Business Combination & Asset Purchase

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Business Combination & Asset Purchase

Note 2 – Business Combination & Asset Purchase

On December 13, 2013, the Bank completed its purchase of a branch office in Custar, Ohio from Croghan Colonial Bank. Deposits of approximately $29.5 million and loans of $11.4 million were included in the purchase. The aggregate acquisition cost of the Custar office was $1.2 million, which was all paid in cash. The new office is located within the Bank’s current market area, expanding our presence in Wood County.

The following table summarizes the estimated values of the assets acquired and the liabilities assumed:

($ in Thousands)
Cash	$	204
Loans		11,436
Accrued Interest on Loans		31
Premises and Equipment		271
Core Deposit Intangible Asset		1,171
Other Assets		1
Total Assets Acquired	$	13,114
Deposits	$	29,466
Accrued Interest on Deposits		17
Other Liabilities		17
Total Liabilities Assumed	$	29,500
Net Liabilities Assumed	$	(16,386	)

The Company also recognized core deposit intangible assets of $2.26 million with the purchase of offices. $1.17 million was recognized with the purchase of the Custar office on December 13, 2013 and $1.09 million with the Hicksville office on July 9, 2010. These are being amortized over an estimated remaining economic useful life of the deposits of 7 years on a straight line basis. In connection with a December 31, 2007 Knisely acquisition, the Company recognized a core deposit intangible asset of $1.1 million, which was fully amortized during 2014. The core deposit intangible is included in other assets on the consolidated balance sheets.

The estimated amortization expense for the years ended December 31, 2014, 2013 and 2012 was $480, $319 and $312 thousand, respectively.

Amortization expense of the core deposit intangible assets remaining is as follows:

	Hicksville		Custar		Total
2015	$	155	$	167	$	322
2016		155		167		322
2017		78		167		245
2018		—		167		167
2019		—		167		167
Thereafter		—		162		162
Total	$	388	$	997	$	1,385