Business Combination (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination [Abstract]

Assets Acquired and Liabilities Assumed

The following table represents the assets acquired and liabilities assumed in the CFBanc Merger as of April 1, 2021, and the fair value adjustments and amounts recorded by the Company as of the same date under the acquisition method of accounting:

		CFBanc Book Value			Fair Value Adjustments			Fair Value
Assets acquired	(In thousands)
Cash and cash equivalents		$	84,745		$	-		$	84,745
Securities available-for-sale			150,052			(77	)		149,975
Loans receivable held for investment:
Gross loans receivable held for investment			227,669			(1,784	)		225,885
Deferred fees and costs			(315	)		315			-
Allowance for loan losses			(2,178	)		2,178			-
			225,176			709			225,885
Accrued interest receivable			1,637			-			1,637
FHLB and FRB stock			1,061			-			1,061
Office properties and equipment			5,152			1,801			6,953
Deferred tax assets, net			890			(1,608	)		(718	)
Core deposit intangible			-			3,329			3,329
Other assets			2,290			-			2,290
Total assets		$	471,003		$	4,154		$	475,157
Liabilities assumed
Deposits		$	353,671		$	51		$	353,722
Securities sold under agreements to repurchase			59,945			-			59,945
FHLB advances			3,057			109			3,166
Notes payable			14,000			-			14,000
Accrued expenses and other liabilities			4,063			-			4,063
Total liabilities		$	434,736		$	160		$	434,896
Excess of assets acquired over liabilities assumed		$	36,267		$	3,994		$	40,261
Consideration paid								$	66,257
Goodwill recognized								$	25,996

Contractual Amounts Due, Expected Cash Flows to Be Collected, Interest Component, and Fair Value of Loans Acquired

The contractual amounts due, expected cash flows to be collected, the interest component, and the fair value of loans acquired from CFBanc as of the acquisition date were as follows:

	Acquired Loans
	(In thousands)
Contractual amounts due	$	231,432
Cash flows not expected to be collected		(3,666	)
Expected cash flows		227,766
Interest component of expected cash flows		(1,881	)
Fair value of acquired loans	$	225,885

Fair Value of PCI Loans

The following table presents the amounts that comprise the fair value of PCI loans (in thousands):

Contractual amounts due	$	1,825
Non-accretable difference (cash flows not expected to be collected)		(634	)
Expected cash flows		1,191
Accretable yield		(346	)
Fair value of acquired loans	$	845

Unaudited Pro Forma Information

The following table presents the net interest income, net income, and earnings per share as if the CFBanc Merger was effective as of January 1, 2020. The unaudited pro forma financial information included in the table below is based on various estimates and is presented for informational purposes only and does not indicate the financial condition or results of operations of the combined Company that would have been achieved for the periods presented had the transactions been completed as of the date indicated or that may be achieved in the future.

	Three Months Ended						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
	(Dollars in thousands except per share amounts)
Net interest income		$	5,978	$	5,738		$	16,988		$	16,068
Net income (loss)			191		(343	)		(3,348	)		(157	)
Basic earnings per share		$	0.00	$	(0.01	)	$	(0.05	)	$	0.00
Diluted earnings per share		$	0.00	$	(0.01	)	$	(0.05	)	$	0.00