Discontinued Operations

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Note 15 – Discontinued Operations

On June 30, 2016, the Company entered into an Asset Purchase Agreement with USI Insurance Services, in which USI purchased substantially all of the assets and assumed certain liabilities of MVB Insurance, which resulted in a pre-tax gain of $6.9 million. MVB Insurance retained the assets related to, and continues to operate, its title insurance business. The title insurance business is immaterial in terms of revenue and the Company reorganized MVB Insurance as a subsidiary of the Bank. The Company retained approximately $424 thousand in liabilities and received proceeds totaling $7.0 million related to this transaction.

Based on a measurement period that ended June 30, 2019, the Company earned and was reasonably assured to receive an estimated earn-out payment of $600 thousand related to the Asset Purchase Agreement with USI. This estimate was recorded as contingent consideration from discontinued operations. On August 27, 2019, the Company adjusted the estimate recorded in the second quarter of 2019 to match the earn-out payment received of $575 thousand.

There were no assets or liabilities related to discontinued operations at June 30, 2020 or December 31, 2019.

Net income from discontinued operations, net of tax, for the three and six months ended June 30, 2020 and 2019, was as follows:


	Six Months Ended June 30						Three Months Ended June 30
(Dollars in thousands)	2020		2019		2020		2019
NONINTEREST INCOME
Other operating income	$	—	$	600	$	—	$	600
Total noninterest income	—		600		—		600

Income from discontinued operations, before income taxes	$	—	$	600	$	—	$	600
Income tax expense - discontinued operations	—		154		—		154
Net income from discontinued operations	$	—	$	446	$	—	$	446