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Asset Purchase
9 Months Ended
Sep. 30, 2011
Asset Purchase [Abstract] 
ASSET PURCHASE

NOTE 3 ASSET PURCHASE

On July 9, 2010, the Bank completed its purchase of a branch office in Hicksville, Ohio from First Place Bank. Deposits of close to $28 million and loans of $14 million were included in the purchase. The new office is located within the Bank’s current market area, shortening the distance between offices in the Ohio and Indiana market area. The following table summarizes the estimated values of the assets acquired and the liabilities assumed:

 

         
    (In Thousands)  

Cash

   $ 114  

Loans, Net of Discount

     13,792  

Accrued Interest on Loans

     64  

Premises and Equipment

     1,803  

Core Deposit Intangible

     1,087  

Other Assets

     11  
   

 

 

  

Total Assets Acquired

   $ 16,871  
   

 

 

  

Deposits

   $ 27,749  

Accrued Interest on Deposits

     13  

Other Liabilities

     10  
   

 

 

  

Total Liabilities Assumed

     27,772  
   

 

 

  

Net Liabilities Assumed

   $ 10,901  
   

 

 

  

In connection with the purchase, the Bank recognized an addition to core deposit intangible by $1.09 million, which is being amortized on a straight line basis over the estimated remaining economic life of the deposits of 7 years.

On December 31, 2007 the Bank acquired 100% of the outstanding shares of Knisely Bank. $1.1 million was recognized as a core deposit intangible, which is being amortized on a straight line basis over the estimated remaining economic life of the deposits of 7 years.

The estimated amortization expense for the years ended December 31, 2010, 2009 and 2008 was $235, $157 and $157 thousand respectively. Amortization of these core deposit intangibles is scheduled to be as follows:

 

                         
    (In Thousands)  
    Knisley     Hicksville     Total  

2011

   $ 157     $ 155     $ 312  

2012

     157       155       312  

2013

     157       155       312  

2014

     157       155       312  

2015

     —         155       155  

Thereafter

     0       235       235  
   

 

 

    

 

 

    

 

 

  

Total Core Deposit Intangible

     628.00       1,010.00     $ 1,638