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Acquisition of UpState New York Bancorp, Inc. and USNY Bank (Tables) | 9 Months Ended
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Sep. 30, 2020
Acquisition of UpState New York Bancorp, Inc. and USNY Bank. [Abstract] |
Summary of Purchase |
(Dollars in Thousands, Except Per Share Data) |  |  |  |  |
Purchase Price Consideration in Common Stock
UpState New York Bancorp, Inc. common shares settled for stock |  | 1,987,206 |  |  |
Exchange Ratio |  | 0.9390 |  |  |
Norwood Financial Corp shares issued |  | 1,865,738 |  |  |
Value assigned to each Norwood Financial Corp common share | $ | 24.30 |  |  |
Purchase price assigned to UpState New York Bancorp, Inc. common shares |  |  |  | $ | 45,337
exchanged for Norwood Financial Corp shares |  |  |  |  |
Purchase Price Consideration - Cash for Common Stock |  |  |  |  |
UpState New York Bancorp, Inc. shares exchanged for cash, excluding fractional shares |  | 220,794 |  |  |
Purchase price paid to each UpState New York Bancorp, Inc. common share exchanged for cash | $ | 33.33 |  |  |
Purchase price assigned to UpState New York Bancorp, Inc. common shares exchanged for cash |  |  |  | $ | 7,359
Purchase price additional cash consideration per share |  |  |  |  | 1,479
Purchase price consideration - Cash-in-lieu of Fractional Shares |  |  |  |  | 6
Total Purchase Price |  |  |  | $ | 54,181
Net Assets Acquired: |  |  |  |  |
UpState New York Bancorp, Inc. shareholders' equity | $ | 44,803 |  |  |
UpState New York Bancorp, Inc. goodwill and intangibles |  | - |  |  |
Total tangible equity |  | 44,803 |  |  |
Adjustments to reflect assets acquired at fair value: |  |  |  |  |
Investments |  | (112) |  |  |
Loans |  |  |  |  |
Interest rate |  | 3,982 |  |  |
General credit |  | (10,529) |  |  |
Specific credit - non-amortizing |  | (5,213) |  |  |
Specific credit - amortizing |  | (1,724) |  |  |
Core deposit intangible |  | 409 |  |  |
Deferred loan fees |  | (812) |  |  |
Premises and equipment |  | (1,211) |  |  |
Allowance for loan and lease losses |  | 5,982 |  |  |
Deferred tax assets |  | 2,526 |  |  |
Other |  | (48) |  |  |
Adjustments to reflect liabilities acquired at fair value: |  |  |  |  |
Time deposits |  | (2,754) |  |  |
Net assets acquired |  |  |  |  | 35,299
Goodwill resulting from merger |  |  |  | $ | 18,882
Schedule of Business Acquisitions, by Acquisition |
(In Thousands) |  |  |  |  |
Total purchase price |  |  |  | $ | 54,181
Net assets acquired: |  |  |  |  |
Cash | $ | 24,037 |  |  |
Securities available for sale |  | 13,836 |  |  |
Loans |  | 405,221 |  |  |
Premises and equipment, net |  | 4,318 |  |  |
Regulatory stock |  | 2,487 |  |  |
Accrued interest receivable |  | 1,426 |  |  |
Core deposit intangible |  | 564 |  |  |
Other assets |  | 4,194 |  |  |
Deposits |  | (414,113) |  |  |
Accrued interest payable |  | (175) |  |  |
Other liabilities |  | (6,496) |  |  |
Total identifiable net assets acquired |  |  |  |  | 35,299
Goodwill resulting from UpState New York Bancorp, Inc. Merger |  |  |  | $ | 18,882
Future Amortization Expense |
(In thousands) |  |
2020 | $ | 37
2021 |  | 71
2022 |  | 63
2023 |  | 56
2024 |  | 48
After five years |  | 134
| $ | 409
Proforma | The following table presents financial information for the former UpState included in the Consolidated Statements of Income from the date of acquisition through September 30, 2020:
|  | Actual From
|  | Acquisition Date
|  | Through
|  | September 30,2020
|  | (in thousands)
Net interest income after provision for loan losses | $ | 3,522
Noninterest income | $ | 151
The following table presents pro forma information for the nine and three-month periods ended September 30, 2020 and 2019, as if the acquisition of UpState had occurred on January 1, 2019. This table has been prepared for comparative purposes only, and is not indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results:
|  | Pro Forma |  |  | Pro Forma
|  | Nine Months Ended September 30, |  |  | Three Months Ended September 30,
(In Thousands, Except Per Share Data) |  | 2020 |  | 2019 |  |  | 2020 |  | 2019
Net interest income after provision for loan losses |  | $ | 38,632 |  | $ | 38,658 |  |  | $ | 13,480 |  | $ | 13,236
Noninterest income |  |  | 5,443 |  |  | 5,704 |  |  |  | 2,072 |  |  | 2,089
Net income |  |  | 14,434 |  |  | 14,759 |  |  |  | 5,304 |  |  | 5,287
Pro forma earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1.80 |  | $ | 1.84 |  |  | $ | 0.66 |  | $ | 0.66
Diluted |  | $ | 1.79 |  | $ | 1.83 |  |  | $ | 0.66 |  | $ | 0.66

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