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Acquisition of New Windsor Bancorp, Inc. (Tables)
3 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Purchase price consideration in common stock
The following table summarizes the consideration paid for New Windsor and the fair value of assets acquired and liabilities assumed as of the acquisition date:
        
Purchase Price Consideration in Common Stock
New Windsor shares outstanding
 
1,003,703

Shares paid cash consideration
 
150,555

Cash consideration (per New Windsor share)
 
$
30.00

Cash portion of purchase price
 
$
4,519,995

New Windsor shares outstanding
 
1,003,703

Shares paid stock consideration
 
853,148

Exchange ratio
 
1.10

Total ACNB shares issued
 
938,360

ACNB’s share price for purposes of calculation
 
$
30.50

Equity portion of purchase price
 
$
28,619,980

Cost of shares owned by buyer
 
$
150,000

Total consideration paid
 
$
33,289,975

    
Allocation of Purchase Price
 
In thousands
 
 
Total Purchase Price
 
 
 
$
33,290

 
 
 
 
 
Fair Value of Assets Acquired
 
 
 
 
Cash and cash equivalents
 
10,964

 
 
Investment securities
 
21,624

 
 
Loans held for sale
 
1,463

 
 
Loans
 
263,450

 
 
Restricted stock
 
486

 
 
Premises and equipment
 
8,624

 
 
Core deposit intangible asset
 
2,418

 
 
Other assets
 
10,792

 
 
Total assets
 
319,821

 
 
 
 
 
 
 
Fair Value of Liabilities Assumed
 
 
 
 
Non-interest bearing deposits
 
80,006

 
 
Interest bearing deposits
 
213,327

 
 
Subordinated debt
 
4,688

 
 
Other liabilities
 
1,782

 
 
Total liabilities
 
299,803

 
 
 
 
 
 
 
Net Assets Acquired
 
 
 
20,018

Goodwill Recorded in Acquisition
 
 
 
$
13,272


Fair value adjustments
The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. The credit adjustment on purchased credit impaired loans is derived in accordance with ASC 310-30 and represents the portion of the loan balances that has been deemed uncollectible based on the Corporation’s expectations of future cash flows for each respective loan.
In thousands
 
 
Gross amortized cost basis at July 1, 2017
 
$
272,646

Interest rate fair value adjustment on pools of homogeneous loans
 
(731
)
Credit fair value adjustment on pools of homogeneous loans
 
(4,501
)
Credit fair value adjustment on purchased credit impaired loans
 
(3,964
)
Fair value of acquired loans at July 1, 2017
 
$
263,450

Acquired purchased credit impaired loans receivable
The following table presents the acquired purchased credit impaired loans receivable at the Acquisition Date:
In thousands
 
 
Contractual principal and interest at acquisition
 
$
13,439

Nonaccretable difference
 
(5,651
)
Expected cash flows at acquisition
 
7,788

Accretable yield
 
(1,458
)
Fair value of purchased impaired loans
 
$
6,330