Summary of Net Liabilities Assumed |
As explained in the notes that accompany the following table, the assets acquired and liabilities assumed were recorded at the acquisition date fair value. | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | As recorded by The First State Bank | | Fair Value Adjustments | | | | As recorded by MVB | Assets | | | | | | | | | Cash and cash equivalents | | $ | 26,053 | | | $ | — | | | | | $ | 26,053 | | Investment securities - available-for-sale, at fair value | | 10,964 | | | — | | | | | 10,964 | | Loans | | 83,514 | | | (22,861) | | | (a) | | 60,653 | | OREO | | 22,610 | | | (10,520) | | | (b) | | 12,090 | | Premises and equipment, net | | 1,582 | | | (12) | | | (c) | | 1,570 | | Accrued interest receivable and other assets | | 2,234 | | | 211 | | | (d) | | 2,445 | | Total Assets | | $ | 146,957 | | | $ | (33,182) | | | | | $ | 113,775 | | | | | | | | | | | Liabilities | | | | | | | | | Deposits - transaction accounts | | $ | 70,931 | | | $ | — | | | | | $ | 70,931 | | Deposits - certificates of deposit | | 69,029 | | | 2,560 | | | (e) | | 71,589 | | Total deposits | | 139,960 | | | 2,560 | | | | | 142,520 | | FHLB and other borrowings | | 5,800 | | | — | | | | | 5,800 | | Accrued interest payable and other liabilities | | 411 | | | — | | | | | 411 | | Total Liabilities | | $ | 146,171 | | | $ | 2,560 | | | | | $ | 148,731 | | | | | | | | | | | Net identifiable assets acquired over/(under) liabilities assumed | | $ | 786 | | | $ | (35,742) | | | | | $ | (34,956) | |
(a) Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired loan portfolio and excludes the allowance for loan losses recorded by First State. (b) Adjustment reflects the fair value of OREO acquired. (c) Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired premises and equipment. (d) Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts and the fair value adjustment to other assets. (e) Adjustment arises since the interest rates paid on interest-bearing deposits where higher than rates available in the market on similar deposits as of the acquisition date. The following table summarizes the assets acquired and liabilities assumed in the First State acquisition as of the acquisition date, and the pre-tax bargain purchase gain of $4.7 million recognized on the transaction, which is included in gains on acquisition and divestiture activity in the consolidated statements of income. | | | | | | | | | | | | | | | (Dollars in thousands) | | | | | Assets acquired at fair value: | | | | | Cash and cash equivalents | | $ | 26,053 | | | | Investment securities - available-for-sale, at fair value | | 10,964 | | | | Loans | | 60,653 | | | | OREO | | 12,090 | | | | Premises and equipment, net | | 1,570 | | | | Accrued interest receivable and other assets | | 2,445 | | | | Total fair value of assets acquired | | $ | 113,775 | | | | | | | | | Liabilities assumed at fair value: | | | | | Deposits | | $ | 142,520 | | | | FHLB and other borrowings | | 5,800 | | | | Accrued interest payable and other liabilities | | 411 | | | | Total fair value of liabilities acquired | | $ | 148,731 | | | | | | | | | Net assets assumed at fair value | | | | $ | (34,956) | | Transaction cash consideration received from the FDIC | | | | 39,627 | | Bargain purchase gain, before tax | | | | $ | 4,671 | |
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Summary of Loans Acquired |
PCI loans purchased during 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows: | | | | | | | | | | | (Dollars in thousands) | | | | | Contractually required payments receivable of loans purchased during the period: | | | Commercial | | $ | 36,046 | | | | Residential | | 47,787 | | | | | | | | | Consumer | | 2,990 | | | | Cash flows expected to be collected at acquisition | | $ | 86,823 | | | | Fair value of loans acquired at acquisition | | $ | 50,235 | | | |
The following table outlines the contractually required payments receivable, cash flows the Company expects to receive, non-accretable credit adjustments and the accretable yield for all First State loans as of the acquisition date: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Contractually Required Payments Receivable | | Non-Accretable Credit Adjustments | | Cash Flows Expected to be Collected | | Accretable FMV Adjustments | | Carrying Value of Loans Receivable | PCI loans | | $ | 86,823 | | | $ | 24,842 | | | $ | 61,981 | | | $ | 11,746 | | | $ | 50,235 | | Purchased performing loans | | 12,818 | | | 2,561 | | | 10,257 | | | 1,817 | | | 8,440 | | Other purchased loans | | 1,978 | | | — | | | 1,978 | | | — | | | 1,978 | | Total | | $ | 101,619 | | | $ | 27,403 | | | $ | 74,216 | | | $ | 13,563 | | | $ | 60,653 | |
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Assets and Liabilities of Branches Held for Sale |
Assets to be acquired and liabilities to be assumed that were classified as held-for-sale as of December 31, 2019 are summarized as follows: | | | | | | | | | | | (Dollars in thousands) | | | | As of December 31, 2019, | Loans | | | | $ | 42,916 | | Premises and equipment, net | | | | 3,638 | | Assets of branches held-for-sale | | | | $ | 46,554 | | | | | | | Noninterest-bearing deposits | | | | $ | 19,251 | | Interest-bearing deposits | | | | 169,019 | | Deposits of branches held-for-sale | | | | $ | 188,270 | |
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