of the Company’s common stock, or approximately 1.09 million shares of Company stock. Based on the price of the Company’s common stock of $15.75 per share on July 17, 2015, plus cash paid for Grand’s outstanding shares of preferred B stock, the total purchase price was $18.7 million.

	July 17, 2015
Grand preferred B shares exchanged for cash	$	1,481,000

Number of Grand common shares outstanding		3,501,185
Per share exchange ratio		0.3114
Number of shares of common stock issued		1,090,269
Multiplied by common stock price per share on July 17, 2015	$	15.75
Value of common stock issued		17,171,737

Total purchase price	$	18,652,737

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. As previously disclosed the fair value initially assigned to assets acquired and liabilities assumed are preliminary and can change for up to one year after the closing date of the acquisition as new information and circumstances relative to closing date fair values is known. Determining fair values of assets and liabilities, especially the loan portfolio and foreclosed real estate, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. Based on recoveries of principal and interest on loans previously charged off and OREO appraisals received subsequent to the acquisition date, the Company adjusted its initial fair value estimates at acquisition date as indicated in the table below. These adjustments under ASU Topic 805 resulted in a bargain purchase gain of $416,000 that was recorded in noninterest income in the fourth quarter of 2015.

			Measurement
	July 17, 2015		Period		July 17, 2015
	(Initially Reported)		Adjustments		(As Adjusted)

	(in thousands)
Assets:
Cash	$	34,408	$	0	$	34,408
Investment securities		46,366		0		46,366
Loans, net		109,988		1,304		111,292
Fixed assets		4,191		0		4,191
OREO		2,424		437		2,861
Core deposit intangibles		2,564		0		2,564
Goodwill		555		(555)		0
Other assets		14,163		(770)		13,393
	$	214,659	$	416	$	215,075

Liabilities:
Deposits	$	188,469	$	0	$	188,469
Borrowings		1,658		0		1,658
Subordinated debt		5,151		0		5,151
Other liabilities		728		0		728
	$	196,006	$	0	$	196,006

Bargain purchase gain			$	(416)

Fair Value, Assets Measured on Recurring Basis

The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.

	July 17, 2015
(Dollars in thousands)	Book Balance		Fair Value
Loans:
Single family residential real
estate	$	6,158	$	6,379
Commercial real estate		82,782		81,191
Construction/development/land		979		913
Commercial loans		2,393		1,516
Consumer and other loans		14,575		13,692
Purchased credit-impaired		10,993		7,601
Total acquired loans	$	117,880	$	111,292

Schedule of Contractually required principal and interest payments

Contractually required principal and interest payments have been adjusted for estimated prepayments.

(Dollars in thousands)	July 17, 2015

Contractually required principal and interest	$	12,552
Non-accretable difference		(4,249)
Cash flows expected to be collected		8,303
Accretable yield		(702)
Total purchased credit-impaired loan acquired	$	7,601

Business Acquisition, Pro Forma Information

The operating results of the Company for the twelve months ended December 31, 2015 includes the operating results of the acquired assets and assumed liabilities since the date of acquisition of July 17, 2015. Pro-forma data for the twelve months ending December 31, 2015 and 2014 listed in the table below presents pro-forma information as if the acquisition occurred at the beginning of 2014.

	Twelve Months Ended
	December 31,
(Dollars in thousands, except per share amounts)	2015		2014

Net interest income	$	113,082	$	82,124
Net income available to common shareholders		25,408		8,399
EPS - basic	$	0.75	$	0.29
EPS - diluted		0.74		0.29