|
Acquisition Activity
|
6 Months Ended | |
|---|---|---|
|
Jun. 30, 2014
|
||
| Business Combinations [Abstract] | ||
| Business Combination Disclosure [Text Block] |
Note 3 - Acquisition Activity On April 1, 2014, the Bank acquired First Federal Savings and Loan Association of Hammond ("First Federal"), a federal mutual savings association headquartered in Hammond, Indiana. First Federal operated two banking locations in Hammond and Highland, Indiana. The Bank acquired First Federal by merging First Federal with and into the Bank immediately following First Federal's voluntary supervisory conversion to stock form. The Bank was not required to issue or pay any shares, cash, or other consideration in the merger. The First Federal acquisition added assets with a fair value of $37.9 million, including securities with a fair value of $3.8 million, loans receivable with a fair value of $29.1 million, premises and equipment with a fair value of $967 thousand, and foreclosed real estate of $690 thousand. The First Federal acquisition also added liabilities with a fair value of $39.6 million, including core deposits with a fair value of $7.2 million and certificates of deposit with a fair value of $29.8 million. As a result of the differences in the fair value of assets and liabilities, goodwill of $1.6 million and intangible assets of $93,000 were also added. As part of the fair value of loans receivable, a net fair value discount was established for residential real estate, including home equity lines of credit, of $1.1 million that is being amortized over 55 months on a straight line basis. Approximately $67,000 of amortization was taken during the quarter ended June 30, 2014. It is estimated that $134,000 of amortization will occur during the remainder of 2014, $268,000 of amortization will occur annually through to 2017, and amortization of $95,000 will occur during 2018. As part of the fair value of certificates of deposit, a fair value premium was established of $276,000 that is being amortized over 17 months on a straight line basis. Approximately $50,000 of amortization was taken during the quarter ended June 30, 2014. It is estimated that $100,000 of amortization will occur during the remainder of 2014 and $126,000 of amortization will occur during 2015. |