Acquisitions (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on management’s preliminary valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions that are subject to change, the final purchase price for the Peoples acquisition is allocated as follows:


ASSETS
Cash and due from banks	$	205,054
Investment securities, held to maturity		2,038
Commercial		67,435
Residential mortgage		137,331
Consumer		19,593

Total loans		224,359
Premises and equipment, net		5,524
FRB and FHLB stock		2,743
Goodwill		21,424
Core deposit intangible		4,394
Interest receivable		1,279
Cash value of life insurance		13,898
Other assets		4,364

Total assets purchased	$	485,077

Common shares issued	$	55,506
Cash paid		22,641

Total estimated purchase price	$	78,147


LIABILITIES
Deposits
Non-interest bearing	$	28,251
NOW accounts		65,771
Savings and money market		125,176
Certificates of deposits		131,889

Total deposits		351,087
Borrowings		48,884
Interest payable		21
Other liabilities		6,938

Total liabilities assumed	$	406,930

Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30

The following table details the acquired loans that are accounted for in accordance with ASC 310-30 as of July 1, 2015.


Contractually required principal and interest at acquisition	$	5,730
Contractual cash flows not expected to be collected (nonaccretable differences)		715

Expected cash flows at acquisition		5,015
Interest component of expected cash flows (accretable discount)		647

Fair value of acquired loans accounted for under ASC 310-30	$	4,368

Pro Forma Result of Comparable Prior Reporting Period

The following schedule includes pro forma results for the periods ended June 30, 2016 and 2015 as if the Peoples and Peoples FSB acquisitions had occurred as of the beginning of the comparable prior reporting period.


	Three Months Ended				Six Months Ended
	June 30		June 30		June 30		June 30
	2016		2015		2016		2015
Summary of Operations:
Net Interest Income	$	20,869	$	20,829	$	40,643	$	40,690
Provision for Loan Losses		232		1,936		764		2,580
Net Interest Income after Provision for Loan Losses		20,637		18,893		39,879		38,110
Non-interest Income		9,869		8,086		17,733		16,145
Non-Interest Expense		21,555		19,852		41,302		39,014
Income before Income Taxes		8,951		7,127		16,310		15,241
Income Tax Expense		2,625		1,779		4,603		3,791
Net Income		6,326		5,348		11,707		11,450
Net Income Available to Common Shareholders	$	6,326	$	5,317	$	11,665	$	11,387

Basic Earnings Per Share	$	0.52	$	0.46	$	0.97	$	0.99
Diluted Earnings Per Share	$	0.52	$	0.45	$	0.96	$	0.96

Kosciusko Financial Inc [Member]

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Kosciusko acquisition is detailed in the following table. Prior to the end of the one year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation prospectively. If any adjustments are made to the preliminary assumptions (provisional amounts), disclosures will be made in the notes to the financial statements of the amounts recorded in the current period earnings by line item that have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date.


ASSETS
Cash and due from banks	$	38,950
Investment securities, held to maturity		1,191
Commercial		67,310
Residential mortgage		26,244
Consumer		6,319

Total loans		99,873
Premises and equipment, net		1,466
FRB and FHLB stock		582
Goodwill		6,858
Core deposit intangible		1,867
Interest receivable		636
Cash value of life insurance		2,745
Other assets		1,245

Total assets purchased	$	155,413

Common shares issued	$	14,068
Cash paid		8,513

Total estimated purchase price	$	22,581


LIABILITIES
Deposits
Non-interest bearing	$	28,549
NOW accounts		35,213
Savings and money market		26,953
Certificates of deposits		32,771

Total deposits		123,486
Borrowings		8,303
Interest payable		55
Other liabilities		988

Total liabilities assumed	$	132,832