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Acquisition of Frederick County Bancorp, Inc. (Tables) | 9 Months Ended
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Sep. 30, 2020
Business Combinations [Abstract] |
Purchase price consideration in common stock | The following table summarizes the consideration paid for FCBI and the fair value of assets acquired and liabilities assumed as of the acquisition date: Purchase Price Consideration in Common Stock
FCBI shares outstanding |  | 1,601,764 |
Shares paid in cash for fractional shares |  | 150.88 |
Cash consideration (per share) |  | $ | 36.43 |
Cash portion of purchase price (cash payout of stock options and cash in lieu of fractional shares) |  | $ | 100,798 |
FCBI shares outstanding |  | 1,601,764 |
Shares paid stock consideration |  | 1,601,613 |
Exchange ratio |  | 0.9900 |
Total ACNB shares issued |  | 1,585,597 |
ACNB’s share price for purposes of calculation |  | $ | 36.34 |
Equity portion of purchase price |  | $ | 57,620,595 |
Cost of shares owned by buyer |  | $ | 187,200 |
Total consideration paid |  | $ | 57,908,593 |
Allocation of Purchase Price |  | In thousands |  |
Total Purchase Price |  |  |  | $ | 57,909 |
Fair Value of Assets Acquired |  |  |  |
Cash and cash equivalents |  | 35,262 |  |  |
Investment securities |  | 22,167 |  |  |
Loans held for sale |  | 4,050 |  |  |
Loans |  | 329,312 |  |  |
Restricted stock |  | 1,141 |  |  |
Premises and equipment |  | 10,959 |  |  |
Core deposit intangible asset |  | 3,560 |  |  |
Other assets |  | 14,446 |  |  |
Total assets |  | 420,897 |  |  |
Fair Value of Liabilities Assumed |  |  |  |
Non-interest bearing deposits |  | 103,492 |  |  |
Interest bearing deposits |  | 270,566 |  |  |
Subordinated debt |  | 6,000 |  |  |
Long term borrowings |  | 3,450 |  |  |
Other liabilities |  | 2,008 |  |  |
Total liabilities |  | 385,516 |  |  |
Net Assets Acquired |  |  |  | 35,381 |
Goodwill Recorded in Acquisition |  |  |  | $ | 22,528 |
Fair value adjustments | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Corporation’s expectations of future cash flows for each respective loan.
In thousands |  |
Gross amortized cost basis at January 11, 2020 |  | $ | 339,577 |
Interest rate fair value adjustment on pools of homogeneous loans |  | (2,632) |
Credit fair value adjustment on pools of homogeneous loans |  | (5,931) |
Credit fair value adjustment on purchased credit impaired loans |  | (1,702) |
Fair value of acquired loans at January 11, 2020 |  | $ | 329,312 |
Acquired purchased credit impaired loans receivable | The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date:
In thousands |  |
Contractual principal and interest at acquisition |  | $ | 4,289 |
Nonaccretable difference |  | (2,361) |
Expected cash flows at acquisition |  | 1,928 |
Accretable yield |  | (354) |
Fair value of purchased impaired loans |  | $ | 1,574 |
Pro forma results | The following table presents certain pro forma information as if FCBI had been acquired on September 30, 2019. These results combine the historical results of the Corporation in the Corporation’s Consolidated Statements of Income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on September 30, 2019. In particular, no adjustments have been made to eliminate the amount of FCBI’s provision for loan losses that would not have been necessary had the acquired loans been recorded at fair value as of September 30, 2019. The Corporation expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below:
In thousands |  | For the Nine Months Ended September 30, 2019
Total revenues (net interest income plus non-interest income) |  | $ | 72,281 |
Net Income |  | 22,138 |

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