Asset Purchase

9 Months Ended

Sep. 30, 2020

Asset Purchase [Abstract]

Asset Purchase

(15)    Asset Purchase

On January 17, 2020, the Company completed an asset purchase of a mortgage warehouse line of business, which comprised primarily of mortgage warehouse loans. This line of business was originally developed by United Bank in Connecticut. People’s United Bank, N.A. acquired United Bank in 2019 and made the business decision to no longer support the mortgage warehouse line of business developed by United Bank. The Company acquired the mortgage warehouse loan portfolio, plus aggregate accrued interest and fees, fixed assets, and prepaid expenses. The Company also assumed the employment contracts of the six employees in the department and agreed to pay all costs associated with the acquisition, which totaled $80,000 and were reflected in the Company’s income statement for the nine months ended September 30, 2020.

The following table summarizes the consideration paid for the mortgage warehouse line of business and the amounts of assets purchased:

(In thousands)
Consideration:
Cash	$	66,962
Recognized amounts of identifiable assets acquired:
Loans		66,672
Accrued interest and fees		250
Premises and equipment		24
Other assets		16
Total identifiable assets	$	66,962

The Company paid par for the purchase. A valuation was performed and the fair value of the loans purchased approximates the purchase price.