Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of business acquisitions, by acquisition

The following table provides a preliminary assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands):



Consideration Paid:
Common shares issued (2,361,686)	$	82,470
Issuance of replacement stock options/restricted stock	753
Cash paid in lieu of fractional shares	27
Value of consideration	83,250

Assets acquired:
Cash and cash equivalents	26,283
Investment securities	34,876
Restricted stock	2,588
Loans	444,324
Premises and equipment	12,554
Deferred income taxes	2,329
Core deposit intangible	8,200
Other real estate owned	1,442
Banked owned life insurance	8,246
Other assets	14,244
Total assets	555,086

Liabilities assumed:
Deposits	483,626
Short-term FHLB advances	14,883
Long-term FHLB advances	778
Subordinated debt	7,530
Other liabilities	5,780
Total liabilities	512,597
Net assets acquired	42,489
Goodwill resulting from merger with HomeTown	$	40,761

Schedule of recognized identified assets acquired and liabilities assumed

The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands):



Contractually required principal and interest at acquisition	$	45,551
Contractual cash flows not expected to be collected (nonaccretable difference)	8,296
Expected cash flows at acquisition	37,255
Interest component of expected cash flows (accretable yield)	4,410
Fair value of acquired loans accounted for under FASB ASC 310-30	$	32,845

Business acquisition, pro forma information

The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands, except per share data):



	Pro forma Three Months Ended
	September 30, 2019		September 30, 2018
Total revenues ⁽¹⁾	$	24,636	$	24,478
Net income	8,608		7,458
Earnings per share	0.77		0.67

(1) Includes net interest income and noninterest income.



	Pro forma Nine Months Ended
	September 30, 2019		September 30, 2018
Total revenues ⁽¹⁾	$	70,404	$	73,897
Net income	21,996		22,213
Earnings per share	1.98		2.01

(1) Includes net interest income and noninterest income.