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Business Combination and Asset Purchase (Tables) | 6 Months Ended
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Jun. 30, 2022
Business Acquisition [Line Items] |
Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized | The following table summarizes the consideration paid for Ossian State Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.
Fair Value of Consideration Transferred |  |  |  |
|  | (In Thousands) |
Cash |  | $ | 20,001 |
Total |  | $ | 20,001 |
Recognized amounts of identifiable assets acquired and liabilities assumed |  |  |  |
Assets |  |  |  |
Cash and cash equivalents |  | $ | 20,229 |
Interest-bearing time deposits |  |  | 20,226 |
Securities - available-for-sale |  |  | 30,243 |
Other securities, at cost |  |  | 281 |
Loans, net |  |  | 52,403 |
Premises and equipment |  |  | 494 |
Goodwill |  |  | 7,874 |
Other assets |  |  | 5,308 |
Total Assets Purchased |  | $ | 137,058 |
Liabilities |  |  |  |
Deposits |  |  |  |
Noninterest bearing |  | $ | 34,509 |
Interest bearing |  |  | 81,535 |
Total deposits |  |  | 116,044 |
Accrued expenses and other liabilities |  |  | 1,013 |
Total Liabilities Assumed |  | $ | 117,057 |
Summary of Carrying Amount of Loans | The carrying amount of those loans is included in loans, net on the balance sheet at June 30, 2022. The amounts of loans at April 30, 2021, December 31, 2021 and June 30, 2022 are as follows:
|  | (In Thousands) |
Balance - April 30, 2021 |  |  |  |
Consumer Real Estate |  | $ | 24 |
Agricultural Real Estate |  |  | 981 |
Commercial Real Estate |  |  | 315 |
Commercial & Industrial |  |  | 314 |
Carrying amount, net of fair value adjustment of $325 |  | $ | 1,309 |
Balance - December 31, 2021 |  |  |  |
Consumer Real Estate |  | $ | 22 |
Agricultural Real Estate |  |  | - |
Commercial Real Estate |  |  | 222 |
Commercial & Industrial |  |  | 285 |
Carrying amount, net of fair value adjustment of $321 |  | $ | 208 |
Balance - June 30, 2022 |  |  |  |
Consumer Real Estate |  | $ | 20 |
Agricultural Real Estate |  |  | - |
Commercial Real Estate |  |  | 90 |
Commercial & Industrial |  |  | 65 |
Carrying amount, net of fair value adjustment of $83 |  | $ | 92 |
Summary of Loans Acquired and Contractually Required Payments Receivable | Loans acquired during 2021 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 |  |  |  |
Consumer Real Estate |  | $ | 28 |
Agricultural Real Estate |  |  | 1,142 |
Commercial Real Estate |  |  | 527 |
Commercial & Industrial |  |  | 360 |
Total required payments receivable |  | $ | 2,057 |
Cash flows expected to be collected at acquisition |  | $ | 1,309 |
Basis in acquired loans at acquisition |  | $ | 1,634 |
Summary of Changes in Accretable Yield or Income Expected to be Collected | Changes in accretable yield, or income expected to be collected, for the three and six months ended are as follows:
|  | Three Months Ended June 30, 2022 |  |  | Three Months Ended June 30, 2021 |  |  | Six Months Ended June 30, 2022 |  |  | Six Months Ended June 30, 2021 |
|  | (In Thousands) |  |  | (In Thousands) |  |  | (In Thousands) |  |  | (In Thousands) |
