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Business Combinations (Tables) | 12 Months Ended
--- | ---
Dec. 31, 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 on July 1, 2022:
|  | Fair Value
(in thousands, except per share data) |  |
Consideration transferred: |  |
Common stock shares issued (6,208,516) |  | $ | 89,713 |
Cash paid to Prudential Bancorp shareholders |  | 29,343 |
Value of consideration |  | 119,056 |
Assets acquired: |  |
Cash and due from banks |  | 7,532 |
Investment securities |  | 287,126 |
Loans, net |  | 554,288 |
Premises and equipment |  | 13,738 |
Other assets |  | 70,720 |
Total assets |  | 933,404 |
Liabilities assumed: |  |
Deposits |  | 532,180 |
Borrowings(1) |  | 284,000 |
Other liabilities |  | 14,441 |
Total liabilities |  | 830,621 |
Net assets acquired: |  | 102,783 |
Goodwill resulting from acquisition of Prudential Bancorp |  | $ | 16,273 |
(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 Merger date:
|  | July 1, 2022
|  | Unpaid Principal Balance |  | Fair Value
|  | (dollars in thousands)
Real estate - commercial mortgage |  | $ | 224,904 |  |  | $ | 216,613 |
Commercial and industrial |  | 63,560 |  |  | 62,050 |
Real-estate - residential mortgage |  | 177,327 |  |  | 169,098 |
Real-estate - home equity |  | 6,034 |  |  | 5,812 |
Real-estate - construction |  | 98,963 |  |  | 98,546 |
Consumer |  | 2,306 |  |  | 2,286 |
Total acquired loans |  | $ | 573,094 |  |  | $ | 554,405 |
The following table presents the carrying amount of loans for which, at the date of the Merger, there was evidence of more than insignificant deterioration of credit quality since origination:
|  | July 1, 2022
|  | (dollars 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 initial purchased credit deteriorated loans |  | $ | 25,792 |
The following table details the costs identified and classified as Merger-related expenses:
|  |  |  | Twelve Months Ended December 31
|  |  |  | 2022
|  |  | (dollars in thousands)
Salaries and employee benefits |  |  |  | $ | 938
Data processing and software |  |  |  | 1,412
Net occupancy |  |  |  | 1,658
Other outside services |  |  |  | 225
Professional fees |  |  |  | 3,053
Marketing |  |  |  | 95
Charitable donation |  |  |  | 2,000
Other |  |  |  | 947
Total Merger-related expenses |  |  |  | $ | 10,328
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
| (Unaudited)
| (dollars in thousands)
Total interest income | $ | 10,871 |
Total interest expense | 2,733
Net interest income | 8,138
Provisions for credit losses | 7,571
Net Interest Income After Provision for Credit Losses | 567
Total noninterest income | 197
Total noninterest expense | 3,583
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:
| Twelve Months Ended December 31
| 2022
| (dollars in thousands)
Goodwill at December 31, 2021 | $ | 534,266 |
Goodwill from Prudential Bancorp acquisition | 16,273 |
Goodwill at December 31, 2022 | $ | 550,539 |
Pro Forma Income Statement | The below table presents the pro forma results of the operations of the combined institutions 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 subsequent to the merger of Prudential Bank with and into the Bank.
|  |  | Year Ended December 31
|  |  |  |  | 2022 |  | 2021
|  |  |  | (dollars in thousands)
Net interest income |  |  |  |  | $ | 801,907 |  |  | $ | 687,216 |
Provision for credit losses |  |  |  |  | 34,041 |  |  | (14,400) |
Net Interest Income After Provision for Credit Losses |  |  |  |  | 767,866 |  |  | 701,616 |
Total noninterest income |  |  |  |  | 232,054 |  |  | 277,217 |
Total noninterest expenses |  |  |  |  | 663,133 |  |  | 635,568 |
Income Before Income Taxes |  |  |  |  | 336,787 |  |  | 343,265 |
Income tax expense |  |  |  |  | 57,249 |  |  | 59,985 |
Net Income |  |  |  |  | $ | 279,538 |  |  | $ | 283,280 |

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