3. Acquisitions

On July 1, 2011, First Defiance acquired PDI, an insurance agency headquartered in Maumee and Oregon, Ohio, for a cash purchase price of $4.8 million and future consideration to be paid in cash in 2012, 2013, and 2014. As of December 31, 2014, management has reported goodwill of approximately $4.0 million and identifiable intangible assets of $689,000 consisting of a customer relationship intangible of $482,000 and a non-compete intangible of $207,000. The transaction included a contingent payable with a maximum cash payout of $822,800, of which $157,000, $596,000 and $70,000 was paid in 2014, 2013 and 2012, respectively. $20,000 was expensed in 2014 with the final payout. The Company accounted for the transaction under the acquisition method of accounting which requires purchased assets and assumed liabilities to be recorded at their respective acquisition date fair value. Disclosure of pro forma results of this acquisition is not material to the Company’s consolidated financial statements.