Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Pro Forma Result of Comparable Prior Reporting Period

The following schedule includes pro-forma results for the three and nine months ended September 30, 2017 and 2016 as if the Lafayette, CNB, LaPorte Bancorp and Kosciusko acquisitions had occurred as of the beginning of the comparable prior reporting periods.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2017		2016		2017		2016
Summary of Operations:
Net Interest Income	$	28,856	$	26,628	$	84,471	$	80,515
Provision for Loan Losses		725		455		1,438		1,219
Net Interest Income after Provision for Loan Losses		28,131	$	26,173		83,033		79,296
Non-interest Income		8,077		10,534		24,175		32,547
Non-Interest Expense		26,523		32,400		73,003		86,781
Income before Income Taxes		9,685		4,307		34,205		25,062
Income Tax Expense		2,394		1,997		9,260		8,328
Net Income		7,291		2,310		24,945		16,734
Net Income Available to Common Shareholders	$	7,291	$	2,310	$	24,945	$	16,692
Basic Earnings Per Share	$	0.32	$	0.11	$	1.12	$	0.87
Diluted Earnings Per Share	$	0.32	$	0.11	$	1.11	$	0.86
		22,580,160		21,538,752		22,326,454		19,252,295
		22,715,273		21,651,953		22,455,798		19,346,376

LaPorte Bancorp Inc [Member]

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the LaPorte Bancorp acquisition is detailed in the following table.

ASSETS			LIABILITIES
Cash and due from banks	$	154,849	Deposits
Investment securities, available for sale		23,779	Non-interest bearing	$	66,733
			NOW accounts	99,346
Commercial		153,750	Savings and money market		117,688
Residential mortgage		42,603	Certificates of deposits		87,605
Consumer		16,801	Total deposits		371,372
Mortgage Warehousing		99,752
Total loans		312,906
			Borrowings	64,793
Premises and equipment, net		6,022	Interest payable		178
FHLB stock		4,029	Subordinated debt		4,504
Goodwill		20,993	Other liabilities		10,056
Core deposit intangible		2,514
Interest receivable		844
Cash value of life insurance		15,267
Other assets		8,334
Total assets purchased	$	549,537	Total liabilities assumed	$	450,903
Common shares issued	$	60,306
Cash paid		38,328
Total estimated purchase price	$	98,634

Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30

The following table details the acquired loans that are accounted for in accordance with ASC 310-30 as of June 1, 2016.

Contractually required principal and interest at acquisition	$	2,682
Contractual cash flows not expected to be collected (nonaccretable differences)		25
Expected cash flows at acquisition		2,657
Interest component of expected cash flows (accretable discount)		634
Fair value of acquired loans accounted for under ASC 310-30	$	2,023

Kosciusko Financial Inc [Member]

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Kosciusko acquisition is detailed in the following table. The final valuation numbers were received in September 2016 which changed the goodwill estimate from $6.9 million to $6.4 million.

ASSETS			LIABILITIES
Cash and due from banks	$	38,950	Deposits
Investment securities, available for sale		1,191	Non-interest bearing	$	27,871
			NOW accounts	35,213
Commercial		70,006	Savings and money market		26,953
Residential mortgage		26,244	Certificates of deposits		32,771
Consumer		6,319	Total deposits		122,808
Total loans		102,569
			Borrowings	9,038
Premises and equipment, net		1,466	Interest payable		55
FRB and FHLB stock		582	Other liabilities		989
Goodwill		6,443
Core deposit intangible		526
Interest receivable		636
Cash value of life insurance		2,745
Other assets		765
Total assets purchased	$	155,873	Total liabilities assumed	$	132,890
Common shares issued	$	14,470
Cash paid		8,513
Total estimated purchase price	$	22,983

Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30

The following table details an estimate of the acquired loans that are accounted for in accordance with ASC 310-30 as of July 18, 2016.

Contractually required principal and interest at acquisition	$	12,545
Contractual cash flows not expected to be collected (nonaccretable differences)		4,492
Expected cash flows at acquisition		8,053
Interest component of expected cash flows (accretable discount)		1,258
Fair value of acquired loans accounted for under ASC 310-30	$	6,795

Central National Bank & Trust [Member]

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on management’s preliminary valuation of the fair value of the tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions that are subject to change, the final purchase price for the CNB acquisition is allocated as follows:

ASSETS			LIABILITIES
Cash and due from banks	$	27,860	Deposits
Investment securities, available for sale		16,393	Non-interest bearing	$	24,079
			NOW accounts	9,038
Commercial		2,267	Savings and money market		13,829
Residential mortgage		6,624	Certificates of deposits		3,342
Consumer		1,579	Total deposits		50,288
Total loans		10,470
			Borrowings	459
Premises and equipment, net		444	Interest payable		7
FHLB stock		50	Other liabilities		154
Goodwill		609
Core deposit intangible		190
Interest receivable		154
Other assets		49
Total assets purchased	$	56,219	Total liabilities assumed	$	50,908
Cash paid		5,311
Total estimated purchase price	$	5,311

Lafayette Community Bancorp [Member]

Schedule of Purchase Price of Assets Acquired and Liabilities Assumed

Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Lafayette acquisition is detailed in the following table. Prior to the end of the one year measurement period for finalizing the purchase price allocation, such adjustments will be included in the purchase price allocation prospectively. If any adjustments are made to the preliminary assumptions (provisional amounts), disclosures will be made in the notes to the financial statements of the amounts recorded in the current period earnings by line item that have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date.

ASSETS				LIABILITIES
Cash and due from banks	$	24,846		Deposits
Investment securities, available for sale		6		Non-interest bearing	$	34,990
				NOW accounts	30,174
Commercial		98,011		Savings and money market		53,663
Residential mortgage		30,997		Certificates of deposits		32,271
Consumer		5,345		Total deposits		151,098
Total loans		134,353
				Borrowings	—
Premises and equipment, net		7,818		Interest payable		42
FHLB stock		395		Other liabilities		990
Goodwill		16,106
Core deposit intangible		777
Interest receivable		338
Other assets		2,020
Total assets purchased	$	186,659		Total liabilities assumed	$	152,130
Common shares issued	$	30,108	(1)
Cash paid		4,421
Total estimated purchase price	$	34,529

⁽¹⁾  This includes $955,000 of common shares previously held by Horizon.