Note 2 - Acquisition

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Business Combination Disclosure [Text Block]

2

.    

Acquisition

On

July

31,

2015,

the Company completed the acquisition of New York-based Asia Bancshares, Inc., parent of Asia Bank. Asia Bank operated

three

branch locations in New York City and

one

branch location in the state of Maryland. The acquisition allowed the Company to expand its number of branches in New York City and to enter the state of Maryland. The purchase consideration consisted of

fifty

-

five

percent in Bancorp stock

and

forty

-

five

percent in cash. The fair value of the consideration

was

$139.9

million, which consisted of

2,580,359

shares of Bancorp common stock valued at

$82.9

million at the date of acquisition and

$57.0

million in cash.

Goodwill from the acquisition represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is not deductible for tax purposes. As a result of the business combination, the Company recorded goodwill of

$55.8

million.

The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the

July

31,

2015

acquisition date. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. We have included the financial results of the business combinations in the condensed consolidated statement of income beginning on the acquisition date.

The fair value of the assets and the liabilities acquired as of

July

31,

2015

are shown below:

	Asia Bancshares, Inc
Assets acquired:
Cash and cash equivalents	$	63,579
Securities available-for-sale		2,370
Loans		419,219
Premises and equipment		13,291
Other real estate owned		3,048
Goodwill		55,849
Core deposit intangible		1,302
Accrued interest receivable and other assets		2,884
Total assets acquired		561,542
Liabilities assumed:
Deposits		420,623
Accrued interest payable and other liabilities		1,056
Total liabilities assumed		421,679
Net assets acquired	$	139,863
Cash paid	$	57,006
Fair value of common stock issued		82,857
Total consideration paid	$	139,863