Acquisitions (Tables)

9 Months Ended

Sep. 30, 2020

Schedule Of Assets Acquired And Liabilities Assumed


	As Recorded	Fair Value		As Recorded
	by FSB	Adjustments		at Acquisition
		(in thousands)
Cash and due from banks	$ 1,978	$ -		$ 1,978
Interest-bearing deposit at banks	9,339	-		9,339
Securities	21,371	106	(a)	21,477
FHLB Stock	2,614	-		2,614
Loans receivable	273,869	(2,484)	(b)	271,385
Allowance for loan losses	(1,706)	1,706	(c)	-
Premises and equipment	2,303	(56)	(d)	2,247
Intangible assets	-	166	(e)	166
Bank owned life insurance	3,891	-		3,891
Operating lease right-of-use asset	2,020	374	(f)	2,394
Other assets	6,033	1,640	(g)	7,673
Total assets acquired	$ 321,712	$ 1,452		$ 323,164

Deposits	237,688	1,485	(h)	239,173
Other borrowed funds	50,597	1,929	(i)	52,526
Operating lease liability	2,217	176	(j)	2,393
Other liabilities	2,557	(573)	(k)	1,984
Total liabilities assumed	$ 293,059	$ 3,017		$ 296,076

Net assets acquired				27,088
Purchase price				28,856
Goodwill recorded in merger				$ 1,768

Explanation of certain fair value related adjustments:

(a)Represents the fair value adjustments on investment securities.

(b)Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the write-off of deferred fees/costs and premiums.

(c)Represents the elimination of FSB’s allowance for loan losses.

(d)Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

(e)Represents the intangible assets recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

(f)Represents the fair value adjustments on operating lease right of use assets.

(g)Represents an adjustment to other assets acquired. The largest adjustment was to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(h)Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(i)Represents the fair value adjustments on FHLB borrowings, which will be treated as a decrease to interest expense over the life of the borrowings.

(j)Represents the fair value adjustments on operating lease liabilities.

(k)Represents an adjustment to other liabilities assumed.

Schedule Of Selected Pro Forma Financial Information


		Three months ended September 30,				Nine months ended September 30,
		2020		2019		2020		2019
				(in thousands)
Net Interest Income	$	13,250	$	15,779	$	40,014	$	46,185
Non-Interest Income		5,857		5,718		14,023		15,441
Non-Interest Expense		13,944		14,764		42,905		43,026
Net Income		4,554		5,355		9,046		14,416