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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2017

Pro Forma Result of Comparable Prior Reporting Period

The following schedule includes pro-forma results for the three months ended March 31, 2017 and 2016 as if the CNB, LaPorte Bancorp and Kosciusko acquisitions had occurred as of the beginning of the comparable prior reporting periods.

		Three Months Ended
		March 31				March 31
		2017				2016
Summary of Operations:
Net Interest Income		$	25,568			$	25,497
Provision for Loan Losses			330				532
Net Interest Income after Provision for Loan Losses			25,238			$	24,965
Non-interest Income			7,559				8,473
Non-Interest Expense			21,521				24,908
Income before Income Taxes			11,276				8,530
Income Tax Expense			3,052				2,385
Net Income			8,224				6,145
Net Income Available to Common Shareholders		$	8,224			$	6,103
Basic Earnings Per Share		$	0.37			$	0.34
Diluted Earnings Per Share		$	0.37			$	0.34

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.

ASSETS
Cash and due from banks		$	154,849
Investment securities, available for sale			23,779
Commercial			153,750
Residential mortgage			42,603
Consumer			16,801
Mortgage Warehousing			99,752
Total loans			312,906
Premises and equipment, net			6,022
FHLB stock			4,029
Goodwill			20,993
Core deposit intangible			2,514
Interest receivable			844
Cash value of life insurance			15,267
Other assets			8,334
Total assets purchased		$	549,537
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			87,605
Total deposits			371,372
Borrowings			64,793
Interest payable			178
Subordinated debt			4,504
Other liabilities			10,056
Total liabilities assumed		$	450,903

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.

Contractually required principal and interest at acquisition		$	12,545
Contractual cash flows not expected to be collected (nonaccretable differences)			4,492
Expected cash flows at acquisition			8,053
Interest component of expected cash flows (accretable discount)			1,258
Fair value of acquired loans accounted for under ASC 310-30		$	6,795

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, available for sale			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

Central National Bank & Trust [Member]

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on management’s preliminary valuation of the fair value of the 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 CNB acquisition is allocated as follows:

ASSETS
Cash and due from banks		$	27,860
Investment securities, available for sale			16,393
Commercial			2,267
Residential mortgage			6,624
Consumer			1,579
Total loans			10,470
Premises and equipment, net			444
FHLB stock			50
Goodwill			609
Core deposit intangible			190
Interest receivable			154
Other assets			49
Total assets purchased		$	56,219
Cash paid			5,311
Total estimated purchase price		$	5,311

LIABILITIES
Deposits
Non-interest bearing		$	24,079
NOW accounts			9,038
Savings and money market			13,829
Certificates of deposits			3,342
Total deposits			50,288
Borrowings			459
Interest payable			7
Other liabilities			154
Total liabilities assumed		$	50,908

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)
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- Definition

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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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