Business Combinations and Asset Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Acquisitions

The following table summarizes the consideration transferred and the fair values of identifiable assets acquired and liabilities assumed on July 1, 2022:

	Fair Value
(dollars in thousands, except share data)
Consideration transferred:
Common stock shares issued (6,208,516)	$	89,713
Cash paid to Prudential Bancorp shareholders	29,343
Value of consideration	119,056
Assets acquired:
Cash and due from banks	7,533
Investment securities	287,126
Loans	554,091
Premises and equipment	8,574
Other assets	73,303
Total assets	930,627
Liabilities assumed:
Deposits	532,170
Borrowings(1)	284,000
Other liabilities	14,482
Total liabilities	830,652
Net assets acquired:	99,975
Goodwill resulting from the Merger	$	19,081

(1) Included a $30.5 million intercompany borrowing between Prudential Bank and Fulton Bank.

The following table presents information with respect to the fair value and unpaid principal balance of acquired loans and leases at the date of the Merger:

	July 1, 2022
	Unpaid Principal Balance		Fair Value
	(dollars in thousands)
Real estate - commercial mortgage	$	224,904	$	216,593
Commercial and industrial	63,560		61,873
Real-estate - residential mortgage	177,327		169,098
Real-estate - home equity	6,034		5,812
Real-estate - construction	98,963		98,546
Consumer	2,306		2,286
Total acquired loans	$	573,094	$	554,208

The following table presents the carrying amount of loans for which, at the date of Merger, there was evidence of more than insignificant deterioration of credit quality since origination:

	July 1, 2022
	(dollars in thousands)
Book balance of loans with deteriorated credit quality at acquisition	$	27,057
Allowance for credit losses at acquisition	(1,135)
Non-credit related discount	(130)
Total purchased credit deteriorated loans	$	25,792

Schedule of Goodwill

The following table presents the change in goodwill during the six months ended June 30, 2023:

	June 30
	2023
	(dollars in thousands)
Goodwill at December 31, 2022	$	550,539
Adjustments to goodwill from the Merger	2,807
Goodwill at June 30, 2023	$	553,346

Pro Forma Income Statement

The table below presents the pro forma results of the operations of the combined institutions as if the Merger occurred on January 1, 2022. The pro forma income statement adjustments are limited to the effects of fair value mark amortization and accretion and intangible asset amortization and do not consider future cost savings the Corporation expects to achieve subsequent to the merger of Prudential Bank with and into the Bank.

	Six months ended June 30
	2023		2022
	(dollars in thousands)
Net interest income	$	428,439	$	357,410
Provision for credit losses	34,291		(225)
Net Interest Income After Provision for Credit Losses	394,148		357,635
Total noninterest income	112,339		118,571
Total noninterest expenses	327,636		324,182
Income Before Income Taxes	178,851		152,024
Income tax expense	30,931		26,468
Net Income	$	147,920	$	125,556