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Business Combination (Tables)
12 Months Ended
Jun. 30, 2021
Business Combinations [Abstract]  
Summary of Assets Acquired and Liabilities Assumed Through Merger at Fair Value

The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table:

 

 

As Recorded

by MSB

 

 

Fair Value Adjustments

 

 

As Recorded

at Acquisition

 

 

(In Thousands)

 

Cash paid for acquisition

 

 

 

 

 

 

 

 

$

9,830

 

Value of stock issued

 

 

 

 

 

 

 

 

 

45,133

 

Total purchase price

 

 

 

 

 

 

 

 

$

54,963

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

14,126

 

 

$

-

 

 

$

14,126

 

Investment securities

 

4,000

 

 

 

(510

)

(a)

 

3,490

 

Loans receivable

 

537,589

 

 

 

(7,345

)

(b)

 

530,244

 

Allowance for loan losses

 

(6,037

)

 

 

6,037

 

(c)

 

-

 

Premises and equipment

 

7,698

 

 

 

(3,221

)

(d)

 

4,477

 

FHLB stock

 

3,345

 

 

 

-

 

 

 

3,345

 

Accrued interest receivable

 

1,701

 

 

 

-

 

 

 

1,701

 

Core deposit intangibles

 

-

 

 

 

690

 

(e)

 

690

 

Bank owned life insurance

 

14,663

 

 

 

-

 

 

 

14,663

 

Deferred income taxes, net

 

1,729

 

 

 

2,152

 

(f)

 

3,881

 

Other assets

 

4,830

 

 

 

495

 

(g)

 

5,325

 

Total assets acquired

$

583,644

 

 

$

(1,702

)

 

$

581,942

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

458,392

 

 

$

1,786

 

(h)

$

460,178

 

FHLB borrowings

 

62,900

 

 

 

-

 

 

 

62,900

 

Advance payments by borrowers for taxes

 

794

 

 

 

-

 

 

 

794

 

Other liabilities

 

810

 

 

 

(756

)

(i)

 

54

 

Total liabilities assumed

$

522,896

 

 

$

1,030

 

 

$

523,926

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets acquired

 

 

 

 

 

 

 

 

$

58,016

 

Bargain purchase gain

 

 

 

 

 

 

 

 

$

(3,053

)

 

Explanation of certain fair value related adjustments:

 

(a)

Represents the fair value adjustments on investment securities.

(b)

Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums.

(c)

Represents the elimination of MSB’s allowance for loan losses.

(d)

Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

(e)

Represents the intangible assets recorded to reflect the fair value of core deposits.  The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

(f)

Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(g)

Represents an adjustment to other assets acquired.

(h)

Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(i)

Represents an adjustment to other liabilities assumed.