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Business Combinations
 12 Months Ended
Dec. 31, 2013
Business Combinations [Abstract]  
Business Combinations

Note 2: Business Combinations

On August 10, 2012 , Bar Harbor Bank & Trust (the "Bank"), a wholly-owned first tier operating subsidiary of Bar Harbor Bankshares, completed its acquisition of the operations of the Border Trust Company ("Border Trust"), a state chartered bank headquartered in Augusta, Maine, by acquiring certain assets and assuming certain liabilities, including all deposits for a net purchase price of $133. This transaction represented a strategic extension of the Company's franchise with three branch locations located in Kennebec and Sagadahoc counties.

The Company has determined that the acquisition of the net assets of Border Trust constituted a business combination as defined by the FASB ASC Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed were recorded at their fair values. Fair values were determined based on the requirements of FASB ASC Topic 820, Fair Value Measurements. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. These fair value estimates are subject to change for up to one year after the closing date of the transaction as additional information relative to closing date fair values becomes available. In addition, the tax treatment is complex and subject to interpretations that may result in future adjustments of deferred taxes as of the acquisition date.

The results of Border Trust's operations are included in the Consolidated Statements of Income from the date of acquisition. In connection with this transaction, the consideration paid, the assets acquired, and the liabilities assumed were recorded at fair value on the date of acquisition, as summarized in the following table.

Fair value of total consideration paid:      
Cash consideration paid at closing to Border Trust $ 133  
 
Fair value of identifiable assets acquired:      
Cash and cash equivalents $ 1,330  
Securities   3,537  
Federal Home Loan Bank Common stock   770  
Loans   33,606  
Premises and equipment   563  
Core deposit intangible   783  
Other assets   540  
Total identifiable assets acquired   41,129  
 
Fair value of liabilities assumed:      
Deposits   38,520  
Borrowings   3,776  
Other liabilities   477  
Total liabilities assumed   42,773  
 
Fair value of net identifiable assets (liabilities) acquired   (1,644 )
 
Goodwill resulting from transaction $ 1,777  

 

Goodwill of $1,777 was recorded after adjusting for the fair value of net identifiable assets acquired. The goodwill from the acquisition represents the inherent long-term value anticipated from the synergies and business opportunities expected to be achieved as a result of the transaction. The core deposit intangible asset is being amortized over its estimated life, currently expected to be eight and one-half years.