ACQUISITION OF MIDCOAST COMMUNITY BANCORP, INC (Tables)

12 Months Ended

Dec. 31, 2020

Summarizes the Purchase Price of Midcoast

The following table summarizes the purchase of MidCoast as of April 17, 2020:

(In Thousands, Except Per Share Data)
Purchase Price Consideration in Common Stock
Citizens Financial Services, Inc. shares issued		373,356
Value assigned to Citizens Financial Services, Inc. common share	$	51.50
Purchase price assigned to MidCoast common shares exchanged for Citizens Financial Services, Inc.				$	19,228
Purchase Price Consideration - Cash for Common Stock
Purchase price assigned to MidCoast common shares exchanged for cash					7,615
Total Purchase Price					26,843
Net Assets Acquired:
MidCoast Community Bancorp, Inc shareholders’ equity	$	24,330
Adjustments to reflect assets acquired at fair value:
Investments
Loans
Interest rate		1,424
General credit		(4,375	)
Specific credit - non-amortizing		(2,135	)
Specific credit - amortizing		(966	)
Core deposit intangible		157
Owned premises		(426	)
Other assets		65
Deferred tax assets		2,217
Adjustments to reflect liabilities acquired at fair value:
Time deposits		(1,018	)
Borrowings		(497	)
Other liabilities		(13	)
					18,763
Goodwill resulting from merger				$	8,080

Asset Acquired and Liability Assumed

The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed:

(In Thousands)
Total purchase price				$	26,843
Net assets acquired:
Cash and cash equivalents	$	8,637
Loans		223,235
Premises and equipment, net		1,787
Accrued interest receivable		586
Bank-owned life insurance		3,766
Intangibles		157
Deferred tax asset		3,402
Other assets		2,878
Time deposits		(123,841	)
Deposits other than time deposits		(84,985	)
Accrued interest payable		(164	)
Borrowings		(15,497	)
Other liabilities		(1,198	)
					18,763
Goodwill resulting from the MidCoast merger				$	8,080

Estimated Future Amortization Expense

The following table provides the current year and estimated future amortization expense for the next five years of amortized intangible assets (in thousands). We based our projections of amortization expense shown below on existing asset balances at December 31, 2020. Future amortization expense may vary from these projections:

	MSRs		Core deposit intangibles		Total
Year ended December 31, 2020	$	179	$	216	$	395
Estimate for year ended December 31,
2021		265		192		457
2022		212		156		368
2023		166		121		287
2024		128		86		214
2025		94		50		144

Pro Forma Information

The following table presents financial information regarding the former MidCoast operations included in our Consolidated Statement of Income from the date of acquisition through December 31, 2020 under the column “Actual from Acquisition Date through December 31, 2020”. In addition, the following table presents unaudited pro forma information as if the acquisition of MidCoast had occurred on January 1, 2019 under the “Pro Forma” columns. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited proforma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings as a result of the integration and consolidation of the acquisition. Merger and acquisition integration costs and amortization of fair value adjustments are included in the numbers below.

	Actual from Acquisition		Pro Formas
	Date Through		Twelve Months Ended December 31,
(In Thousands, Except Per Share Data)	December 31, 2020		2020		2019
Net interest income	$	9,314	$	63,860	$	60,097
Non-interest income		1,024		11,743		8,685
Net income		4,909		23,274		22,251
Pro forma earnings per share:
Basic			$	5.94	$	5.66
Diluted			$	5.94	$	5.66

MidCoast Community Bancorp, Inc [Member]

Business Acquisition [Line Items]

Estimated Future Amortization Expense

As of December 31, 2020, the current year and estimated future amortization expense for the core deposit intangibles was (in thousands):


	Core deposit intangibles
Amortization for the period 4/17/20 - 12/31/20	$	19
Estimate for year ending December 31,
2021		27
2022		24
2023		21
2024		18
2025		15
Thereafter		33
Total	$	138