"We remain on schedule with our conversion and integration plans for Frontier Bank," Dorminey continued. "We continue to make progress with integrating the new team into our system and filling key strategic roles to expand in the former Frontier Bank footprint. We are excited about the opportunities for loan growth in these new markets."
Expense Management Initiatives
In connection with the Frontier FDIC-assisted acquisition, the Company is on track to close its branch in Vincent, Alabama, and its Broadway Avenue branch in Sylacauga, Alabama, during the third quarter of 2013. The Company does not expect to experience a significant reduction in customer relationships and will serve these customers from other nearby locations. Separately, the Company is on track with the implementation of staffing reductions related to the Frontier acquisition that will be completed during the third quarter of 2013, resulting in a decrease of approximately $1.6 million from Frontier's pre-acquisition level of personnel expenses.
Commenting on the expense management initiatives in the Frontier acquisition, Heath Fountain, Executive Vice President and Chief Financial Officer, said, "While expenses increased related to the Frontier acquisition and our mortgage expansion, we continue to make progress in expense management initiatives within our branch network. We will convert the former Frontier branches to our core system in the third quarter, and we are well on schedule to achieve all of our previously identified cost-saving targets."
Capital Management Initiatives
During the second quarter of 2013, the Company repurchased approximately 77,000 shares of common stock at an average price of $14.26 under its stock repurchase program. Authorization to repurchase approximately 350,000 shares remains under the current program, which is set to expire in April 2014, unless extended or otherwise completed.
The Company's estimated total risk-based capital ratio at June 30, 2013, was 14.4%, significantly exceeding the required minimum of 10% to be considered a well-capitalized institution. The ratio of tangible common equity to total tangible assets was 8.6% as of June 30, 2013.