Business Combinations (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2022		Three months ended June 30, 2021		Six months ended June 30, 2022		Six months ended June 30, 2021

Net interest income	$	-	$	49,600	$	93,267	$	90,812
Provision for loan losses		-		3,140		3,859		15,726
Non-interest income		-		18,519		39,801		36,545
Non-interest expense		-		48,846		84,141		89,845
Income before taxes		-		16,133		45,068		21,786
Income tax expense (benefit)		-		3,560		10,062		4,371
Net income (loss)	$	-	$	12,573	$	35,006	$	17,415

Earnings per share
Basic	$	0.00	$	0.62	$	1.76	$	0.87
Diluted		0.00		0.62		1.75		0.87

Basic weighted average shares o/s		-		20,359,460		19,875,516		19,977,949
Diluted weighted average shares o/s		-		20,412,480		19,947,227		20,030,969

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):

	Six months ended June 30, 2021

Net interest income	$	86,217
Provision for loan losses		11,776
Non-interest income		37,145
Non-interest expense		87,812
Income before taxes		23,774
Income tax expense (benefit)		4,947
Net income (loss)	$	18,827

Earnings per share
Basic	$	1.06
Diluted		1.06

Basic weighted average shares o/s		17,685,679
Diluted weighted average shares o/s		17,738,699