Acquisition and Divestiture Costs

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisition and Divestiture Costs

Acquisition and Divestiture Costs

On October 16, 2015, the Company completed its acquisition of SBM, the parent company of The Bank of Maine. The Company incurred certain one-time costs related to the acquisition that would not have otherwise been incurred had the acquisition not occurred. Total one-time acquisition-related costs for the year ended December 31, 2015 were $10.4 million and has been presented separately on the Company's consolidated statements of income within acquisition and divestiture costs.

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.

For the year ended December 31, 2013, the Company incurred certain one-time costs related to the divestiture of its Franklin County branches and the acquisition of 14 branches from the Bank of America, N.A. in 2012. Total costs incurred for the year ended December 31, 2013 were $374,000 and has been presented separately on the Company's consolidated statements of income within acquisition and divestiture costs.

The following table outlines the types of one-time costs incurred related to the (i) SBM acquisition completed on October 16, 2015 and (ii) the costs incurred in 2013 related to the acquisition of 14 branches from Bank of America, N.A. and costs associated with the divestiture of its five Franklin County branches in 2013. There were no one-time acquisition or divestiture costs incurred in 2014.

	For The Year Ended December 31,
	2015		2014		2013
Salaries and employee benefits(1)	$	3,240	$	—	$	—
Furniture, equipment and data processing	1,531		—		78
Net occupancy	1,237		—		3
Consulting and professional fees(2)	2,453		—		134
Other expenses(3)	1,954		—		159
Total acquisition and divestiture costs	$	10,415	$	—	$	374

(1) Includes the costs associated with pre-existing change-in-control agreements in place at the time of the SBM acquisition and employee termination costs, including severance.

(2) Includes the cost of a negotiated non-compete arrangement entered into in connection with the SBM acquisition of $400,000 in 2015.

(3) Other expenses include marketing and insurance costs, certain contract termination costs, various printing and mailing costs associated with various customer communications, and travel-related costs associated with the integration of the two companies in 2015.

Also in connection with the SBM acquisition, the Company incurred certain equity issuance costs totaling $612,000 related to the registration of additional shares of the Company's common stock. These costs have been accounted for as a reduction to shareholders' equity and have been presented as such within the Company's consolidated statements of changes in shareholders' equity.