Acquisitions

12 Months Ended

Dec. 31, 2016

Talmer

Business Acquisition [Line Items]

Acquisitions

Note 2: Acquisitions

On October 28, 2016, the Bank completed its previously announced acquisition of the Chicago branch of Talmer Bank and Trust, the banking subsidiary of Talmer Bancorp, Inc. (“Talmer”).  As a result of this transaction, the Bank acquired $223.8 million of loans, prior to fair value adjustment, and $48.9 million of deposits.  The purchase resulted in the Company establishing a metropolitan Chicago office presence with a strong commercial client focus, and retention of an experienced lending team.  The acquisition was funded with security sales and cash on hand, and was recorded applying the acquisition method of accounting.  The following table presents the assets acquired and the liabilities assumed, both tangible and intangible, net of fair value adjustments, as of the acquisition date:

Talmer Branch Acquisition Summary
As of Date of Acquisition
		10/28/2016
Assets acquired:
Cash on hand	$	122
Loans, net of purchase accounting adjustments		220,988
Premises and equipment, net		230
Goodwill		8,375
Core deposit intangible		659
Other assets acquired, including accrued interest, prepaids		573
Liabilities assumed:
Deposits - noninterest bearing demand		28,850
Deposits - interest bearing - Savings, NOW and Money market		17,941
Deposits - Time		2,103
Other liabilities assumed, including escrow deposits and payables		574
Net assets acquired, or total cash paid for acquisition	$	181,479

Acquisition expenses incurred in 2016 related to the Talmer branch purchase totaled $269,000 as of December 31, 2016; all material acquisition costs identified have been paid or accrued as of year end 2016.  As of December 31, 2016, the Company estimates that $8.5 million of the goodwill and acquisition costs incurred will be tax deductible.