Note 10 - SALE OF SUBSIDIARY

9 Months Ended

Sep. 30, 2020

SALE OF SUBSIDIARY

SALE OF SUBSIDIARY

NOTE 10 –SALE OF SUBSIDIARY

On August 12, 2020, the Company sold all the issued and outstanding capital stock of the Bates Companies. The aggregate consideration paid to the Company was a $500 thousand note receivable, less imputed interest of $52 thousand, plus cancellation of all future amounts otherwise to become payable to the purchaser by the Company under an earn-out agreement entered into between the same parties in 2018 with a non-discounted value of approximately $880 thousand at September 30, 2020.  

Assets and liabilities of the Bates Companies sold are summarized as follows as of the date of closing:

	As of
	August 12, 2020
	(dollars in thousands)
ASSETS
Cash and due from banks	$	349
Premises and equipment, net		19
Other assets		2,211
Total assets sold	$	2,579
LIABILITIES
Other liabilities	$	946
Total liabilities sold	$	946
Net assets sold	$	1,633
Forgiveness of earn-out consideration		880
Note receivable consideration		448
Loss on sale of subsidiary	$	305

Disposition costs related to the sale totaled $192 thousand and were comprised primarily of legal, accounting and personnel costs.