Acquisitions (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Consideration Paid, Assets Acquired and Liabilities Assumed in Acquisition of HCB

The following table details the total consideration paid on October 1, 2016 in connection with the acquisition of HCB, the fair values of the assets acquired and liabilities assumed and the resulting preliminary goodwill.

(Dollars in thousands)	As Recorded by HCB			Estimated Fair Value Adjustments			Estimated Fair Values as Recorded by Summit
Cash consideration paid							$	21,826
Identifiable assets acquired:
Cash and cash equivalents	$	53,235		$	—		$	53,235
Securities available for sale, at fair value	5,932			—			5,932
Loans
Purchased performing	58,931			(467		)	58,464
Purchased credit impaired	2,910			(528		)	2,382
Allowance for loan losses	(1,040		)	1,040			—
Premises and equipment	1,925			(307		)	1,618
Property held for sale	41			(18		)	23
Core deposit intangibles	—			1,610			1,610
Other assets	906			(41		)	865
Total identifiable assets acquired	$	122,840		$	1,289		$	124,129
Identifiable liabilities assumed:
Deposits	106,907			(145		)	106,762
Other liabilities	332			—			332
Total identifiable liabilities assumed	$	107,239		$	(145	)	$	107,094
Net identifiable assets acquired	$	15,601		$	1,434		$	17,035
Preliminary goodwill resulting from acquisition							$	4,791

Summary of PCI Loan Portfolio

The PCI loan portfolio related to the HCB acquisition was accounted for at estimated fair value on the date of acquisition, October 1, 2016, as follows:

Dollars in thousands	Acquired Loans -PCI
Contractual principal and interest due	$	3,301
Nonaccretable difference	(586		)
Expected cash flows	2,715
Accretable yield	(333		)
Purchase credit impaired loans - estimated fair value	$	2,382

Pro Forma Information of the Combined Entities Summit and HCB

The following table illustrates the pro forma revenue, net income and diluted earnings per share of the combined entities of Summit, HCB and FCB had the acquisitions taken place on January 1, 2014. The pro forma revenue, net income and diluted earnings per share combines the historical results of HCB and FCB with Summit's consolidated statements of income for the periods below and, while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2014. Acquisition related expenses of $933,000 were included in our actual consolidated statement of net income for the year ended December 31, 2016, but were excluded from the pro forma information listed below. HCB and FCB incurred acquisition related expenses of $405,000 and $400,000, respectively, in 2016 which were also excluded. In addition and also excluded, was a 2016 charge of $5.46 million by FCB relative to the termination of its defined benefit plan, which was required in conjunction with the merger. We expect to achieve operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below.

	Summit, HCB & FCB Pro Forma
	For the Year Ended December 31,
Dollars in thousands	2016		2015		2014
Total revenues, net of interest expense	$	83,239	$	82,191	$	77,894
Net income	$	21,259	$	19,874	$	15,133
Diluted earnings per share	$	1.73	$	1.62	$	1.41

The following table estimates the pro forma revenue, net income and diluted earnings per share of the combined entities of Summit and HCB as if the acquisition taken place on January 1, 2014. The pro forma revenue, net income and diluted earnings per share combines the historical results of HCB with Summit's consolidated statements of income for the periods below and, while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2014. Acquisition related expenses of $933,000 were included in our actual consolidated statement of income for the year ended December 31, 2016, but were excluded from the pro forma information listed below. Additionally, HCB incurred acquisition related expenses of $405,000 in 2016 which were also excluded. We expect to achieve operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below.

	Summit & HCB Pro Forma
	For the Year Ended December 31,
Dollars in thousands	2016		2015		2014
Total revenues, net of interest expense	$	64,149	$	62,684	$	58,400
Net income	$	18,042	$	16,861	$	11,271
Diluted earnings per share	$	1.68	$	1.57	$	1.24

Pro Forma Information of the Combined Entities Summit, HCB, and FCB

The following table illustrates the pro forma revenue, net income and diluted earnings per share of the combined entities of Summit, HCB and FCB had the acquisitions taken place on January 1, 2014. The pro forma revenue, net income and diluted earnings per share combines the historical results of HCB and FCB with Summit's consolidated statements of income for the periods below and, while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2014. Acquisition related expenses of $933,000 were included in our actual consolidated statement of net income for the year ended December 31, 2016, but were excluded from the pro forma information listed below. HCB and FCB incurred acquisition related expenses of $405,000 and $400,000, respectively, in 2016 which were also excluded. In addition and also excluded, was a 2016 charge of $5.46 million by FCB relative to the termination of its defined benefit plan, which was required in conjunction with the merger. We expect to achieve operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below.

	Summit, HCB & FCB Pro Forma
	For the Year Ended December 31,
Dollars in thousands	2016		2015		2014
Total revenues, net of interest expense	$	83,239	$	82,191	$	77,894
Net income	$	21,259	$	19,874	$	15,133
Diluted earnings per share	$	1.73	$	1.62	$	1.41

The following table estimates the pro forma revenue, net income and diluted earnings per share of the combined entities of Summit and HCB as if the acquisition taken place on January 1, 2014. The pro forma revenue, net income and diluted earnings per share combines the historical results of HCB with Summit's consolidated statements of income for the periods below and, while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2014. Acquisition related expenses of $933,000 were included in our actual consolidated statement of income for the year ended December 31, 2016, but were excluded from the pro forma information listed below. Additionally, HCB incurred acquisition related expenses of $405,000 in 2016 which were also excluded. We expect to achieve operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below.

	Summit & HCB Pro Forma
	For the Year Ended December 31,
Dollars in thousands	2016		2015		2014
Total revenues, net of interest expense	$	64,149	$	62,684	$	58,400
Net income	$	18,042	$	16,861	$	11,271
Diluted earnings per share	$	1.68	$	1.57	$	1.24