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Acquisition of Bankingport, Inc.
 3 Months Ended
Mar. 31, 2016
Acquisition of Bankingport, Inc. [Abstract]  
Acquisition of Bankingport, Inc.

Note 15 – Acquisition of Bankingport, Inc.

 

On January 1, 2016, the Company completed the acquisition of Bankingport, Inc. (“Bankingport”).  The results of Bankingport are included in First Bancorp's results for the period ended March 31, 2016 beginning on the January 1, 2016 acquisition date. 

 

Bankingport was an insurance agency based in Sanford, North Carolina.  This acquisition represented an opportunity to expand the insurance agency operations into a contiguous and significant banking market for the Company.  Also, this acquisition provided the Company with a larger platform for leveraging insurance services throughout the Company's bank branch network.  The deal value was $2.2 million and the transaction was completed on January 1, 2016 with the Company paying $700,000 and issuing 79,012 shares of its common stock, which had a value of approximately $1.5 million. In connection with the acquisition, the Company also paid $1.1 million to purchase the office space previously leased by Bankingport.

 

This acquisition has been accounted for using the purchase method of accounting for business combinations, and accordingly, the assets and liabilities of Bankingport were recorded based on estimates of fair values as of January 1, 2016.  In connection with is transaction, the Company recorded $1.7 million in goodwill, which is non-deductible for tax purposes, and $0.7 million in other amoritzable intangible assets.