Note 2 - Acquisition

6 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note

2

– Acquisition

On

June 14, 2019,

Consumers entered into an Agreement and Plan of Merger with Peoples Bancorp of Mt. Pleasant, Inc. (Peoples) and its wholly owned subsidiary, The Peoples National Bank of Mount Pleasant (Peoples Bank). On

January 1, 2020,

Consumers completed the acquisition by merger of Peoples in a stock and cash transaction for an aggregate consideration of approximately

$10,405.

In connection with the acquisition, the Corporation issued

269,920

shares of common stock and paid

$5,128

in cash to the former shareholders of Peoples. Immediately following the merger, Peoples Bank, was merged into Consumers banking subsidiary, Consumers National Bank.

On

December 31, 2019,

Peoples had approximately

$72,016

in total assets,

$55,273

in loans and

$60,826

in deposits at its

three

banking centers located in Mt. Pleasant, Adena, and Dillonvale, Ohio. The transaction will be recorded as a purchase and, accordingly, the operating results of Peoples will be included in the Corporation’s Consolidated Financial Statements beginning on

January 1, 2020.

The assets and liabilities of Peoples will be recorded on the Corporation’s Balance Sheet at their estimated fair values as of

January 1, 2020,

the acquisition date, and Peoples’ results of operations will be included in the Corporation’s Consolidated Statements of Income beginning on that date.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition of Peoples. Core deposit intangible will be amortized over

ten

years on a straight-line basis. Goodwill will

not

be amortized, but instead will be evaluated for impairment.

Consideration Paid				$	10,405
Net assets acquired:
Cash and cash equivalents	$	833
Certificates of deposit in other financial institutions		11,839
Securities, available-for-sale		4,051
Federal bank and other restricted stocks, at cost		154
Loans, net		54,799
Premises and equipment		818
Core deposit intangible		270
Accrued interest receivable and other assets		141
Noninterest-bearing deposits		(11,979	)
Interest-bearing deposits		(48,872	)
Federal funds purchased		(2,348	)
Federal Home Loan Bank advances		(491	)
Other liabilities		(166	)
Total net assets acquired					9,049
Goodwill				$	1,356

The acquired assets and liabilities were measured at estimated fair values. Management made certain estimates and exercised judgement in accounting for the acquisition.