ACQUISITIONS

Peoples Bankshares, Inc.

On January 1, 2019, Summit Community Bank, Inc., a wholly-owned subsidiary of Summit, acquired 100% of the ownership of Peoples Bankshares, Inc. ("PBI") and its subsidiary First Peoples Bank, Inc., headquartered in Mullens, West Virginia, for consideration of 465,931 shares of Summit common stock and $12.7 million cash. With this transaction, Summit expanded its footprint into Wyoming and Raleigh counties of West Virginia. PBI's assets and liabilities approximated $133 million and $113 million, respectively, at December 31, 2018 and 2018's total revenues, net of interest expense were $3.6 million and 2018 net income totaled $21,000. The acquisition is deemed immaterial to our financial statements.

The former First Peoples offices will continue to operate under that name until close of business on Friday, April 26, 2019, and will commence operating under the name Summit Community Bank on Monday, April 29, 2019.

First Century Bankshares, Inc.

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 statements of income for the years ended December 31, 2018 and 2017 related to business combinations that occurred during 2016 and 2017.



	Income increase (decrease)
Dollars in thousands	December 31, 2018			December 31, 2017
Interest and fees on loans	$	386		$	825
Interest expense on deposits	205			237
Amortization of intangibles	(1,471		)	(1,210		)
Income before income tax expense	$	(880	)	$	(148	)