Business Combination (Tables)

3 Months Ended

Sep. 30, 2024

Schedule of Assets Acquired and Liabilities Assumed at Estimated Fair Value

The following table sets forth assets acquired and liabilities assumed in the acquisition of Regal Bancorp, at their estimated fair values as of the closing date of the transaction:


	As recorded by Regal Bancorp			Fair value adjustments				As recorded at acquisition
	(Dollars in thousands)
Consideration paid (3,023,369 Regal Bancorp shares at $23.00 per share)									69,538
Assets Acquired
Cash and cash equivalents	$	55,294		$	—			$	55,294
Time deposits in other financial institutions		8,810							8,810
Securities available-for-sale, at fair value		12,487							12,487
Securities held-to-maturity, at amortized cost		2,587							2,587
Federal Home Loan Bank stock and other restricted stock		548							548
Loans receivable, net		335,971			(14,371	)	(a)		321,600
Allowance for credit losses		(4,076	)		4,076		(b)		—
Accrued interest receivable		1,214							1,214
Premises and equipment, net		1,570							1,570
Right-of-use asset		3,416							3,416
Goodwill		1,047			(1,047	)	(c)		—
Core deposit intangible		26			9,038		(d)(e)		9,064
Deferred costs		224			(224	)	(f)		—
Bank owned life insurance		7,470							7,470
Net deferred tax asset		1,634			(78	)	(g)(i)		1,556
Other assets		2,430			(201	)	(i)		2,229
Total assets acquired	$	430,652		$	(2,807	)		$	427,845

Liabilities assumed
Deposits	$	373,174		$	(1,299	)	(h)	$	371,875
Lease liability		3,444							3,444
Deferred compensation		1,521							1,521
Accrued expenses and other liabilities		2,132			(248	)	(i)		1,884
Total liabilities assumed	$	380,271		$	(1,547	)		$	378,724
Net assets acquired								$	49,121
Goodwill recorded at merger									20,417

(a)

Adjustment for interest rate and credit risk to reduce loans to fair value, to be amortized as an increase to interest income over their remaining term

(b)

Elimination of Regal Bank allowance for loan losses.

(c)

Elimination of pre-existing goodwill.

(d)

Recording of new intangible asset for the fair value of core deposits, to be amortized on an accelerated basis over the estimated average life of the deposit base.

(e)

Elimination of pre-existing intangible asset for the fair value of core deposits.

(f)

Elimination of deferred costs

(g)

Recording of the deferred income tax effects of fair value adjustments.

(h)

Adjustment to reduce time deposits to fair value, to be amortized as an increase to interest expense over their remaining term.

(i)

Final adjustments of income taxes, other assets and other liabilities.