v3.26.1
Business Acquisition (Tables)
 6 Months Ended
Jun. 30, 2026
Business Acquisition [Abstract]  
Schedule of Cash Consideration Paid for Outstanding Shares of Cecil’s Common Stock

The following table summarizes the actual cash consideration paid for outstanding shares of Cecil’s common stock, including restricted stock that vested upon change in control, and the settlement of stock options (dollars in thousands except per share data):

 

          $  
Cash exchange for outstanding Cecil common shares:                
Number of shares outstanding     16,426,998          
Exchange rate per share   $ 1.88          
Cash exchanged for outstanding shares             30,883  
Number of options outstanding     769,231          
Exchange rate per option   $ 1.88          
Exercise price per option     1.30          
Difference     0.58          
Cash exchanged for outstanding options             446  
Cash exchanged for outstanding Cecil common shares             31,329  
Schedule of Acquisition consideration

The total Acquisition consideration as shown in the table above is allocated to Cecil’s tangible and intangible assets and liabilities based on their fair value as follows (in thousands):

 

    Cecil Bancorp, Inc.       Cecil Bancorp, Inc.
    Book Value   Fair Value   Fair Value
    February 1, 2026   Adjustments   February 1, 2026
    $   $   $
             
Total purchase price consideration                     31,329  
                         
Recognized amounts of identifiable assets acquired and liabilities assumed:                        
Cash and equivalents     30,361       —         30,361  
Securities available for sale     19,213       (183 )     19,030  
Loans, gross     152,992       (5,592 )     147,400  
Allowance for credit losses     (1,517 )     (481 )     (1,998 )
Loans, net of allowance     151,475       (6,073 )     145,402  
Premises and equipment     2,580       (463 )     2,117  
Regulatory stock     1,085       —         1,085  
Core deposit intangible     —         2,746       2,746  
Operating lease right of use asset     578       (107 )     471  
Deferred tax assets     9,604       (1,633 )     7,971  
Other assets     2,712       (214 )     2,498  
Total identifiable assets acquired     217,608       (5,927 )     211,681  
Deposits     186,681       (297 )     186,384  
Operating lease liability     591       (89 )     502  
Reserve for unfunded commitments     52       (37 )     15  
Other liabilities     163       —         163  
Total liabilities assumed     187,487       (423 )     187,064  
Total identifiable net assets     30,121       (5,504 )     24,617  
Goodwill                     6,712  
Schedule of PCD Loans at Acquisition

Of the $147,400,000 net loans acquired, $11,014,000 were identified as PCD loans on the Acquisition date. The following table provides a summary of these PCD loans at Acquisition at February 1, 2026 (in thousands):

 

    February 1,
    2026
    $
     
Purchased deteriorated loans        
Par value of acquired loans at acquisition     11,234  
Allowance for credit losses at acquisition     (206 )
Non-credit discount at acquisition     (14 )
Total acquisition consideration     11,014  
Schedule of Unaudited Proforma Information In addition, the unaudited proforma information excluded merger-related expenses, and does not reflect management’s estimate of any revenue-enhancing opportunities or anticipated cost savings as a result of integration (dollars in thousands):

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2026   2025   2026   2025
    $   $   $   $
                 
Total revenues     33,757       33,295       66,941       65,359  
Net income     6,905       6,078       12,821       10,635