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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Pro Forma Result of Comparable Prior Reporting Period

The following schedule includes pro-forma results for the periods ended December 31, 2017, 2016 and 2015 as if the Wolverine, Lafayette, CNB, LaPorte Bancorp, Kosciusko and Peoples acquisitions had occurred as of the beginning of the comparable prior reporting periods.

		December 31				December 31				December 31
		2017				2016				2015
Summary of Operations:
Net Interest Income		$	125,442			$	115,860				119,732
Provision for loan losses			(12	)			1,082				4,027
Net Interest Income after Provision for Loan Losses			125,454				114,778				115,705
Non-interest Income			33,959				43,330				37,976
Non-interest Expense			109,605				119,522				112,309
Income before Income Taxes			49,808				38,586				41,372
Income Tax Expense			16,204				12,072				10,764
Net Income			33,604				26,514				30,608
Net Income Available to Common Shareholders		$	33,604			$	26,472				30,483
Basic Earnings Per Share		$	1.46			$	1.32			$	1.93
Diluted Earnings Per Share		$	1.45			$	1.32			$	1.88

Wolverine 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 estimates and assumptions that are subject to change, the final purchase price for the Wolverine acquisition is allocated as follows:

ASSETS
Cash and due from banks		$	44,450
Investment securities, available for sale			—
Commercial			276,167
Residential mortgage			30,603
Consumer			3,897
Total loans			310,667
Premises and equipment, net			2,941
FHLB stock			2,700
Goodwill			26,827
Core deposit intangible			2,024
Interest receivable			584
Other assets			3,897
Total assets purchased		$	394,090
Common shares issued		$	62,111
Cash paid			31,662
Total estimated purchase price		$	93,773
LIABILITIES
Deposits
Non-interest bearing		$	25,221
NOW accounts			8,026
Savings and money market			129,044
Certificates of deposits			94,688
Total deposits			256,979
Borrowings			36,970
Interest payable			214
Other liabilities			6,154
Total liabilities assumed		$	300,317

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 October 17, 2017.

Contractually required principal and interest at acquisition		$	21,912
Contractual cash flows not expected to be collected (nonaccretable differences)			1,832
Expected cash flows at acquisition			20,080
Interest component of expected cash flows (accretable discount)			2,267
Fair value of acquired loans accounted for under ASC 310-30		$	17,813

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 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

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 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.

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

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, available for sale			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

Lafayette Community Bancorp [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 Lafayette acquisition is detailed in the following table.

ASSETS
Cash and due from banks		$	24,846
Investment securities, available for sale			6
Commercial			116,258
Residential mortgage			12,761
Consumer			5,280
Total loans			134,299
Premises and equipment, net			7,818
FHLB stock			395
Goodwill			15,408
Core deposit intangible			2,085
Interest receivable			338
Other assets			1,649
Total assets purchased		$	186,844
Common shares issued		$	30,044	(1)
Cash paid			4,421
Total estimated purchase price		$	34,465
LIABILITIES
Deposits
Non-interest bearing		$	34,990
NOW accounts			30,174
Savings and money market			53,663
Certificates of deposits			32,520
Total deposits			151,347
Borrowings			—
Interest payable			42
Other liabilities			990
Total liabilities assumed		$	152,379

⁽¹⁾  This includes $955,000 of common shares previously held by Horizon.

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 September 1, 2017.

Contractually required principal and interest at acquisition		$	6,128
Contractual cash flows not expected to be collected (nonaccretable differences)			1,326
Expected cash flows at acquisition			4,802
Interest component of expected cash flows (accretable discount)			933
Fair value of acquired loans accounted for under ASC 310-30		$	3,869

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- 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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+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
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