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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

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 Salin acquisition is detailed in the following table.

Assets						Liabilities
Cash and due from banks		$	152,745			Deposits
Investment securities, available for sale			54,319			Non-interest bearing		$	188,744
						NOW accounts		207,567
Loans						Savings and money market			274,504
Commercial			352,798			Certificates of deposit			70,529
Residential mortgage			131,008			Total deposits			741,344
Consumer			85,112
Total loans			568,918
						Borrowings		70,495
Premises and equipment, net			20,425			Subordinated debentures			18,376
FRB and FHLB stock			3,571			Interest payable			826
Goodwill			31,358			Other liabilities			8,759
Core deposit intangible			19,818
Interest receivable			2,488
Other assets			112,880
						Total liabilities assumed		$	839,800
Total assets purchased		$	966,522
Common shares issued		$	102,722
Cash paid			24,000
Total purchase price		$	126,722

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 March 26, 2019. Final valuation estimates have not yet been determined for acquired loans as of December 31, 2019. 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		$	22,672
Contractual cash flows not expected to be collected (nonaccretable differences)			6,694
Expected cash flows at acquisition			15,978
Interest component of expected cash flows (accretable discount)			735
Fair value of acquired loans accounted for under ASC 310-30		$	15,243

Pro Forma Result of Comparable Prior Reporting Period

The following schedule includes pro-forma results for the periods ended December 31, 2019, 2018 and 2017 as if the Salin, Wolverine and Lafayette acquisitions had occurred as of the beginning of the comparable prior reporting periods.

		Years Ended December 31
		2019				2018				2017
Summary of Operations:
Net Interest Income		$	168,693			$	157,194			$	153,376
Provision for Loan Losses			2,276				3,706				3,438
Net Interest Income after Provision for Loan Losses			166,417				153,488				149,938
Non-interest Income			43,472				39,918				42,456
Non-interest Expense			134,446				124,944				138,752
Income before Income Taxes			75,443				68,462				53,642
Income Tax Expense			13,246				10,216				15,978
Net Income		$	62,197			$	58,246			$	37,664
Basic Earnings per Share		$	1.43			$	1.52			$	1.09
Diluted Earnings per Share		$	1.43			$	1.51			$	1.08

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

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

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

(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.

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