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Business Combination and Asset Purchase (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022. The amounts of loans at April 30, 2021, December 31, 2021 and March 31, 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 - March 31, 2022
Consumer Real Estate	$	21
Agricultural Real Estate		-
Commercial Real Estate		210
Commercial & Industrial		277
Carrying amount, net of fair value adjustment of $321	$	187

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 months ended are as follows:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	(In Thousands)			(In Thousands)
Beginning Balance	$	1,198		$	1,653
Additions		5			1
Accretion		(106	)		(108	)
Reclassification from nonaccretable difference		-			-
Disposals		-			(4	)
Ending Balance	$	1,097		$	1,542

Schedule of Pro-forma Results

The following schedule includes pro-forma results for the three months ended March 31, 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)
	Three Months Ended
	March 31, 2022		March 31, 2021
Summary of Operations
Net Interest Income - Before Provision for Loan Losses	$	19,783	$	19,250
Provision for Loan Losses		580		1,701
Net Interest Income After Provision for Loan Losses		19,203		17,549
Noninterest Income		4,343		5,226
Noninterest Expense		13,493		14,055
Income Before Income Taxes		10,053		8,720
Income Taxes		1,951		1,622
Net Income	$	8,102	$	7,098
Basic and Diluted Earnings Per Share	$	0.62	$	0.54

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 March 31, 2022. The amounts of loans at October 1, 2021, December 31, 2021 and March 31, 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 - March 31, 2022
Consumer Real Estate	$	536
Agricultural Real Estate		110
Commercial Real Estate		2
Commercial & Industrial		-
Carrying amount, net of fair value adjustment of $177	$	471

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 March 31, 2022			Three Months Ended March 31, 2021
	(In Thousands)			(In Thousands)
Beginning Balance	$	5,262		$	-
Additions		64			-
Accretion		(322	)		-
Reclassification from nonaccretable difference		-			-
Disposals		-			-
Ending Balance	$	5,004		$	-

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 March 31, 2022			Three Months Ended March 31, 2021
	(In Thousands)			(In Thousands)
Beginning Balance	$	645		$	-
Additions		-			-
Accretion		(44	)		-
Reclassification from nonaccretable difference		-			-
Disposals		-			-
Ending Balance	$	601		$	-