Acquisitions (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed



	As Recorded			Fair Value				As Recorded
As of July 31, 2014	by MWFC			Adjustments				by the Company

Assets acquired:
Cash and cash equivalents	$	74,035		$	—			$	74,035
Investment securities	104,945			(34		)	(1)	104,911
Loans	378,558			(18,286		)	(2)	360,272
Allowance for loan losses	(11,598		)	11,598			(3)	—
Premises and equipment	35,283			(5,847		)	(4)	29,436
Company-owned life insurance	13,046			—				13,046
Deferred tax asset, net	6,491			1,135			(5)	7,626
Core deposit intangible	—			11,014			(6)	11,014
Other assets	16,559			(5,300		)	(7)	11,259
Total assets acquired	617,319			(5,720		)		611,599

Liabilities assumed:
Deposits	515,538			(159		)	(8)	515,379
Other liabilities	20,501			2,730			(9)	23,231
Subordinated debentures held by subsidiary trusts	20,439			—			(10)	20,439
Total liabilities assumed	556,478			2,571				559,049

Net assets acquired	$	60,841		$	(8,291	)		52,550

Consideration paid:
Cash								38,479
Class A common stock								35,972
Total consideration								74,451

Goodwill								$	21,901



Explanation of fair value adjustments:
(1)	Write down of the book value of investment securities to their estimated fair values on the date of acquisition based upon quotes obtained from an independent third party pricing service.
(2)	Write down of the book value of loans to their estimated fair values. Except for collateral dependent loans acquired with deteriorated credit quality, the fair value of loans was estimated using cash flow projections based on the remaining maturity and repricing terms, adjusted for estimated future credit losses and prepayments and discounted to present value using a risk-adjusted market rate for similar loans. The fair value of collateral dependent loans acquired with deteriorated credit quality was estimated based on the Company's analysis of the fair value of the each loan's underlying collateral, discounted using market-derived rates of return with consideration given to the period of time and costs associated with foreclosure and disposition of the collateral.
(3)	Adjustment to remove the MWB allowance for loan losses at acquisition date as the credit risk is accounted for in the fair value adjustment for loans receivable described in (2) above.
(4)	Write down of the book value of premises and equipment to their estimated fair values based upon appraisals obtained from an independent third party appraiser.
(5)	Adjustment represents the net deferred tax assets resulting from fair value adjustments related to acquired assets, assumed liabilities, core deposit intangible assets and other purchase accounting adjustments.
(6)	Adjustment represents the value of the core deposit base assumed in the acquisition based upon a valuation obtained from an independent third party valuation expert.
(7)	Adjustment consists of a reduction in the value of equity method investments, accrued interest receivable and accrued net income taxes receivable, and the write-off of pre-existing goodwill and computer software costs.
(8)	Decrease in book value of time deposits to their estimated fair values based upon interest rates of similar time deposits with similar terms on the date of acquisition.
(9)	Adjustment represents increases in the book values of other liabilities to their estimated fair values at the acquisition date. The adjustment primarily consists of a $2,000 increase to an acquired operating lease obligation and a $473 increase to Federal Home Loan Bank borrowings based upon interest interest rates of similar obligations with similar characteristics on the date of acquisition.
(10)	Recorded value of junior subordinated debentures held by subsidiary trusts approximated fair value as of the acquisition date due to the short-term nature of the instruments. These debentures were redeemed at par value in December 2014.

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period



Contractually required principal and interest payments	$	112,882
Contractual cash flows not expected to be collected ("non-accretable discount")	74,760
Cash flows expected to be collected	38,122
Interest component of cash flows expected to be collected ("accretable discount")	5,233
Fair value of acquired credit-impaired loans	$	32,889

Information regarding acquired loans not deemed credit-impaired at the acquisition date is as follows:



Contractually required principal and interest payments	$	445,345
Contractual cash flows not expected to be collected	(15,090		)
Fair value at acquisition	327,383

Business Acquisition, Pro Forma Information



Year ended December 31, (unaudited)	2014		2013
Interest income	$	280,102	$	280,455
Non-interest income	114,984		120,005
Total revenues	$	395,086	$	400,460

Net income	$	87,129	$	84,264