Business Combinations (Tables)

3 Months Ended

Mar. 31, 2022

Estimated Fair Values of Assets Acquired and Liabilities Assumed

	Acquired			Fair Value			As Recorded by
(In thousands)	Book Value			Adjustments			Jefferson Bank
Assets
Cash and due from banks	$	82,473		$	—		$	82,473
Investment securities		184,959			(2,836	)		182,123
Loans		426,433			(7,924	)		418,509
Allowance for credit losses		(5,388	)		4,525			(863	)
Premises and equipment		5,522			3,508			9,030
Goodwill		14			28,597			28,611
Core deposit intangible		—			5,920			5,920
Bank owned life insurance		15,822						15,822
Right of use asset		—			717			717
Other assets		9,061			(1,340	)		7,721
Total assets acquired	$	718,896		$	31,167		$	750,063

Liabilities
Deposits	$	558,619		$	1,759		$	560,378
Securities sold under agreements to repurchase		35,523			—			35,523
FHLB advances		45,000			75			45,075
Lease liability		—			717			717
Other liabilities		2,209			(1,161	)		1,048
Total liabilities assumed		641,351			1,390			642,741
Net assets acquired	$	77,545		$	29,777		$	107,322

Consideration paid
Cash							$	15,150
Common stock								92,172
							$	107,322

Unaudited Pro Forma Condensed Combined Financial Information

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the Delta Merger taken place at the beginning of the period (dollars in thousands, except per share data):

	Three months ended March 31,
	2022		2021
Net interest income	$	44,200	$	40,966
Provision for loan losses		2,952		14,136
Non-interest income		21,088		18,528
Non-interest expense		40,575		39,653
Income before taxes		21,761		5,705
Income tax expense (benefit)		4,797		887
Net income (loss)	$	16,964	$	4,818

Earnings per share
Basic	$	0.88	$	0.28
Diluted		0.88		0.28

Basic weighted average shares o/s		19,295,860		17,299,927
Diluted weighted average shares o/s		19,358,457		17,352,947

LINCO Bancshares, Inc.

Business Acquisition [Line Items]

Estimated Fair Values of Assets Acquired and Liabilities Assumed

	Acquired			Fair Value			As Recorded by
(In thousands)	Book Value			Adjustments			Providence Bank
Assets
Cash and due from banks	$	130,561		$	—		$	130,561
Investment securities		119,234			264			119,498
Loans		838,377			(9,401	)		828,976
Allowance for credit losses		(8,656	)		6,583			(2,073	)
Other real estate owned		8,435			915			9,350
Premises and equipment		23,440			6,360			29,800
Goodwill		20,503			(15,054	)		5,449
Core deposit intangible		123			2,025			2,148
Right of use asset		—			794			794
Other assets		43,697			2,499			46,196
Total assets acquired	$	1,175,714		$	(5,015	)	$	1,170,699

Liabilities
Deposits	$	988,329		$	2,081		$	990,410
Securities sold under agreements to repurchase		—			—			—
FHLB advances		26,941			975			27,916
Other borrowings		—			—			—
Lease liability		—			794			794
Other liabilities		4,498			(610	)		3,888
Total liabilities assumed		1,019,768			3,240			1,023,008
Net assets acquired	$	155,946		$	(8,255	)	$	147,691

Consideration paid
Cash							$	103,500
Common stock								44,191
							$	147,691

Unaudited Pro Forma Condensed Combined Financial Information

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the LINCO acquisition taken place at the beginning of the period (dollars in thousands, except per share data):

	Three months ended
	March 31, 2021
Net interest income	$	38,237
Provision for loan losses		12,136
Non-interest income		17,749
Non-interest expense		37,659
Income before taxes		6,191
Income tax expense (benefit)		1,078
Net income (loss)	$	5,113

Earnings per share
Basic	$	0.30
Diluted		0.29

Basic weighted average shares o/s		17,299,927
Diluted weighted average shares o/s		17,352,947