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Acquisition & Divestiture Activity | 3 Months Ended
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Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisition & Divestiture Activity | Note 14 – Acquisition & Divestiture Activity Chartwell Compliance In February 2023, we completed the sale of the Bank’s wholly-owned subsidiary, Chartwell, for total consideration of $14.4 million in the form of a note issued to the buyer, resulting in a gain on sale of $11.8 million. The note matures June 20, 2027 and bears interest at a fixed rate of 7%, payable in four equal annual installments commencing June 20, 2024. To facilitate a transition of the Chartwell services and support the onboarding and conversion of systems, we entered into a 60 day Employee Lease and Service Agreement, whereby we will provide the purchaser with finance and accounting, human capital, information technology, marketing and record/data retention services. In addition, we entered into a contract with the purchaser to continue to provide services and support from Chartwell for three years following the sale. Balances attributable to Chartwell are included in assets from discontinued operations and liabilities from discontinued operations on our December 31, 2022 balance sheet. There were no assets from discontinued operations or liabilities from discontinued operations as of March 31, 2023. Chartwell's net income is presented in income from discontinued operations for all periods shown. Prior period balances have been reclassified to conform with this presentation. The following table presents the major classes of assets held-for-sale from discontinued operations and liabilities held-for-sale from discontinued operations as of December 31, 2022:
(Dollars in thousands) |  | December 31, 2022
Premises and equipment |  | $ | 23 |
Accrued interest receivable and other assets |  | 3,142 |
Goodwill |  | 1,150 |
Total assets from discontinued operations |  | $ | 4,315 |
Accrued interest payable and other liabilities |  | $ | 5,444 |
Total liabilities from discontinued operations |  | $ | 5,444 |
The following table presents the major classes of net income from discontinued operations for the periods shown:
|  | Three Months Ended March 31,
(Dollars in thousands) |  | 2023 |  | 2022
Compliance consulting income |  | $ | 2,369 |  |  | $ | 4,095 |
Gain on sale of discontinued operations |  | 11,800 |  |  |
Total income |  | $ | 14,169 |  |  | $ | 4,095 |
Salaries and employee benefits |  | $ | 2,082 |  |  | $ | 2,234 |
Other expenses |  | 256 |  |  | 875 |
Total expenses |  | $ | 2,338 |  |  | $ | 3,109 |
Income before income taxes |  | $ | 11,831 |  |  | $ | 986 |
Income taxes |  | 3,049 |  |  | 225 |
Net income from discontinued operations |  | $ | 8,782 |  |  | $ | 761 |
Integrated Financial Holdings, Inc. In August 2022, we entered into a Merger Agreement (the “Merger Agreement”) with Integrated Financial Holdings, Inc. (“IFH”). The Merger Agreement provided that IFH would merge with and into MVB, with MVB continuing as the surviving corporation (the “Merger”). Following the Merger, West Town Bank & Trust, a state bank chartered under the laws of Illinois and wholly-owned subsidiary of IFH, would merge with and into the Bank, with the Bank as the surviving bank (the “Bank Merger”), pursuant to the Agreement and Plan of Merger, dated October 4, 2022, between West Town Bank & Trust and the Bank (the “Bank Merger Agreement” and, together with the Merger Agreement, the “Merger Agreements”). On May 9, 2023, MVB, IFH, West Town Bank & Trust and the Bank entered into a Termination Agreement pursuant to which the parties mutually agreed to terminate the Merger Agreements and mutually released one another from any claims (subject to limited customary exceptions) related to the contemplated merger transactions.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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