The table below summarizes the estimates of fair value of the assets purchased, including goodwill, and the liabilities assumed as of August 29, 2014.

 

		As of
		August 29, 2014
Assets:
Cash and cash equivalents		$	2,233
Factored receivables			81,559
Premises and equipment, net			444
Other assets			157
Goodwill			23,115
Total assets			107,508
Liabilities:
Other liabilities			6,592
Note payable			77,801
Total liabilities			84,393
Non controlling interest			6,934
Purchase price		$	16,181

Loans at the acquisition date are presented in the following table.

 

		Acquired Impaired Loans				Acquired Performing Loans				Total Acquired Loans
Commercial, financial, and agricultural		$	929				22,274				23,203
Real estate - mortgage			6,844				105,361				112,205
Real estate - construction			918				7,377				8,295
Consumer			336				5,887				6,223
Total		$	9,027				140,899				149,926

The following table presents changes in the carrying amount of the accretable yield on acquired loans for the year ended December 31, 2014. The Company had no acquisitions prior to the year ended December 31, 2014.

 

		2014
Balance, beginning of year		$	—
Acquisition of United			1,480
Accretion			(13	)
Net transfers from non-accretable difference to accretable yield			—
Balance, end of year		$	1,467

The following table presents the assets acquired and liabilities assumed of United as of December 15, 2014, at their initial fair value estimates:

 

		As Recorded				Fair Value				As Recorded
		By United				Adjustments				By the Company
Cash and cash equivalents		$	37,072				—				37,072
Investment securities			26,376				(966	) a			25,410
Loans			154,334				(4,408	) b			149,926
Allowance for loan losses			2,162				(2,162	) c			—
Net loans			152,172				(2,246	)			149,926
Premises and equipment, net			8,292				648	d			8,940
Core deposit intangible			—				1,776	e			1,776
Bank owned life insurance			2,151				—				2,151
Other real estate and repossessions			818				(260	) f			558
Other assets			7,269				125	g			7,394
Total Assets		$	234,150				(923	)			233,227
											—
Non-interest bearing		$	50,007				—				50,007
Interest-bearing			150,539				—				150,539
Total Deposits			200,546				—				200,546
FHLB advances			4,865				9	h			4,874
Other liabilities			217				—				217
Total Liabilities			205,628				9				205,637
											—
Net identifiable assets acquired over liabilities assumed			28,522				(932	)			27,590
Goodwill			—				5,719				5,719
Net assets acquired over liabilities assumed		$	28,522				4,787				33,309
Consideration:
Shares of common stock issued			1,617,027
Estimated value per share of the Company’s stock		$	18.72
Fair value of Company stock issued			30,271
Cash exchanged for shares and cash in lieu			2,954
Value of assumed stock options			84
Fair value of total consideration transferred		$	33,309

 

Explanation of fair value adjustments

 

a.

Adjustment reflects fair value adjustments of the available-for-sale portfolio at acquisition date.

 

b.

Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio.

 

c.

Adjustment reflects the elimination of United’s allowance for loan losses.

 

d.

Adjustment reflects the fair value adjustment on United’s main office location.

 

e.

Adjustment reflects the recording of core deposit intangible asset.

 

f.

Adjustment reflects the fair value adjustment based on the evaluation of the acquired other real estate and repossessed assets.

 

g.

Adjustment to record the deferred tax asset created by purchase adjustments.

 

h.

Adjustment reflects the fair value adjustment to the FHLB borrowings.