Branch Acquisition and Divestiture

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Branch Acquisition and Divestiture

Branch Acquisition and Divestiture

On October 4, 2013, the Bank completed its divestiture of its Franklin County branches, including the Farmington, Kingfield, Phillips, Rangeley and Stratton branches. The sales transaction included branch deposits and borrowings of $85.9 million, business loans and certain consumer loans of $46.0 million and real estate and equipment of $602,000. The sales price represents a 3.5% premium on deposits, par value on the loan portfolio and book value for the real estate. The Company recognized a pre-tax gain on the sale of $2.7 million in non-interest income on the consolidated statements of income in 2013.

On October 26, 2012, the Bank acquired 15 full-service branches from Bank of America, National Association, pursuant to the terms and conditions of the Purchase and Assumption Agreement, dated April 23, 2012. The purchase price was $12.0 million less the premium received upon the sale of one of these branches of $3.3 million as agreed with the U.S. Department of Justice.

Direct costs related to the Branch Acquisition and Divestiture for the years ended December 31, 2013 and 2012 were $374,000 and $2.3 million, respectively. There were no branch acquisition or divestiture expenses for the year ended December 31, 2014.