Beginning Balance |  | $ | 1,097 |  |  | $ | 1,542 |  |  | $ | 1,198 |  |  | $ | 1,653 |
Additions |  |  | 3 |  |  |  | 4 |  |  |  | 8 |  |  |  | 5 |
Accretion |  |  | (106 | ) |  |  | (107 | ) |  |  | (212 | ) |  |  | (215 | )
Reclassification from nonaccretable difference |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (4 | )
Ending Balance |  | $ | 994 |  |  | $ | 1,439 |  |  | $ | 994 |  |  | $ | 1,439 |
Schedule of Pro-forma Results | The following schedule includes pro-forma results for the three and six months ended June 30, 2022 and 2021 as if the Ossian State Bank and Perpetual Federal Savings Bank 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 |  |  | Six Months Ended |
|  | June 30, 2022 |  |  | June 30, 2021 |  |  | June 30, 2022 |  |  | June 30, 2021 |
Summary of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Interest Income - Before Provision for Loan Losses |  | $ | 21,864 |  |  | $ | 19,645 |  |  | $ | 41,647 |  |  | $ | 38,895 |
Provision for Loan Losses |  |  | 1,628 |  |  |  | 641 |  |  |  | 2,208 |  |  |  | 2,342 |
Net Interest Income After Provision for Loan Losses |  |  | 20,236 |  |  |  | 19,004 |  |  |  | 39,439 |  |  |  | 36,553 |
Noninterest Income |  |  | 3,319 |  |  |  | 4,141 |  |  |  | 7,662 |  |  |  | 9,367 |
Noninterest Expense |  |  | 13,234 |  |  |  | 13,214 |  |  |  | 26,727 |  |  |  | 27,269 |
Income Before Income Taxes |  |  | 10,321 |  |  |  | 9,931 |  |  |  | 20,374 |  |  |  | 18,651 |
Income Taxes |  |  | 2,050 |  |  |  | 2,046 |  |  |  | 4,001 |  |  |  | 3,668 |
Net Income |  | $ | 8,271 |  |  | $ | 7,885 |  |  | $ | 16,373 |  |  | $ | 14,983 |
Basic and Diluted Earnings Per Share |  | $ | 0.63 |  |  | $ | 0.61 |  |  | $ | 1.25 |  |  | $ | 1.15 |
Schedule of Annual Amortization of Core Deposit Intangible Assets | Annual amortization of core deposit intangible assets is as follows:
|  | (In Thousands) |
|  | Geneva |  |  | Ossian |  |  | Perpetual |  |  | Total |
2022 |  | $ | 560 |  |  | $ | 140 |  |  | $ | 95 |  |  | $ | 795 |
2023 |  |  | 560 |  |  |  | 140 |  |  |  | 95 |  |  |  | 795 |
2024 |  |  | 560 |  |  |  | 140 |  |  |  | 95 |  |  |  | 795 |
2025 |  |  | 560 |  |  |  | 140 |  |  |  | 95 |  |  |  | 795 |
2026 |  |  | - |  |  |  | 140 |  |  |  | 95 |  |  |  | 235 |
Thereafter |  |  | - |  |  |  | 187 |  |  |  | 169 |  |  |  | 356 |
|  | $ | 2,240 |  |  | $ | 887 |  |  | $ | 644 |  |  |  | 3,771 |
Customer Lists [Member] |
Business Acquisition [Line Items] |
Schedule of Annual Amortization of Core Deposit Intangible Assets | Annual amortization expense of customer list intangible is as follows:
|  | (In Thousands) |
|  | Adams County Financial Resources |
2022 |  | $ | 123 |
2023 |  |  | 123 |
2024 |  |  | 123 |
2025 |  |  | 123 |
2026 |  |  | 123 |
Thereafter |  |  | 47 |
|  | $ | 662 |
Perpetual Federal Savings Bank [Member] |
Business Acquisition [Line Items] |
Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized | The following table summarizes the consideration paid for Perpetual Federal Savings Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.
