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Merger (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Estimated Amortization Expense

Estimated amortization expense for each of the next five years and thereafter is as follows:

	MSRs		Core deposit intangibles		Total
2022	$	40	$	407	$	447
2023		161		1,579		1,740
2024		160		1,488		1,648
2025		160		1,312		1,472
2026		159		1,193		1,352
Thereafter		2,399		2,496		4,895
	$	3,079	$	8,475	$	11,554

As of September 30, 2022, the current year and estimated future amortization expense for the core deposit intangible is as follows:

	Core deposit intangibles
2022	$	427
2023		739
2024		684
2025		604
2026		523
Thereafter		1,449
	$	4,426

Summary of Financial Information

The following table presents financial information for the former Comunibanc Corp. included in the Consolidated Statements of Operations from the date of acquisition through September 30, 2022.

	Actual From Acquisition Date Through September 30, 2022
	(in thousands)
Net interest income after provision for loan losses	$	1,638
Noninterest income		158
Net income		426

Summary of Pro Forma Information

The following table presents pro forma information for the three- and nine-month periods ended September 30, 2022 and 2021 as if the acquisition of Comunibanc Corp. had occurred on January 1, 2021. This table has been prepared for comparative purposes only and is not indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition.

	Pro Formas				Pro Formas
	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Net interest income after provision for loan losses	$	30,405	$	26,891	$	82,100	$	78,452
Noninterest income		5,734		6,693		19,387		25,486
Net income		11,176		10,100		26,914		31,015
Pro forma earnings per share:
Basic	$	0.74	$	0.63	$	1.80	$	1.88
Diluted	$	0.74	$	0.63	$	1.80	$	1.88

Summary of Estimated Fair Values of the Assets Acquired and Liabilities

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for Comunibanc Corp. Core deposit intangibles will be amortized over periods of between ten years using an accelerated method. Goodwill will not be amortized, but instead will be evaluated for impairment.

Cash paid				$	24,968
Common Shares issued (984,723 shares)					21,122
Total				$	46,090


Net assets acquired:
Cash and due from financial institutions	$	3,098
Securities available for sale		120,399
Time deposits		742
Loans, net		169,202
Other securities		1,553
Premises and equipment		6,073
Accrued interest receivable		670
Core deposit intangible		4,426
Bank owned life insurance		5,918
Other assets		3,767
Noninterest-bearing deposits		(122,642	)
Interest-bearing deposits		(148,552	)
Other borrowings		(21,706	)
Other liabilities		(1,659	)
					21,289
Goodwill resulting from Comunibanc Corp. acquisition				$	24,801

Summary of Acquired and Accounted for in Accordance With ASC 310-30

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

	At September 30, 2022
	Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)
	(In Thousands)
Outstanding balance	$	4,421
Carrying amount		3,774