Acquisition of Shore Community Bank On November 8, 2019, the Company completed its acquisition of 100 percent of the shares of common stock of Shore Community Bank ("Shore"), which merged with and into the Bank (the Shore Merger). The former shareholders of Shore received total consideration of $54.3 million , which was comprised of 1,509,275 shares of common stock of the Company with a market value of $29.2 million and cash of $25.1 million , of which $925,000 was cash paid in exchange for unexercised outstanding stock options. The Shore Merger was accounted for under the acquisition method of accounting, and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at preliminary estimated fair values as of the Shore Merger date. The excess of the fair value of the consideration paid over the preliminary net fair value of Shore's assets and liabilities resulted in the recognition of goodwill of $23.2 million . Shores results of operations have been included in the Companys Consolidated Statements of Income since November 8, 2019. The assets acquired and liabilities assumed in the merger were recorded at their estimated fair values based on managements best estimates, using information available at the date of the merger, including the use of third party valuation specialists. The fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the Shore Merger. The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 29,175 Cash payment 24,233 Cash payment for unexercised outstanding stock options 925 Total consideration paid $ 54,333 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 32,599 Investment securities available for sale 26,440 Loans 205,833 Premises and equipment, net 4,433 Core deposit intangible asset 1,467 Bank-owned life insurance 7,250 Right-of-use assets 3,226 Accrued interest receivable 778 Other real estate owned 605 Other assets 2,518 Deposits (249,836 ) Lease liability (3,226 ) Other liabilities (948 ) Total identifiable assets and liabilities, net $ 31,139 Goodwill recorded from Shore merger $ 23,194 Accounting Standards Codification (ASC) Topic 805-10 provides that if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report, in its financial statements, provisional amounts for the items for which the accounting is incomplete. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date and may recognize additional assets or liabilities to reflect new information obtained from facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period may not exceed one year from the acquisition date. Investments were recorded at fair value, utilizing quoted market prices on nationally recognized exchanges (Level 1) or by using Level 2 inputs. For Level 2 securities, the Company obtained fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the securitys terms and conditions, among other things. Loans acquired in the Shore Merger were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310. The fair values of loans acquired were estimated, utilizing cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses of approximately $3.6 million and estimated prepayments. Projected cash flows were then discounted to present value, utilizing a risk-adjusted market rate for similar loans that management determined market participants would likely use. At the Shore Merger date, the Company recorded $201.3 million of loans without evidence of credit quality deterioration and $4.6 million of loans with evidence of credit quality deterioration. The following table summarizes the composition of the loans acquired and recorded at fair value: At November 8, 2019 (Dollars in thousands) Loans acquired with no credit quality deterioration Loans acquired with credit quality deterioration Total Commercial Construction $ 9,733 $  $ 9,733 Commercial real estate 135,482 4,071 139,553 Commercial business 12,027  12,027 Residential real estate 36,849 500 37,349 Consumer 7,171  7,171 Total loans $ 201,262 $ 4,571 $ 205,833 The following is a summary of the loans acquired with evidence of deteriorated credit quality in the Shore Merger as of the date of the closing of the merger: (Dollars in thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 7,584 Contractual cash flows not expected to be collected (non-accretable difference) 2,355 Expected cash flows at acquisition 5,229 Interest component of expected cash flows (accretable difference) 658 Fair value of acquired loans $ 4,571 Bank-owned life insurance was recorded at the cash surrender value of the insurance policies, which approximates the redemption value of the policies. The Company recorded a core deposit intangible asset related to a value ascribed to demand, interest checking, money market and savings account, referred to as core deposits, acquired as part of the acquisition. The value assigned to the acquired core deposits represents the future economic benefit of the potential cost savings from acquiring the core deposits, net of operating expenses and including ancillary fee income, compared to the cost of obtaining alternative funds from available market sources. Management used estimates including the expected attrition rates of depository accounts, future interest rate levels, and the cost of servicing various depository products. The core deposit intangible asset totaled $1.5 million and is being amortized over its estimated useful life of approximately 10 years , using an accelerated method. The following table presents the projected amortization of the core deposit intangible asset for each period: (Dollars in thousands) Amount Year 2020 $ 262 2021 236 2022 209 2023 182 2024 156 Thereafter 378 Total $ 1,423 The fair values of deposit liabilities with no stated maturities, such as checking, money market and savings accounts, were assumed to equal the carrying value amounts since these deposits are payable on demand. The fair values of certificates of deposit represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit. Direct costs related to the Shore Merger were expensed as incurred. For the year ended December 31, 2019, the Company incurred $1.7 million of expenses for termination of contracts, legal and financial advisory fees, severance and other integration related expenses, which have been separately stated as merger-related expenses in the Companys Consolidated Statements of Income. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Shore operations included in the Companys Consolidated Statements of Income for the three months ended March 31, 2020 under the column "Shore Three Months Ended 3/31/2020." In addition, the table presents unaudited condensed pro forma financial information assuming that the Shore Merger had been completed as of January 1, 2019. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the Shore Merger occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma financial information does not reflect managements estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Shores operations. (Dollars in thousands) Shore Three Months Ended 3/31/2020 Actual for the Three Months Ended 3/31/2020 Pro Forma for the Three Months Ended 3/31/2019 Net interest income $ 2,065 $ 12,936 $ 13,736 Non-interest income 113 2,456 2,044 Non-interest expenses 979 9,793 9,624 Income taxes 369 1,283 1,632 Net income 830 3,421 4,224