Fair Value of Consideration Transferred |  |  |  |
|  | (In Thousands) |
Cash |  | $ | 59,234 |
Common Shares |  |  | 41,078 |
Total |  | $ | 100,312 |
Recognized amounts of identifiable assets acquired and liabilities assumed |  |  |  |
Assets |  |  |  |
Cash and cash equivalents |  | $ | 44,975 |
Federal funds sold |  |  | 1,672 |
Interest-bearing time deposits |  |  | 6,250 |
Other securities, at cost |  |  | 2,794 |
Loans, net |  |  | 334,661 |
Premises and equipment |  |  | 615 |
Goodwill |  |  | 25,220 |
Other assets |  |  | 3,975 |
Total Assets Purchased |  | $ | 420,162 |
Liabilities |  |  |  |
Deposits |  |  |  |
Noninterest bearing |  | $ | 2,018 |
Interest bearing |  |  | 309,090 |
Total deposits |  |  | 311,108 |
Federal Home Loan Bank (FHLB) advances |  |  | 6,218 |
Accrued expenses and other liabilities |  |  | 2,524 |
Total Liabilities Assumed |  | $ | 319,850 |
Summary of Carrying Amount of Loans | The carrying amount of those loans is included in loans, net on the balance sheet at June 30, 2022. The amounts of loans at October 1, 2021, December 31, 2021 and June 30, 2022 are as follows:
|  | (In Thousands) |
Balance - October 1, 2021 |  |  |  |
Consumer Real Estate |  | $ | 608 |
Agricultural Real Estate |  |  | 118 |
Commercial Real Estate |  |  | 234 |
Commercial & Industrial |  |  | 5 |
Carrying amount, net of fair value adjustment of $237 |  | $ | 728 |
Balance - December 31, 2021 |  |  |  |
Consumer Real Estate |  | $ | 581 |
Agricultural Real Estate |  |  | 114 |
Commercial Real Estate |  |  | 5 |
Commercial & Industrial |  |  | - |
Carrying amount, net of fair value adjustment of $190 |  | $ | 510 |
Balance - June 30, 2022 |  |  |  |
Consumer Real Estate |  | $ | 349 |
Agricultural Real Estate |  |  | 109 |
Commercial Real Estate |  |  | - |
Commercial & Industrial |  |  | - |
Carrying amount, net of fair value adjustment of $142 |  | $ | 316 |
Summary of Loans Acquired and Contractually Required Payments Receivable | Loans acquired during 2021 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 |  |  |  |
Consumer Real Estate |  | $ | 962 |
Agricultural Real Estate |  |  | 146 |
Commercial Real Estate |  |  | 293 |
Commercial & Industrial |  |  | 6 |
Total required payments receivable |  | $ | 1,407 |
Cash flows expected to be collected at acquisition |  | $ | 728 |
Basis in acquired loans at acquisition |  | $ | 965 |
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 June 30, 2022 |  |  | Three Months Ended June 30, 2021 |  |  | Six Months Ended June 30, 2022 |  |  | Six Months Ended June 30, 2021 |
|  | (In Thousands) |  |  | (In Thousands) |  |  | (In Thousands) |  |  | (In Thousands) |
Beginning Balance |  | $ | 5,004 |  |  | $ | - |  |  | $ | 5,262 |  |  | $ | - |
Additions |  |  | 33 |  |  |  | - |  |  |  | 97 |  |  |  | - |
Accretion |  |  | (327 | ) |  |  | - |  |  |  | (649 | ) |  |  | - |
Reclassification from nonaccretable difference |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Ending Balance |  | $ | 4,710 |  |  | $ | - |  |  | $ | 4,710 |  |  | $ | - |
Ossian Financial Services, Inc. [Member] |
Business Acquisition [Line Items] |
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 June 30, 2022 |  |  | Three Months Ended June 30, 2021 |  |  | Six Months Ended June 30, 2022 |  |  | Six Months Ended June 30, 2021 |
|  | (In Thousands) |  |  | (In Thousands) |  |  | (In Thousands) |  |  | (In Thousands) |
Beginning Balance |  | $ | 601 |  |  | $ | - |  |  | $ | 645 |  |  | $ | - |
Additions |  |  | - |  |  |  | 762 |  |  |  | - |  |  |  | 762 |
Accretion |  |  | (44 | ) |  |  | (29 | ) |  |  | (88 | ) |  |  | (29 | )
Reclassification from nonaccretable difference |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Disposals |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Ending Balance |  | $ | 557 |  |  | $ | 733 |  |  | $ | 557 |  |  | $ | 733 |

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