Note 3 - Acquisition

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Business Combination Disclosure [Text Block]

(

3

) Acquisitions

Effective

December 19, 2018,

Bancorp executed a definitive Share Purchase Agreement (“agreement”), pursuant to which Bancorp will acquire all of the outstanding common stock of privately held King Bancorp, Inc. (“King”).   King, headquartered in Louisville, is the holding company for King Southern Bank, which operates

five

branches –

three

in the greater Louisville area and

two

in Nelson County, approximately

60

miles southeast of Louisville.

Under the terms of the Agreement, the Company will acquire all of King’s outstanding common stock in an all-cash transaction, resulting in a total cash payment to King’s existing shareholders of approximately

$28

million.  The Company will fund the cash payment through existing resources on-hand.

The acquisition is expected to close during

second

quarter of

2019,

subject to customary regulatory approval and completion of closing conditions. As of

September 30, 2018,

King had approximately

$195

million in assets,

$168

million in loans,

$126

million in deposits and

$16

million in tangible common equity. 

In

2013,

Bancorp completed the acquisition of

100%

of the outstanding shares of THE BANCorp, Inc. (“Oldham”), parent company of THE BANK – Oldham County, Inc. The transaction was accounted for using acquisition accounting and, accordingly, assets acquired, liabilities assumed and consideration transferred were recorded at estimated fair value on the acquisition date. Bancorp recorded a core deposit intangible of

$2.5

million which is being amortized using methods that anticipate the life of the underlying deposits to which the intangible is attributable. At

December 31, 2018,

the unamortized core deposit intangible was

$1.1

million. See Note

7

for details on the core deposit intangible.