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Business Combination & Asset Purchase
 12 Months Ended
Dec. 31, 2013
Business Combinations [Abstract]  
Business Combination & Asset Purchase

Note 2 – Business Combination & Asset Purchase

On December 13, 2013, the Bank completed its purchase of a branch office in Custar, Ohio from Croghan Colonial Bank. Deposits of approximately $29.5 million and loans of $11.4 million were included in the purchase. The aggregate acquisition cost of the Custar office was $1.2 million, which was all paid in cash. The new office is located within the Bank’s current market area, expanding our presence in Wood County.

The following table summarizes the estimated values of the assets acquired and the liabilities assumed:

 

($ in Thousands)       

Cash

    $ 204   

Loans

      11,436   

Accrued Interest on Loans

      31   

Premises and Equipment

      271   

Core Deposit Intangible Asset

      1,171   

Other Assets

      1   
  

 

 

  

Total Assets Acquired

    $ 13,114   
  

 

 

  

Deposits

    $ 29,466   

Accrued Interest on Deposits

      17   

Other Liabilities

      17   
  

 

 

  

Total Liabilities Assumed

    $ 29,500   
  

 

 

  

Net Liabilities Assumed

    $ (16,386 ) 
  

 

 

  

The Company also recognized core deposit intangible assets of $2.26 million with the purchase of offices. $1.17 million was recognized with the purchase of the Custar office on December 13, 2013 and $1.09 million with the Hicksville office on July 9, 2010. These are being amortized over an estimated remaining economic useful life of the deposits of 7 years on a straight line basis. In connection with a December 31, 2007 Knisely acquisition, the Company recognized a core deposit intangible asset of $1.1 million, which is being amortized on a straight line basis over 7 years, which represents the estimated remaining economic useful life of the deposits.

The estimated amortization expense for the years ended December 31, 2013, 2012 and 2011 was $319, $312 and $312 thousand, respectively.

Amortization expense of the core deposit intangible assets remaining is as follows:

 

     (In Thousands)  
     Knisley      Hicksville      Custar      Total  

2014

    $ 157       $ 156       $ 167       $ 480   

2015

      —           155         167         322   

2016

      —           155         167         322   

2017

      —           77         167         244   

2018

      —           —           167         167   

Thereafter

      —           —           330         330   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 157       $ 543       $ 1,165       $ 1,865