XML 42 R29.htm IDEA: XBRL DOCUMENT
v3.21.2

Branch Acquisition | 9 Months Ended
--- | ---
Sep. 30, 2021
Branch Acquisition |
Branch Acquisition | 21. Branch Aquisition On May 21, 2021, AmeriServ Financial Bank, the Company’s wholly owned banking subsidiary, completed its previously announced acquisition from Citizen’s Neighborhood Bank (CNB), an operating division of Riverview Bank, the branch and deposit customers in Meyersdale, Pennsylvania and the deposit customers in Somerset, Pennsylvania. On this date, the Meyersdale branch continued in operation under the AmeriServ name while the Somerset branch customers were transferred to the full service AmeriServ office at 108 West Main Street. Pursuant with the terms of the purchase and assumption agreement, the related deposits, totaling approximately $42 million on the closing date, were acquired for a 3.71% deposit premium, or $1.6 million. ​ The acquisition was accounted for under the acquisition method of accounting as prescribed by FASB Accounting Standards Codification 805, Business Combinations, as amended. Accordingly, the acquisition’s results of operations have been included in the Company’s results of operations as of the date of acquisition. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based on their estimated fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. ​ In accordance with the purchase and assumption agreement, the purchase price of the real property (i.e. premise and equipment) was equal to the net book value as of the date of acquisition. The Company determined that the net book value was a reasonable proxy of fair value based on review of appraisals on record at Riverview Bank. The Company engaged a consultant to assist in the valuation of the core deposit intangible asset and fair value of certificates of deposit. Core deposits include demand deposits, interest-bearing checking, money market, and savings accounts. The core deposit intangible value assigned to the acquired deposits was determined using the income approach and represents the future economic benefit of the potential cost savings from acquiring those core deposits compared to the cost of obtaining generally higher cost FHLB borrowings. Certificates of deposit (CDs) are not considered to be core deposits as they typically are less stable and generally do not have an all-in favorable funding advantage to alternative funding sources. The fair value of CDs represents the present value of the certificates’ expected contractual payments discounted by market rates for similar CDs. ​ The following table reflects the basis of assets acquired and liabilities assumed from Riverview Bank as of the acquisition date (in thousands). ​
​ | ​ | ​ | ​ | ​
Consideration received | ​ | ​ |  | ​
Cash received | ​ | ​ | $ | 40,154
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
Fair value of assets acquired | ​ | ​ | ​ | ​
Cash and cash equivalents | $ | 258 | ​ | ​
Loans | ​ | 36 | ​ | ​
Premises and equipment | ​ | 158 |  | ​
Core deposit intangible | ​ | 177 | ​ | ​
Other assets | ​ | 19 | ​ | ​
​ | ​ | ​ | ​ | 648
Fair value of liabilities assumed | ​ | ​ |  | ​
Deposits | ​ | (42,432) |  | ​
Other liabilities | ​ | (37) |  | ​
​ | ​ | ​ |  | (42,469)
​ | ​ | ​ | ​ | ​
Total fair value of identifiable net assets | ​ | ​ | ​ | (41,821)
​ | ​ | ​ | ​ | ​
Goodwill resulting from acquisition | ​ | ​ | $ | 1,667
​ The Company recorded goodwill and other intangibles associated with the acquisition of the Meyersdale and Somerset branches from Riverview Bank totaling $1.8 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during the nine months ended September 30, 2021. The carrying amount of the goodwill at September 30, 2021 related to the Riverview branch acquisition was $1.7 million. ​ Identifiable intangible assets are amortized to their estimated residual values over their expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the nine months ended September 30, 2021, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible which is being amortized on an accelerated basis over a ten-year useful life. The gross carrying amount of the core deposit intangible at September 30, 2021 was $166,000 with $11,000 accumulated amortization as of that date. ​ The amount of revenue of the acquired business since the acquisition date, and the pro-forma results of operations, are not material to the financial statements. ​ As of September 30, 2021, the current year and estimated future amortization expense for the core deposit intangible associated with the Riverview branch acquisition is as follows (in thousands): ​
​ | ​ | ​
2021 | $ | 19
2022 | ​ | 30
2023 |  | 27
2024 |  | 24
2025 |  | 21
After five years | ​ | 56
​ | $ | 177
​

X
- 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
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration