NOTE 2. SALE OF SUBSIDIARY

Avon-Dixon Agency Sale

On December 31, 2018, the Company completed the sale of specific assets and activities related to its Insurance Agency, Avon Dixon, LLC (“Avon”) to Alera Group Agency, LLC (“Alera”). Also, on this date the Company discontinued its operations of its Premium Finance Company, Mubell Finance, LLC (“Mubell”). Together, these companies are referred to as the “Insurance Subsidiaries”. The Insurance subsidiaries represented the Company’s insurance products and services segment, the activities of which related to originating, servicing and underwriting retail insurance policies. Assets sold to Alera included various intangible assets and a 40% interest in a segregated portfolio of Eastern Re. Ltd., a specialty reinsurance company. The Mubell Company, along with certain other assets and liabilities that were to be sold or settled separately within one year, were classified as discontinued operations in the accompanying Consolidated Balance Sheets and Consolidated Statements of Income.

The specific assets acquired by Alera include, among other things, the insurance origination offices, insurance expirations, workforce and system procedures, trade names and goodwill. Alera has assumed certain obligations and liabilities of the Company under the acquired leases, and with respect to the employment of transferred employees. The Company received $25.2 million cash payment, upon the closing of the transaction.

The following table summarizes the calculation of the net gain on disposal of discontinued operations:


($ in thousands)	Year Ended December 31, 2018
Proceeds from the transaction	$	29,276
Compensation expense related to the transaction		2,588
Broker fees		935
Other transaction costs		594
Net cash proceeds		25,159
Net assets sold		(12,423)
Net gain on disposal	$	12,736

The following tables present the financial information of discontinued operations as of the dates and for the periods indicated:

Balance Sheets of Discontinued Operations


	December 31,		December 31,
($ in thousands)	2019		2018
ASSETS

Goodwill	$	—	$	8
Other assets		—		625
Assets of discontinued operations	$	—	$	633

LIABILITIES

Accrued expenses and other liabilities	$	—	$	3,323
Liabilities of discontinued operations	$	—	$	3,323

Statements of Income of Discontinued Operations


	For Year Ended
	December 31,
($ in thousands)	2019		2018
Noninterest income
Net gain on disposal	$	—	$	12,736
Insurance agency commissions		—		9,006
All other income		15		335
Total noninterest income		15		22,077
Noninterest expense
Salaries and wages		28		5,156
Employee benefits		7		1,173
Occupancy expense		14		428
Furniture and equipment		1		—
Amortization of intangible assets		—		47
Legal and professional fees		73		77
Other noninterest expenses		5		1,039
Total noninterest expense		128		7,920
(Loss) income from discontinued operations before income taxes		(113)		14,157
Income tax (benefit) expense		(27)		4,923
(Loss) income from discontinued operations	$	(86)	$	9,234