Business Combination and Asset Purchase (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized

The following table summarizes the consideration paid for Bank of Geneva and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.

Fair Value of Consideration Transferred
	(In Thousands)
Cash	$	8,465
Common Shares (1,830,000 shares)		70,437
Total	$	78,902

Recognized amounts of identifiable assets acquired and liabilities assumed

Assets
Cash and cash equivalents	$	6,376
Securities - available-for-sale		17,494
Other securities, at cost		2,347
Loans, net		257,183
Premises and equipment		2,538
Goodwill		43,266
Other assets		7,176
Total Assets Purchased	$	336,380

Liabilities
Deposits
Noninterest bearing	$	37,822
Interest bearing		168,312
Total deposits		206,134
Federal Home Loan Bank (FHLB) advances		48,196
Accrued expenses and other liabilities		3,148
Total Liabilities Assumed	$	257,478

Summary of Carrying Amount of Loans

The carrying amount of those loans is included in loans, net on the balance sheet at September 30, 2019. The amounts of loans at September 30, 2019 are as follows:

	2019
	(In Thousands)
Balance - January 1, 2019
Commercial	$	4,094
Consumer RE		231
Consumer		71
Carrying amount, net of fair value adjustment of $2,118	$	2,278

Balance - September 30, 2019
Commercial	$	110
Consumer RE		55
Consumer		-
Carrying amount, net of fair value adjustment of $63	$	102

Summary of Loans Acquired and Contractually Required Payments Receivable

Loans acquired during 2019 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

	(In Thousands)
Contractually required payments receivable at acquisition
Commercial	$	4,215
Consumer RE		261
Consumer		94
Total required payments receivable	$	4,570

Cash flows expected to be collected at acquisition	$	2,788

Basis in acquired loans at acquisition	$	4,396

Summary of Changes in Accretable Yield or Income Expected to be Collected

Changes in accretable yield, or income expected to be collected, are as follows:

	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
	(In Thousands)			(In Thousands)
Beginning Balance	$	2,329		$	2,544
Additions		-			6
Accretion		(112	)		(2,316	)
Reclassification from nonaccretable difference		34			2,019
Disposals		(6	)		(8	)
Ending Balance	$	2,245		$	2,245

Schedule of Pro-forma Results

The following schedule includes pro-forma results for the three and nine months ended September 30, 2019 and 2018 as if the Bank of Geneva acquisitions had occurred as of the beginning of the comparable prior reporting period.

	(in thousands of dollars, except per share data)				(in thousands of dollars, except per share data)
	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Summary of Operations
Net Interest Income - Before Provision for Loan Losses	$	12,900	$	13,198	$	40,211	$	40,916
Provision for Loan Losses		247		77		410		474
Net Interest Income After Provision for Loan Losses		12,653		13,121		39,801		40,442
Noninterest Income		3,161		2,858		8,837		8,585
Noninterest Expense		10,585		9,810		30,562		28,529
Income Before Income Taxes		5,229		6,169		18,076		20,498
Income Taxes		935		946		3,380		3,686
Net Income	$	4,294	$	5,223	$	14,696	$	16,812
Basic and Diluted Earnings Per Share	$	0.38	$	0.47	$	1.32	$	1.51

Schedule of Future Amortization of Core Deposit Intangible Assets

Future amortization of core deposit intangible assets is as follows:

	(In Thousands)		(In Thousands)		(In Thousands)
	Custar		Geneva		Total
2019	$	167	$	560	$	727
2020		161		560		721
2021		-		560		560
2022		-		560		560
2023		-		560		560
2024		-		560		560
2025		-		560		560
	$	328	$	3,920	$	4,248