Note 3. Business Combinations On April 1, 2017, the Company and Virginia BanCorp, Inc. (Virginia BanCorp), a bank holding company conducting substantially all of its operations through its subsidiary, Virginia Commonwealth Bank, completed a merger (the Merger). The Company is the surviving corporation in the Merger, and the former shareholders of Virginia BanCorp received 1.178 shares of the Companys common stock for each share of Virginia BanCorp common stock they owned immediately prior to the Merger, for a total issuance of 4,586,221 shares of the Companys common stock valued at approximately $42.2 million at the time of closing. As of the completion of the Merger, the Companys legacy shareholders owned approximately 51% of the outstanding common stock of the Company, and Virginia BanCorps former shareholders owned approximately 49% of the outstanding common stock of the Company. After the Merger, Virginia BanCorps subsidiary bank was merged with and into Bank of Lancaster, a wholly-owned subsidiary of the Company, and immediately thereafter Bank of Lancaster changed its name to Virginia Commonwealth Bank. The Merger was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations . Under this method, the assets and liabilities of Virginia BanCorp were recorded at their respective estimated fair values as of the date of the Merger, April 1, 2017. Determining the fair value of assets and liabilities, particularly for the loan portfolio, is a complex process involving significant judgment regarding methods and assumptions used to calculate the estimated fair values. The Company recorded goodwill of $7.6 million in connection with the Merger, none of which is deductible for income tax purposes. The following table details the total consideration paid by the Company in the Merger, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill. As Recorded by Virginia BanCorp Fair Value and Reclassification Adjustments As Recorded by the Company Consideration paid: Bay Banks of Virginia, Inc. common stock $ 42,247 Identifiable assets acquired: Cash and due from banks $ 2,356 $  $ 2,356 Interest-earning deposits 12,342  12,342 Securities available-for-sale 22,088  22,088 Restricted securities 1,543  1,543 Loans receivable 272,479 (62,068 ) 210,411 Loans held for sale  55,648 55,648 Deferred income taxes 1,325 255 1,580 Premises and equipment, net 3,333 2,703 6,036 Accrued interest receivable 1,253 (24 ) 1,229 Other real estate owned 3,113  3,113 Core deposit intangible  3,670 3,670 Bank owned life insurance 8,430  8,430 Mortgage servicing rights 324  324 Other assets 365  365 Total identified assets acquired 328,951 184 329,135 Identifiable liabilities assumed: Noninterest-bearing deposits 21,119  21,119 Savings and interest-bearing demand deposits 124,640  124,640 Time deposits 121,437 733 122,170 Federal Home Loan Bank advances 25,000  25,000 Other liabilities 1,525  1,525 Total identifiable liabilities assumed 293,721 733 294,454 Total identifiable assets assumed $ 35,230 $ (549 ) $ 34,681 Goodwill resulting from acquisition $ 7,566 Pro Forma Financial Information The table below illustrates the unaudited pro forma revenue and net income of the combined entities for the year ended December 31, 2017 had the Merger taken place on January 1, 2017. The unaudited combined pro forma revenue and net income combines the historical results of Virginia BanCorp with the Companys consolidated statements of operations for the period noted, and while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2017. Merger-related expenses of $2.0 million were included in the Companys actual consolidated statements of operations for the year ended December 31, 2017, but were excluded from the unaudited pro forma information below. Legacy Virginia BanCorp incurred $174 thousand of Merger-related expenses during the first three months of 2017, which was also excluded from the unaudited pro forma information below. Year Ended December 31, 2017 Net interest income $ 27,169 Net income 1,825