Business Combinations (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Business Acquisitions, by Acquisition

ACQUISITION

The following assets acquired and liabilities assumed, both tangible and intangible, of the acquired entity are presented at estimated fair value as of the acquisition date:


	Acquisition and
	Date Acquired
	Civic Financial
	Services
	February 1, 2021
	(In thousands)
Assets Acquired:
Cash and due from banks	$	37,328




Loans and leases	65,600
Premises and equipment	1,194


Goodwill	125,422
Customer relationship intangible	750
Other assets	77,725
Total assets acquired	$	308,019

Liabilities Assumed:
Noninterest-bearing demand deposits	$	36,980


Borrowings	50,210

Accrued interest payable and other liabilities	61,592
Total liabilities assumed	$	148,782

Total consideration - paid in cash	$	159,237

Acquisition of Civic

On February 1, 2021, the Bank completed the acquisition of Civic in an all-cash transaction. Civic, located in Redondo Beach, California, is one of the leading lenders in the United States specializing in residential non-owner-occupied investment properties. The acquisition of Civic advances the Bank’s strategy to diversify and expand its lending portfolio, diversify its revenue streams, and deploy excess liquidity into higher-yielding assets. Civic operates as a subsidiary of the Bank and at March 31, 2021 had $289.5 million of loans outstanding.

The Civic acquisition has been accounted for under the acquisition method of accounting. We acquired $308.0 million of assets and assumed $148.8 million of liabilities upon closing of the acquisition. We made significant estimates and exercised significant judgment in estimating fair values and accounting for such acquired assets and assumed liabilities. Such fair values are preliminary estimates and are subject to adjustment for up to one year after the acquisition date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier. The application of the acquisition method of accounting resulted in the recognition of goodwill of $125.4 million. All of the recognized goodwill is expected to be deductible for tax purposes.