Note 2 - Acquisition

12 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE

2

—

ACQUISITION

On

July 16, 2021,

the Corporation completed its acquisition of

two

branches (Branches) from CFBank, National Association (CFBank) located in Calcutta and Wellsville, Ohio. In connection with the acquisition, CFBank transferred to the Bank the land, buildings and other associated assets of the Branches;

$104

million in deposits attributable to the Branches;

$15

million in aggregate principal amount of subordinated debt securities issued by unrelated financial institutions;

$13

million of loans attributable to the Branches and other single family residential mortgage loans and home equity lines of credit from CFBank's Northeast Ohio loan portfolio. In addition, the Bank purchased

$7.7

million in aggregate principal amount of participation interests in commercial and commercial real estate loans originated by and held in CFBank's portfolio. An additional

$7.3

million in participation interests is expected to be purchased by the Bank by

December 31, 2021.

As consideration for the Branches, the Bank paid CFBank the net book value of the land, building and associated assets of the Branches; a deposit premium equal to

1.75%

of the average daily deposits of the Branches for the

30

days preceding the closing; and the par value of the subordinated debt securities and loans acquired by the Bank.

On

January 1, 2020,

the Corporation completed the acquisition by merger of Peoples and its wholly owned subsidiary, The Peoples National Bank of Mount Pleasant (Peoples Bank) 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. As of the date of acquisition of Peoples, the estimated fair value of loans received was

$55,320

and the estimated fair value of deposits assumed was

$60,851.

Acquisition costs of

$827

pre-tax, or

$680

after-tax, were expensed during the

twelve

-month period ended

June 30, 2020.

The transaction created

$836

of goodwill,

none

of which is deductible for tax purposes.