XML 22 R9.htm IDEA: XBRL DOCUMENT
v3.23.2

Acquisitions and Divestitures | 6 Months Ended
--- | ---
Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Equipment Loan Sale During the quarter ended June 30, 2022, the Company made the decision to sell a portfolio of equipment loans for cash consideration. The sale closed on June 23, 2022. A summary of the carrying amount of the assets sold and the gain on sale is as follows:
(Dollars in thousands) |
Equipment loans | $ | 191,167 |
Accrued interest receivable | 1,587 |
Assets sold | 192,754 |
Cash consideration | 197,454 |
Return of premium liability | (708) |
Total consideration | 196,746 |
Transaction costs | 73 |
Gain on sale, net of transaction costs | $ | 3,919 |
The associated agreement contains a provision that in the event that a sold loan is prepaid in full prior to the due date of the final scheduled contractual payment, the Company will return a pro-rata portion of the premium calculated as of the date of such prepayment in full. As this transaction qualified as a sale of a group of entire financial assets, management must recognize, as proceeds, any assets obtained and liabilities incurred. Thus, management recorded a $708,000 liability for the potential return of premium measured at fair value as of the date of close. Management has elected the fair value option to account for the liability. It is recorded in other liabilities in the Company's Consolidated Balance Sheet and is marked to fair value through earnings at each reporting period. For further discussion of changes in the fair value of the return of premium liability and the period end balance, see Note 10 – Fair Value Disclosures. The gain on sale, net of transaction costs, was included in net gains (losses) on sale of loans in the Company’s Consolidated Statements of Income during the three months ended June 30, 2022 and was allocated to the Banking segment. Factored Receivable Disposal Group On June 30, 2022 and September 6, 2022, the Company entered into and closed two separate agreements to sell two separate portfolios of factored receivables. A summary of the carrying amounts of the assets and liabilities sold and the gains on sale are as follows:
(Dollars in thousands) | June 30, 2022 |  | September 6, 2022 |  | Total
Factored receivables | $ | 67,888 |  |  | $ | 20,131 |  |  | $ | 88,019 |
Accrued interest and fee income | — |  |  | 17 |  |  | 17 |
Assets held for sale | 67,888 |  |  | 20,148 |  |  | 88,036 |
Customer reserve noninterest bearing deposits | 9,682 |  |  | 1,149 |  |  | 10,831 |
Liabilities held for sale | 9,682 |  |  | 1,149 |  |  | 10,831 |
Net assets sold | 58,206 |  |  | 18,999 |  |  | 77,205 |
Cash consideration | 66,292 |  |  | 19,054 |  |  | 85,346 |
Revenue share asset | 5,210 |  |  | 1,027 |  |  | 6,237 |
Total consideration | 71,502 |  |  | 20,081 |  |  | 91,583 |
Transaction costs | 82 |  |  | 49 |  |  | 131 |
Gain on sale, net of transaction costs | $ | 13,214 |  |  | $ | 1,033 |  |  | $ | 14,247 |
The June 30, 2022 and September 6, 2022 agreements contain revenue share provisions that entitle the Company to amounts equal to fifteen percent and a range of fifteen to twenty percent, depending on client, respectively, of the future gross monthly revenue of the clients associated with the sold factored receivable portfolios. As these transactions qualified as sales of a group of entire financial assets, management recognized, as proceeds, the assets obtained and liabilities incurred. Thus, management recorded revenue share assets for the contractual right to receive future cash flows from a third party measured at fair value as of the date of close for the June 30, 2022 and September 6, 2022 agreements totaling $5,210,000 and $1,027,000, respectively. These are financial assets for which management elected the fair value option. They are recorded in other assets in the Company's Consolidated Balance Sheet and are marked to fair value through earnings at each reporting period. For further discussion of changes in the fair value of the revenue share provisions and the period end balance, see Note 10 – Fair Value Disclosures. The gains on sale, net of transaction costs, were included in net gains (losses) on sale of loans in the Company’s Consolidated Statements of Income during the three months ended June 30, 2022 and September 30, 2022, respectively, and were allocated to the Factoring segment.

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent + Details
Name: | us-gaap_MergersAcquisitionsAndDispositionsDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration