XML 34 R24.htm IDEA: XBRL DOCUMENT v3.22.2.2
Business Combinations and Asset Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Acquisitions
The following table summarizes the consideration transferred and the fair values of identifiable assets acquired and liabilities assumed:
Fair Value
(in thousands, except per share data)
Consideration transferred:
 Common stock shares issued (6,208,516)
$89,713 
Cash paid to Prudential Bancorp shareholders29,343 
     Value of consideration119,056 
Assets acquired:
     Cash and due from banks7,532 
     Investment securities287,126 
     Loans554,288 
     Premises and equipment13,743 
     Other assets70,874 
          Total assets933,563 
Liabilities assumed:
     Deposits532,180 
Borrowings(1)
284,000 
     Other liabilities14,583 
          Total liabilities830,763 
Net assets acquired:102,800 
Goodwill resulting from acquisition of Prudential Bancorp$16,256 
(1) Includes a $30.5 million intercompany borrowing between Prudential Bank and Fulton Bank.
The following table presents information with respect to the fair value and unpaid principal balance of acquired loans and leases at the date of the Merger:

July 1, 2022
Unpaid Principal BalanceFair Value
(in thousands)
Real estate - commercial mortgage$224,904 $216,613 
Commercial and industrial63,560 62,050 
Real-estate - residential mortgage177,327 169,098 
Real-estate - home equity6,034 5,812 
Real-estate - construction98,963 98,546 
Consumer2,306 2,286 
     Total acquired loans$573,094 $554,405 

The following table presents the carrying amount of loans for which, at the date of Merger, there was evidence of more than insignificant deterioration of credit quality since origination:

July 1, 2022
(in thousands)
Book balance of loans with deteriorated credit quality at acquisition$27,057 
Allowance for credit losses at acquisition(1,135)
Non-credit related discount(130)
     Total purchased credit deteriorated loans$25,792 
The following table details the costs identified and classified as Merger-related expenses:

Three Months Ended September 30Nine Months Ended September 30
20222022
(in thousands)
Salaries and employee benefits$487$487
Data processing and software1,1131,114
Net occupancy1,5521,554
Other outside services216221
Professional fees1,2502,444
Marketing8888
Charitable donation2,0002,000
Other300526
     Total Merger-related expenses$7,006$8,434
The following table summarizes the results of operations contributed by Prudential Bancorp for the three-month period ended September 30, 2022 presented in the unaudited Consolidated Statements of Income:

Three Months Ended September 30
2022
(in thousands)
Total interest income$10,871 
Total interest expense2,733
 Net interest income8,138
Provisions for credit losses7,571
     Net Interest Income After Provision for Credit Losses567
Total noninterest income197
Total noninterest expense3,583
     Income Before Income Taxes(2,819)
Income taxes(753)
     Net Loss$(2,066)
Schedule of Goodwill
The following table presents the change in goodwill during the period:

Nine Months Ended September 30
2022
(in thousands)
Goodwill at December 31, 2021$534,266 
Goodwill from Prudential Bancorp acquisition16,256 
Goodwill at September 30, 2022$550,522 
Pro Forma Income Statement
The below table presents the pro forma results of the operations of the combined institutions (Prudential Bancorp and the Corporation) as if the Merger occurred on January 1, 2021. The pro forma income statement adjustments are limited to the effects of fair value mark amortization and accretion and intangible asset amortization and do not consider future cost savings the Corporation expects to achieve with the merging Prudential Bank with and into the Bank. No additional Merger-related expenses have been included in the pro forma results of operations.

Three Months Ended September 30Nine Months Ended September 30
2022202120222021
(in thousands)
Net interest income$215,582 $177,328 $575,996 $515,674 
Provision for credit losses18,958 (400)19,528 (9,400)
     Net Interest Income After Provision for Credit Losses196,624 177,728 556,468 525,074 
Total noninterest income59,162 63,709 177,733 212,966 
Total noninterest expenses169,558 149,234 494,671 477,342 
     Income Before Income Taxes86,228 92,203 239,530 260,698 
Income tax expense15,357 14,629 41,825 41,143 
     Net Income$70,871 $77,574 $197,705 $219,555