Business Combination and Asset Purchase (Tables)

6 Months Ended

Jun. 30, 2021

Business Acquisition [Line Items]

Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized

The following table summarizes the consideration paid for Ossian State Bank and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date.

Fair Value of Consideration Transferred
	(In Thousands)
Cash	$	20,001
Total	$	20,001
Recognized amounts of identifiable assets acquired and liabilities assumed
Assets
Cash and cash equivalents	$	20,229
Interest-bearing time deposits		20,226
Securities - available-for-sale		30,243
Other securities, at cost		281
Loans, net		52,403
Premises and equipment		494
Goodwill		8,726
Other assets		4,456
Total Assets Purchased	$	137,058
Liabilities
Deposits
Noninterest bearing	$	34,509
Interest bearing		81,535
Total deposits		116,044
Accrued expenses and other liabilities		1,013
Total Liabilities Assumed	$	117,057

Summary of Carrying Amount of Loans

The carrying amount of those loans is included in loans, net on the balance sheet at June 30.  The amounts of loans at April 30, 2021 and June 30, 2021 are as follows:

	2021
	(In Thousands)
Balance - April 30, 2021
Consumer Real Estate	$	24
Agricultural Real Estate		981
Commercial Real Estate		315
Commercial & Industrial		314
Carrying amount, net of fair value adjustment of $325	$	1,309
Balance - June 30, 2021
Consumer Real Estate	$	24
Agricultural Real Estate		981
Commercial Real Estate		310
Commercial & Industrial		309
Carrying amount, net of fair value adjustment of $325	$	1,299

Summary of Loans Acquired and Contractually Required Payments Receivable

Loans acquired during 2021 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

	(In Thousands)
Contractually required payments receivable at acquisition
Consumer Real Estate	$	28
Agricultural Real Estate		1,142
Commercial Real Estate		527
Commercial & Industrial		360
Total required payments receivable	$	2,057
Cash flows expected to be collected at acquisition	$	1,309
Basis in acquired loans at acquisition	$	1,634

Summary of Changes in Accretable Yield or Income Expected to be Collected

Changes in accretable yield, or income expected to be collected, for the three and six months ended are as follows:

	Three Months Ended June 30, 2021			Three Months Ended June 30, 2020			Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
	(In Thousands)			(In Thousands)			(In Thousands)			(In Thousands)
Beginning Balance	$	1,542		$	1,978		$	1,653		$	2,021
Additions		4			1			5			2
Accretion		(107	)		(108	)		(215	)		(214	)
Reclassification from nonaccretable difference		-			-			-			62
Disposals		-			-			(4	)		-
Ending Balance	$	1,439		$	1,871		$	1,439		$	1,871

Schedule of Pro-forma Results

The following schedule includes pro-forma results for the three and six months ended June 30, 2021 and 2020 as if the Ossian State Bank acquisitions had occurred as of the beginning of the comparable prior reporting period.

	(in thousands of dollars, except per share data)				(in thousands of dollars, except per share data)
	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Summary of Operations
Net Interest Income - Before Provision for Loan Losses	$	16,229	$	15,484	$	32,032	$	30,478
Provision for Loan Losses		641		1,570		2,342		3,001
Net Interest Income After Provision for Loan Losses		15,588		13,914		29,690		27,477
Noninterest Income		4,069		3,421		9,228		6,549
Noninterest Expense		12,209		11,151		25,130		22,604
Income Before Income Taxes		7,448		6,184		13,788		11,422
Income Taxes		1,543		1,166		2,674		2,166
Net Income	$	5,905	$	5,018	$	11,114	$	9,256
Basic and Diluted Earnings Per Share	$	0.52	$	0.45	$	0.99	$	0.83

Schedule of Annual Amortization of Core Deposit Intangible Assets

Annual amortization of core deposit intangible assets is as follows:

	(In Thousands)		(In Thousands)		(In Thousands)
	Geneva		Ossian		Total
2021	$	560	$	93	$	653
2022		560		140		700
2023		560		140		700
2024		560		140		700
2025		560		140		700
Thereafter		-		327		-
	$	2,800	$	980		3,453

Customer Lists [Member]

Business Acquisition [Line Items]

Schedule of Annual Amortization of Core Deposit Intangible Assets

Annual amortization expense of customer list intangible is as follows:

	(In Thousands)
	Adams County Financial Resources
2021	$	123
2022		123
2023		123
2024		123
2025		123
Thereafter		169
	$	784

Ossian Financial Services, Inc. [Member]

Business Acquisition [Line Items]

Summary of Changes in Accretable Yield or Income Expected to be Collected

Changes in accretable yield, or income expected to be collected, are as follows:

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
	(In Thousands)			(In Thousands)
Beginning Balance	$	-		$	-
Additions		762			762
Accretion		(29	)		(29	)
Reclassification from nonaccretable difference		-			-
Disposals		-			-
Ending Balance	$	733		$	733

Adams County Financial Resources

Business Acquisition [Line Items]

Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed Recognized

The following table summarizes the consideration paid for ACFR and the amounts of the assets acquired:

Fair Value of Consideration Transferred
	(In Thousands)
Common Shares (40,049 shares)	$	825
Total	$	825
Recognized amounts of identifiable assets acquired
Assets
Premises and equipment	$	25
Customer list intangible		800
Total Assets Purchased	$	825