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Acquisitions Acquisitions
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
ACQUISITIONS

FCB Acquisition

On April 1, 2017, Summit Community Bank, Inc. ("SCB"), a wholly-owned subsidiary of Summit, acquired 100% of the ownership of First Century Bankshares, Inc. ("FCB") and its subsidiary First Century Bank, headquartered in Bluefield, West Virginia. FCB's assets and liabilities approximated $406 million and $361 million, respectively, at March 31, 2017.

The following presents the financial effects of adjustments recognized in the statement of income for the three months and nine months ended September 30, 2018 and 2017 related to business combinations that occurred during 2016 and 2017.

 
Income increase (decrease)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Dollars in thousands
2018
 
2017
 
2018
 
2017
Interest and fees on loans
$
38

 
$
224

 
$
239

 
$
712

Interest expense on deposits
48

 
76

 
162

 
167

Amortization of intangibles
(363
)
 
(398
)
 
(1,111
)
 
(825
)
Income before income tax expense
$
(277
)
 
$
(98
)
 
$
(710
)
 
$
54



Pending Peoples Acquisition

On July 24, 2018, we entered into a Definitive Merger Agreement with Peoples Bankshares, Inc. ("Peoples"). Pursuant to the terms of the merger agreement, Summit will acquire all of the outstanding shares of common stock of Peoples in exchange for cash in the amount of $47.00 per share or 1.7193 shares of Summit common stock. Peoples shareholders will have a right to receive cash, Summit’s common stock or a combination of cash and Summit common stock, subject to proration to result in approximately 50% cash and 50% stock consideration in the aggregate. Total merger consideration received by Peoples shareholders is subject to an adjustment if Peoples’ adjusted shareholders’ equity as of the effective date of the merger deviates from the range mutually determined by the parties. Peoples' assets approximated $134 million at September 30, 2018.
We anticipate the acquisition will close in the first quarter of 2019, subject to customary closing conditions, including regulatory approval and approval of Peoples' shareholders. Following the consummation of the merger, Peoples' wholly-owned subsidiary First Peoples Bank, Inc. will be consolidated with Summit's subsidiary, Summit Community Bank, Inc.