ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2022

ACQUISITIONS

Estimated fair value of assets acquired and liabilities assumed

The following presents the estimated fair values of the assets acquired and liabilities assumed in the transaction with Teton as of December 31, 2021, including all measurement period adjustments to the provisional estimates (dollars in thousands):

	Provisional		Measurement Period		December 31,
Fair value of consideration transferred	Estimates		Adjustments		2021
Cash consideration	$	11,501	$	—	$	11,501
Common stock issued		39,818		—		39,818
Total fair value of consideration transferred		51,319		—		51,319
Assets acquired
Cash and cash equivalents		132,498		—		132,498
Available-for-sale securities, at fair value		18,058		—		18,058
Correspondent bank stock, at cost		928		—		928
Mortgage loans held for sale		840		—		840
Loans		252,275		(857)		251,418
Premises and equipment		17,758		—		17,758
Accrued interest receivable		923		—		923
Accounts receivable		95		—		95
Other receivable		520		—		520
Core deposit intangible(1)		1,264		698		1,962
Other assets		226		242		468
Assets held for sale		115		5		120
Total assets acquired		425,500		88		425,588
Liabilities assumed
Deposits		379,227		(29)		379,198
Accrued interest payable		26		—		26
Other liabilities		1,283		—		1,283
Deferred tax liabilities/(assets), net		42		(71)		(29)
Total liabilities assumed		380,578		(100)		380,478
Net assets acquired		44,922		188		45,110
Goodwill recognized	$	6,397	$	(188)	$	6,209
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⁽¹⁾ The core deposit intangible was determined to have an estimated life of 10 years.

Schedule of acquisition expenses within Non-interest expense

The following presents the acquisition expenses within Non-interest expense of the Condensed Consolidated Statements of Income as of the date noted (dollars in thousands):

	Three Months Ended		Nine Months Ended
	September 30, 2022		September 30, 2022
Mergers and acquisitions expense:
Salaries and employee benefits	$	98	$	479
Professional services		90		475
Technology and information systems		1		6
Data processing(1)		(96)		(73)
Marketing		7		81
Other		54		59
Total mergers and acquisitions expense	$	154	$	1,027

⁽¹⁾ Represents reduced contract termination fees from the system conversion.

Schedule of business acquisition, pro forma information

The following table presents pro forma information for the three and nine months ended September 30, 2022 and 2021, as if the Teton Acquisition had occurred on January 1, 2021. This table has been prepared for comparative purposes only, and is not indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the periods presented, nor is it indicative of future results (in thousands, except per share data):

		Pro Forma
		Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net interest income after provision for loan losses	$	21,041	$	18,094	$	58,734	$	51,305
Non-interest income		6,454		10,924		21,994		32,283
Net income		6,221		7,760		16,227		22,152
Pro forma earnings per share:
Basic		0.66		0.84		1.72		2.38
Diluted		0.64		0.82		1.67		2.33