| Fair Value of Assets Acquired and Liabilities Assumed |
The following table provides a summary of the assets acquired and liabilities assumed as recorded by Metro, the fair value adjustments necessary to adjust those acquired assets and assumed liabilities to estimated fair value, and the resultant fair values of those assets and liabilities as recorded by the Company. | | | January 31, 2015 | | | | | As recorded by | | Fair value | | | | As recorded by | | | | | Metro | | adjustments | | | | the Company | | | Assets acquired: | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 8,543 | | $ | - | | | | $ | 8,543 | | | Debt securities | | | 28,833 | | | (41) | | a | | | 28,792 | | | Equity securities | | | 499 | | | - | | | | | 499 | | | Loans | | | 152,869 | | | (3,874) | | b | | | 148,995 | | | Allowance for loan losses | | | (1,621) | | | 1,621 | | b | | | - | | | Premises and equipment, net | | | 7,606 | | | 762 | | c | | | 8,368 | | | Accrued interest receivable | | | 484 | | | - | | | | | 484 | | | Deferred taxes | | | 754 | | | 3,153 | | d | | | 3,907 | | | Other real estate owned | | | 2,373 | | | (25) | | e | | | 2,348 | | | Bank owned life insurance contracts | | | 2,685 | | | - | | | | | 2,685 | | | Core deposit intangible | | | - | | | 2,090 | | f | | | 2,090 | | | Other assets | | | 364 | | | - | | | | | 364 | | | Total assets acquired | | | 203,389 | | | 3,686 | | | | | 207,075 | | | Deposits | | | 175,236 | | | 518 | | g | | | 175,754 | | | Federal funds purchased | | | 2,175 | | | - | | | | | 2,175 | | | Other borrowings | | | 1,400 | | | (4) | | h | | | 1,396 | | | Accrued interest payable | | | 89 | | | - | | | | | 89 | | | Other liabilities | | | 996 | | | - | | | | | 996 | | | Total liabilities assumed | | | 179,896 | | | 514 | | | | | 180,410 | | | Net assets acquired | | $ | 23,493 | | $ | 3,172 | | | | $ | 26,665 | | | Consideration Paid: | | | | | | | | | | | | | | Cash | | | | | | | | | | $ | (20,926) | | | Stock | | | | | | | | | | | (19,356) | | | Total consideration paid | | | | | | | | | | | (40,282) | | | Goodwill | | | | | | | | | | $ | 13,617 | | Explanation of fair value adjustments: | | a- | Adjustment reflects the fair value adjustment based on the Company’s pricing of the acquired debt securities portfolio. | | | b- | Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired loan portfolio and to eliminate the recorded allowance for loan losses. | | | c- | Adjustment reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment acquired. | | | d- | Adjustment reflects the differences in the carrying values of acquired assets and assumed liabilities for financial statement purposes and their basis for federal income tax purposes. | | | e- | Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other real estate owned acquired. | | | f- | Adjustment reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. |
| | g- | Adjustment reflects the fair value adjustment based on the Company’s evaluation of the acquired deposits. | | | h- | Adjustment reflects the fair value adjustment based on the Company’s evaluation of the assumed debt. |
|