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Acquisitions and Divestitures | 12 Months Ended
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Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
Acquisitions and Divestitures | Note 25 – Acquisitions and Divestitures Flexia Payments, LLC In May 2023, MVB Technology entered into an Assignment and Assumption Agreement with Flexia, wherein Flexia assigned loans outstanding between Flexia and MVB to MVB Technology. In consideration for the assignment, Flexia granted a license to MVB Technology for the Flexia software. Additionally, through a Mutual Release Agreement between Edge Ventures and Flexia, Edge Ventures transferred its 800 Class A Common Units and 1,500 Preferred Units of Flexia back to Flexia for cancellation. As a result of the transactions, we incurred a loss of $1.1 million, which is included in loss on acquisition and divestiture activity in the accompanying consolidated statements of income, and no longer consolidate Flexia in our financial statements. 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 provided 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 receive services and support from Chartwell for three years following the sale. We have paid $2.5 million in fees related to this contract during the year ended December 31, 2023. Balances attributable to Chartwell are included in assets from discontinued operations and liabilities from discontinued operations on our December 31, 2022 consolidated balance sheet. There were no assets from discontinued operations or liabilities from discontinued operations as of December 31, 2023. Chartwell's net income, including the $11.8 million gain, is presented in income from discontinued operations for all periods shown. Prior period balances have been reclassified to conform with this presentation. Chartwell's depreciation and amortization expense was $0.1 million and $0.6 million for the year ended December 31, 2023 and December 31, 2022, respectively. 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:
|  | Twelve Months Ended December 31,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2021
Compliance consulting income |  | $ | 2,369 |  |  | $ | 17,151 |  |  | $ | 11,427 |
Gain on sale of discontinued operations |  | 11,800 |  |  | — |  |  | — |
Total income |  | $ | 14,169 |  |  | $ | 17,151 |  |  | $ | 11,427 |
Salaries and employee benefits |  | $ | 2,082 |  |  | $ | 9,628 |  |  | $ | 7,245 |
Other expenses |  | 256 |  |  | 4,036 |  |  | 3,083 |
Total expenses |  | $ | 2,338 |  |  | $ | 13,664 |  |  | $ | 10,328 |
Income before income taxes |  | $ | 11,831 |  |  | $ | 3,487 |  |  | $ | 1,099 |
Income taxes |  | 3,049 |  |  | 834 |  |  | 241 |
Net income from discontinued operations |  | $ | 8,782 |  |  | $ | 2,653 |  |  | $ | 858 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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