BRANCH ACQUISITION

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

BRANCH ACQUISITION

BRANCH ACQUISITION

On July 10, 2013, the Bank entered into an agreement with Bank of America to acquire six branch offices in Auburn, Cortland, Ithaca and Seneca Falls, New York.  Under the terms of the agreement, the Bank purchased the related branch premises and certain performing loans, and assumed the related deposits.  The transaction was completed on November 23, 2013.  The assets acquired and deposits assumed in the transaction were recorded at their estimated fair values as follows:

Cash, net	$	170,904
Loans	1,240
Bank premises and equipment	4,081
Core deposit intangible asset	2,155
Other assets	350
Total assets acquired	$	178,730
Deposits assumed	$	177,749
Time deposit premium	263
Other liabilities	718
Total liabilities assumed	$	178,730

The transaction was accounted for using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values on the acquisition date.  Fair values are preliminary and in certain cases are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to fair values becomes available.

The operating results of the acquired branch offices included in the Corporation’s consolidated statement of income for the year ended December 31, 2013 reflect only the amounts from the acquisition date through December 31, 2013.

The core deposit intangible asset of $2.2 million will be amortized on an accelerated basis over a period of approximately seven years.  The time deposit premium of $263 thousand will be accreted over the estimated remaining life of the related deposits as a reduction to interest expense.

Negative goodwill of $470 thousand was recorded as a gain from bargain purchase and was calculated as the purchase discount after adjusting for the fair value of net assets acquired.