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Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Assets Acquired and Liabilities Assumed

We accounted for the acquisition of 5 Arches under the acquisition method of accounting pursuant to ASC 805. We performed the preliminary purchase price allocation and recorded underlying assets acquired and liabilities assumed based on their estimated fair values using the information available as of the acquisition date, with the excess of the purchase price allocated to goodwill. Through June 30, 2019, there have been no changes to our preliminary purchase price allocation, which is summarized in the following table.

Table 2.1 – 5 Arches Purchase Price Allocation



(In Thousands)	March 1, 2019
Purchase price:
Cash	$	12,575
Contingent consideration, at fair value	24,621
Purchase option, at fair value	5,082
Equity method investment, at fair value	8,052
Total consideration	$	50,330

Allocated to:
Tangible net assets acquired ⁽¹⁾	$	1,004
Goodwill	28,728
Intangible assets	24,800
Deferred tax liability	(4,202		)
Total net assets acquired	$	50,330

(1)

5 Arches net assets acquired consisted of assets of $19 million and liabilities of $18 million as of March 1, 2019.

Schedule of Finite-Lived Intangible Assets

The amortization period for each of these assets and the activity for the period from March 1, 2019 to June 30, 2019 is summarized in the table below.

Table 2.2 – Intangible Assets – Activity



(Dollars in Thousands)	Carrying Value at December 31, 2018		Additions		Amortization Expense			Carrying Value at June 30, 2019		Weighted Average Amortization Period (in years)
Finite-lived intangible assets:
Broker network	$	—	$	18,100	$	(1,207	)	$	16,893	5
Non-compete agreements	—		2,900		(322		)	2,578		3
Management fee on existing assets under management	—		2,600		(867		)	1,733		1
Tradename	—		1,200		(133		)	1,067		3
Total	$	—	$	24,800	$	(2,529	)	$	22,271	4

Finite-lived Intangible Assets Amortization Expense

All of our intangible assets are amortized on a straight-line basis. Estimated amortization expense for the remainder of 2019 and the following years is summarized in the table below.

Table 2.3 – Intangible Asset Amortization Expense by Year



(In Thousands)	June 30, 2019
2019 (6 months)	$	3,794
2020	5,420
2021	4,987
2022	3,848
2023 and thereafter	4,222
Total Future Intangible Asset Amortization	$	22,271

Schedule of Goodwill

Goodwill – Activity



(In Thousands)	Six Months Ended June 30, 2019
Beginning balance	$	—
Goodwill recognized from 5 Arches acquisition	28,728
Impairment	—
Ending Balance	$	28,728

Pro Forma Information

Unaudited Pro Forma Financial Information



	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2019		2018		2019		2018
Supplementary pro forma information:
Net interest income	$	32,322	$	35,099	$	64,588	$	70,430
Non-interest income	27,532		21,321		71,282		62,404
Net income	31,266		32,310		81,499		78,436