XML 50 R36.htm IDEA: XBRL DOCUMENT v3.22.4
Acquisitions and Intangible Assets
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [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 added 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. There were no acquisitions in 2021 or 2022.
The following table summarizes the consideration paid in 2020 for the Belfast 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 interest23,138,000 
   Premises and equipment696,000 
   Prepaid expenses10,000 
   Core deposit intangible262,000 
   Goodwill841,000 
Liabilities
   Deposits19,261,000
   Other liabilities7,000
   Consideration paid6,060,000

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 has been amortized on a straight-line basis over ten years. Annual amortization expense for each of 2022, 2021 and 2020 was $43,000, and as of year-end 2022 is fully amortized. The core deposit intangible related to the Belfast branch acquisition is being amortized on a straight-line basis over ten years. Annual amortization expense for 2022 and 2021 was $26,000, and the amortization expense for each year until fully amortized (presently expected to be 2031) will be $26,000. The Belfast core deposit intangible is being amortized on a straight-line basis as the Company does not expect significant run off in the core deposits.