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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2016

Peoples Bancorp Inc [Member]

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 September 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								Nine Months Ended
		September 30				September 30				September 30				September 30
		2016				2015				2016				2015
Summary of Operations:
Net Interest Income		$	24,410			$	19,776			$	65,053			$	60,466
Provision for Loan Losses			455				300				1,219				2,880
Net Interest Income after Provision for Loan Losses			23,955				19,476				63,834				57,586
Non-interest Income			10,056				8,400				27,789				24,545
Non-Interest Expense			24,820				22,235				66,122				61,192
Income before Income Taxes			9,191				5,641				25,501				20,939
Income Tax Expense			2,589				1,353				7,192				5,164
Net Income			6,602				4,288				18,309				15,776
Net Income Available to Common Shareholders		$	6,602			$	4,257			$	18,267			$	15,682
Basic Earnings Per Share		$	0.31			$	0.24			$	0.95			$	0.91
Diluted Earnings Per Share		$	0.30			$	0.24			$	0.94			$	0.89

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. The final valuation numbers were received in September 2016 which changed the goodwill estimate from $6.9 million to $6.4 million.

ASSETS
Cash and due from banks		$	38,950
Investment securities, held to maturity			1,191
Commercial			70,006
Residential mortgage			26,244
Consumer			6,319
Total loans			102,569
Premises and equipment, net			1,466
FRB and FHLB stock			582
Goodwill			6,443
Core deposit intangible			526
Interest receivable			636
Cash value of life insurance			2,745
Other assets			765
Total assets purchased		$	155,873
Common shares issued		$	14,470
Cash paid			8,513
Total estimated purchase price		$	22,983

LIABILITIES
Deposits
Non-interest bearing		$	27,871
NOW accounts			35,213
Savings and money market			26,953
Certificates of deposits			32,771
Total deposits			122,808
Borrowings			9,038
Interest payable			55
Other liabilities			989
Total liabilities assumed		$	132,890

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 June 1, 2016.

Contractually required principal and interest at acquisition		$	2,682
Contractual cash flows not expected to be collected (nonaccretable differences)			25
Expected cash flows at acquisition			2,657
Interest component of expected cash flows (accretable discount)			634
Fair value of acquired loans accounted for under ASC 310-30		$	2,023

LaPorte Bancorp 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 LaPorte Bancorp acquisition is detailed in the following table. Final estimates of fair value on the date of acquisition have not been received yet. 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		$	154,849
Investment securities, held to maturity			23,779
Commercial			154,223
Residential mortgage			42,603
Consumer			16,801
Mortgage Warehousing			99,752
Total loans			313,379
Premises and equipment, net			6,022
FHLB stock			4,029
Goodwill			18,265
Core deposit intangible			2,514
Interest receivable			844
Cash value of life insurance			15,267
Other assets			7,822
Total assets purchased		$	546,770
Common shares issued		$	60,306
Cash paid			38,328
Total estimated purchase price		$	98,634

LIABILITIES
Deposits
Non-interest bearing		$	66,733
NOW accounts			99,346
Savings and money market			117,688
Certificates of deposits			86,929
Total deposits			370,696
Borrowings			64,793
Interest payable			178
Subordinated debt			4,504
Other liabilities			7,965
Total liabilities assumed		$	448,136

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

The following table details an estimate of the acquired loans that are accounted for in accordance with ASC 310-30 as of July 18, 2016. Final valuation estimates have not yet been determined for acquired loans as of September 30, 2016. If information becomes available which would indicate adjustments to the purchase price allocation, such adjustments would be made prospectively.

Contractually required principal and interest at acquisition		$	12,551
Contractual cash flows not expected to be collected (nonaccretable differences)			3,411
Expected cash flows at acquisition			9,140
Interest component of expected cash flows (accretable discount)			1,736
Fair value of acquired loans accounted for under ASC 310-30		$	7,404

Pro Forma Result of Comparable Prior Reporting Period

 The following schedule includes pro forma results for the periods ended September 30, 2016 and 2015 as if the LaPorte Bancorp and The LaPorte Savings Bank acquisitions had occurred as of the beginning of the comparable prior reporting periods.

		Three Months Ended								Nine Months Ended
		September 30				September 30				September 30				September 30
		2016				2015				2016				2015
Summary of Operations:
Net Interest Income		$	25,044			$	23,981			$	74,512			$	67,243
Provision for Loan Losses			455				400				1,219				3,075
Net Interest Income after Provision for Loan Losses			24,589				23,581				73,293				64,168
Non-interest Income			11,056				9,099				33,052				24,767
Non-Interest Expense			31,611				25,541				80,937				64,956
Income before Income Taxes			4,034				7,139				25,408				23,979
Income Tax Expense			1,855				1,670				8,070				5,932
Net Income			2,179				5,469				17,338				18,047
Net Income Available to Common Shareholders		$	2,179			$	5,438			$	17,296			$	17,953
Basic Earnings Per Share		$	0.10			$	0.31			$	0.90			$	1.19
Diluted Earnings Per Share		$	0.10			$	0.30			$	0.89			$	1.15

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(2)-(3)
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

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X

- Definition

Tabular disclosure of the reconciliation of contractual cash flows to the carrying amount relating to certain loans acquired in a transfer.

+ References

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- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

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