Merger with MidCarolina (Tables)

12 Months Ended

Dec. 31, 2013

Merger with MidCarolina [Abstract]

Schedule of consideration paid, and the fair value of identifiable assets acquired and liabilities assumed

In connection with the merger, the consideration paid, and the fair value of identifiable assets acquired and liabilities assumed are summarized in the following table.

(dollars in thousands)
Consideration Paid:
Common shares issued (1,626,157)	$	29,905
Cash paid to shareholders		12
Fair value of options		132
Preferred shares issued (5,000)		5,000
Value of consideration		35,049
Assets acquired:
Cash and cash equivalents		34,783
Investment securities		51,442
Loans held for sale		113
Loans, net of unearned income		328,123
Premises and equipment, net		5,708
Deferred income taxes		15,310
Core deposit intangible		6,556
Other real estate owned		3,538
Other assets		13,535
Total assets		459,108
Liabilities assumed:
Deposits		420,248
FHLB advances		9,858
Other borrowings		6,546
Other liabilities		3,982
Total liabilities		440,634
Net assets acquired		18,474
Goodwill resulting from merger with MidCarolina	$	16,575

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill and intangibles for the twelve months ended December 31, 2013, are as follows (in thousands):

	Goodwill		Intangibles
Balance as of December 31, 2012	$	39,043	$	4,660
Additions		-		-
Amortization		-		(1,501	)
Impairment		-		-
Balance at December 31, 2013	$	39,043	$	3,159

Schedule of acquired loans that are accounted for in accordance with FASB ASC 310-30

The following table details the acquired loans that are accounted for in accordance with FASB ASC 310-30 (formerly Statement of Position ("SOP") 03-3) as of July 1, 2011 (in thousands).

Contractually required principal and interest at acquisition	$	56,681
Contractual cash flows not expected to be collected (nonaccretable difference)		17,472
Expected cash flows at acquisition		39,209
Interest component of expected cash flows (accretable discount)		1,663
Fair value of acquired loans accounted for under FASB ASC 310-30	$	37,546

Schedule of unaudited pro forma information related to merger

The following table presents unaudited pro forma information as if the merger with MidCarolina had occurred on January 1, 2010. This pro forma information gives effect to certain adjustments, including purchase accounting fair value adjustments, amortization of core deposit and other intangibles and related income tax effects. The pro forma information does not necessarily reflect the results of operations that would have occurred had the merger with MidCarolina occurred in 2010.  In particular, expected operational cost savings are not reflected in the pro forma amounts.

	Pro forma
	At December 31,
(in thousands)	2013			2012			2011
Net interest income		$	40,959		$	44,954		$	50,781
Provision for loan losses			294			2,133			5,570
Non-interest income			10,827			11,410			10,299
Non-interest expense			34,780			35,991			37,542
Income Taxes			3,861			3,649			5,321
Net income		$	12,851		$	14,591		$	12,647