Acquisitions On October 29, 2018, Peoples entered into an Agreement and Plan of Merger (The "First Prestonsburg Merger Agreement") with First Prestonsburg Bancshares Inc. ("First Prestonsburg"), that calls for First Prestonsburg to merge into Peoples (the "Merger"). First Prestonsburg is the parent company of First Commonwealth Bank of Prestonsburg, Inc. ("First Commonwealth"), which operates eight full service branches located in eastern Kentucky, with an additional branch to open by the end of 2018. First Commonwealth will merge into Peoples Bank following the merger of First Prestonsburg into Peoples. The merger transactions are expected to close during the second quarter of 2019, subject to the satisfaction of customary closing conditions, including receipt of applicable regulatory approvals and the approval of the shareholders of First Prestonsburg. As of September 30, 2018, First Prestonsburg had, on a consolidated basis, approximately $310 million in total assets, which included approximately $139 million in total loans, and approximately $244 million in total deposits. Under the terms of the First Prestonsburg Merger Agreement, shareholders of First Prestonsburg will receive 12.512 Peoples' common shares for each share of First Prestonsburg common stock. In addition, immediately prior to the closing of the Merger, First Prestonsburg will pay a special aggregate cash distribution of $11.275 million to its shareholders based upon the twenty day volume-weighted average closing price of Peoples' common stock through October 26, 2018. The stock consideration plus the special dividend have a combined transaction value of $45.4 million to the holders of First Prestonsburg's common stock. On April 13, 2018, Peoples completed its acquisition of ASB for total consideration of $41.5 million , which reflected the conversion of each of the 1,979,034 outstanding ASB common shares into $20.00 in cash or 0.592 in Peoples' common shares. ASB merged into Peoples, and ASB's wholly-owned subsidiary, American Savings Bank, fsb, which operated seven full-service branches in southern Ohio and northern Kentucky, merged into Peoples Bank. Per the applicable accounting guidance for business combinations, the acquisition date fair values of the assets purchased, liabilities assumed and related identifiable intangible assets are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values becomes available. The following table provides the preliminary purchase price calculation as of the date of acquisition for the ASB acquisition, and the assets acquired and liabilities assumed at their estimated fair values. (Dollars in thousands, except per share data) ASB Purchase Price Common shares electing cash consideration 31,763 Cash purchase price per share $ 20.00 Cash consideration $ 635 Common shares electing stock consideration 1,947,271 Number of common shares of Peoples issued for each common share of acquired company 0.592 Price per Peoples common share, based on closing date $ 35.48 Common share consideration $ 40,898 Cash in lieu of fractional common shares of Peoples $ 2 Total consideration $ 41,535 Net Assets at Fair Value Assets Total cash and cash equivalents $ 5,332 Available-for-sale investment securities 18,155 Held-to-maturity investment securities 649 Other investment securities 1,596 Total investment securities 20,400 Loans, net of deferred fees and costs 236,628 Loans held for sale 2,539 Net loans 239,167 Bank premises and equipment, net of accumulated depreciation 3,320 Bank owned life insurance 4,803 Other intangible assets 2,639 Other assets 3,481 Total assets $ 279,142 Liabilities Deposits: Non-interest-bearing $ 29,487 Interest-bearing 169,142 Total deposits 198,629 Short-term borrowings 54,824 Accrued expenses and other liabilities 2,716 Total liabilities $ 256,169 Net assets $ 22,973 Goodwill $ 18,562 The estimated fair values presented in the above table reflect additional information that was obtained during the three months ended September 30, 2018, which resulted in changes to certain fair value estimates made as of the date of acquisition. Adjustments to acquisition date estimated fair values are recorded during the period in which they occur and, as a result, previously recorded results have changed. After considering the additional information, the estimated fair value of loans decreased $ 481,000 ; bank premises and equipment, net of accumulated depreciation, increased $355,000 ; other assets increased $34,000 ; and accrued expenses and other liabilities increased $158,000 , in each case from balances reported as of June 30, 2018. These revised fair value estimates resulted in a net increase to goodwill of $250,000 from $18.3 million reported as of June 30, 2018, to $18.6 million which was recognized in the September 30, 2018 Consolidated Balance Sheet. Acquired loans are reported net of the unamortized fair value adjustment. The following table details the preliminary fair value adjustment for acquired loans as of the acquisition date: (Dollars in thousands, except per share data) ASB Nonimpaired Loans Contractual cash flows $ 342,087 Nonaccretable difference 59,967 Expected cash flows 282,120 Accretable yield 54,029 Fair value $ 228,091 Credit Impaired Loans Contractual cash flows $ 19,031 Nonaccretable difference 5,908 Expected cash flows 13,123 Accretable yield 2,047 Fair value $ 11,076 Peoples recorded non-interest expense related to acquisitions of $ 675,000 and $6.9 million for the three and nine months ended September 30, 2018 , respectively. Total non-interest income declined due to losses of $ 203,000 associated with the ASB acquisition. Salaries and employee benefit costs contained $ 466,000 and $2.4 million , for the three and nine months ended September 30, 2018 , respectively, related to change in control agreements, retention and severance bonuses, and regular payroll and taxes after conversion. Professional fees contained $ 31,000 and $ 742,000 for the three and nine months ended September 30, 2018 , respectively. Data processing expenses contained none and $59,000 for the three and nine months ended September 30, 2018. Marketing expense included $16,000 and $107,000 for the three and nine months ended September 30, 2018, respectively, and other non-interest expense contained $ 162,000 and $3.6 million for the three and nine months ended September 30, 2018 , respectively.