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Acquisitions and Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Business Combinations [Abstract] |
Acquisitions and Intangible Assets | Acquisitions and Intangible Assets On December 11, 2020, the Company acquired a branch at 1B Belmont Avenue, Belfast, Maine from Bangor Savings Bank. The acquisition adds to its existing book of business in Belfast and Waldo County. The Company intends to leverage having a physical presence in Belfast and the base of new customers to grow its loan and deposit share in the market. Under the terms of the acquisition, the Company acquired approximately $19,000,000 in deposits as well as $23,000,000 in loans. The following table summarizes the consideration paid for the branch and the allocation to the assets acquired and liabilities assumed based on estimates of fair value at the acquisition date:
Assets |
Cash | $ | 381,000 |
Loans & accrued interest | 23,138,000 |
Premises and equipment | 696,000 |
Prepaid expenses | 10,000 |
Core deposit intangible | 262,000 |
Goodwill | 841,000 |
Liabilities |
Deposits | $ | 19,261,000 |
Other liabilities | 7,000 |
The banking facilities were valued at a recent appraised value, which approximates fair value. The loans acquired were recorded at fair value at the time of acquisition. The estimated fair value of the loans acquired is equal to the carrying value. At time of acquisition, all the loans are expected to be collectible. The excess of the purchase price over the fair value of the assets acquired and liabilities assumed totaled $841,000 and was recorded as goodwill. The amount of goodwill that is expected to be deductible for income taxes purposes is $841,000. The fair value of intangible assets related to core deposit accounts assumed was $262,000. The core deposit intangible is subject to amortization over the estimated ten-year average life of the acquired core deposit base and will be evaluated for impairment periodically. The annual amortization expense of $26,000 will be included in other noninterest expense in the consolidated statements of income and comprehensive income and is deductible for tax purposes. As part of the branch acquisition, the Company entered into a lease agreement for land upon which the branch is situated. The Company recorded a right of use asset and lease liability for $511,000. One-time costs associated with the acquisition that were recognized by the Company and included in the consolidated statements of income and comprehensive income for 2020 were $310,000. The core deposit intangible related to the FNB Bankshares acquisition was fully amortized in 2015. The core deposit intangible related to the Rockland branch acquisition is being amortized on a straight-line basis over ten years. Annual amortization expense for each of 2020, 2019 and 2018 was $43,000, and the amortization expense for each year until fully amortized (presently expected to be 2022) will be $43,000. Core deposit intangible is being amortized on a straight-line basis as the Company does not expect significant run off in the core deposits.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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