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Acquisition

6 Months Ended

Jun. 30, 2025

Acquisition

Acquisition

Note 2 – Acquisition

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Completed Acquisitions

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On December 6, 2024, the Company completed its purchase of five Illinois branch locations in the southeast Chicago metropolitan statistical area from First Merchants Bank (“FRME”), the wholly owned subsidiary of First Merchants Corporation.  This acquisition brought increased scale as the Company expanded its current branch network in the Chicago market.  At closing, the Company recorded $24.8 million of assets, including $7.1 million of loans and $3.9 million of premises and equipment, and $268.0 million of deposits, net of fair value adjustments.

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The Company recorded the estimate of fair value based on initial valuations available at December 6, 2024. Estimated fair values are subject to adjustment for up to one year after December 6, 2024. Based on current valuations, $13.3 million of core deposit intangible was recorded. Goodwill of $6.8 million was ultimately recorded from the branch purchase transaction. None of the $6.8 million of goodwill recorded is expected to be deductible for income tax purposes.

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The following table provides the purchase price allocation as of the December 6, 2024, branch purchase transaction with FRME, including the assets acquired and liabilities assumed at their estimated fair values as of that date, as recorded by the Company.

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​	​	​	​
First Merchants Transaction Summary
As of Date of Transaction
​	​	​	​
​	​	December 6, 2024
Assets	​	​	​
Cash and due from banks	​	$	419
Loans, net of purchase accounting adjustments	​	​	7,149
Premises and equipment	​	​	3,934
Core deposit intangible	​	​	13,254
Other assets	​	​	19
Total assets	​	$	24,775
​	​	​	​
Liabilities	​	​	​
Noninterest bearing demand	​	$	26,497
Savings, NOW and money market	​	​	157,126
Time	​	​	84,344
Total deposits	​	​	267,967
Other liabilities	​	​	585
Total liabilities	​	​	268,552
​	​	​	​
Cash consideration received	​	​	(237,023)
Total liabilities assumed and cash consideration received for transaction	​	$	31,529
Goodwill	​	$	6,754

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Expenses related to the FRME branch transaction totaled $168,000 and $1.9 million through the six months ended June 30, 2025, and the year ended December 31, 2024, respectively. The expenses related to the transaction are reported within noninterest expense based on the line items impacted, which are primarily salaries and employee benefits, computer and data processing, legal fees, and other expense in the Consolidated Statements of Income.

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All acquired loans are considered non-PCD as none of the loans met the definition of a purchase credit deteriorated loan.

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X

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479907/805-20-50-5

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 805
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/805/tableOfContent

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- References

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