v3.26.1
Business Combination and Asset Purchase
 6 Months Ended
Jun. 30, 2026
Business Combination [Abstract]  
Business Combination and Asset Purchase

NOTE 2 BUSINESS COMBINATION AND ASSET PURCHASE

Changes in accretable yield, or income expected to be collected, for the acquisition of Peoples Federal Savings and Loan completed in 2022, are as follows:

 

 

 

(In Thousands)

 

 

(In Thousands)

 

 

 

Three Months Ended
 June 30, 2026

 

 

Three Months Ended
 June 30, 2025

 

 

Six Months Ended
 June 30, 2026

 

 

Six Months Ended
 June 30, 2025

 

Beginning Balance

 

$

46

 

 

$

277

 

 

$

104

 

 

$

335

 

Accretion

 

 

(46

)

 

 

(58

)

 

 

(104

)

 

 

(116

)

Ending Balance

 

$

-

 

 

$

219

 

 

$

-

 

 

$

219

 

 

Changes in accretable yield, or income expected to be collected, for the acquisition of Perpetual Federal Savings Bank completed in 2021, are as follows:

 

 

 

(In Thousands)

 

 

(In Thousands)

 

 

 

Three Months Ended
 June 30, 2026

 

 

Three Months Ended
 June 30, 2025

 

 

Six Months Ended
 June 30, 2026

 

 

Six Months Ended
 June 30, 2025

 

Beginning Balance

 

$

-

 

 

$

1,117

 

 

$

112

 

 

$

1,453

 

Accretion

 

 

-

 

 

 

(335

)

 

 

(112

)

 

 

(671

)

Ending Balance

 

$

-

 

 

$

782

 

 

$

-

 

 

$

782

 

 

Changes in accretable yield, or income expected to be collected, for the acquisition of Ossian State Bank completed in 2021, are as follows:

 

 

 

(In Thousands)

 

 

(In Thousands)

 

 

 

Three Months Ended
 June 30, 2026

 

 

Three Months Ended
 June 30, 2025

 

 

Six Months Ended
 June 30, 2026

 

 

Six Months Ended
 June 30, 2025

 

Beginning Balance

 

$

-

 

 

$

67

 

 

$

-

 

 

$

107

 

Accretion

 

 

-

 

 

 

(39

)

 

 

-

 

 

 

(79

)

Ending Balance

 

$

-

 

 

$

27

 

 

$

-

 

 

$

27

 

 

The acquisition of Ossian State Bank resulted in the recognition of $980 thousand in core deposit intangible assets, the acquisition of Perpetual Federal Savings Bank resulted in the recognition of $668 thousand in core deposit intangible assets and the acquisition of Peoples Federal Savings and Loan resulted in the recognition of $6 million in core deposit intangible assets which are all being amortized over its remaining economic useful life of 7 years on a straight line basis. Core deposit intangible is included in other assets on the condensed consolidated balance sheets.

The amortization expense of the core deposit intangible for the six months ended June 30, 2025 was $828 thousand of which $280 thousand was related to the acquisition of Bank of Geneva on January 1, 2019. Of the approximately $1.1 million to be expensed in 2026, $548 thousand has been expensed for the six months ended June 30, 2026. Annual amortization of core deposit intangible assets is as follows:

 

 

 

 

 

 

 

Ossian

 

 

Perpetual

 

 

Peoples

 

 

Total

 

2026

 

$

140

 

 

$

95

 

 

$

861

 

 

$

1,096

 

2027

 

 

140

 

 

 

95

 

 

 

861

 

 

 

1,096

 

2028

 

 

47

 

 

 

72

 

 

 

861

 

 

 

980

 

2029

 

 

-

 

 

 

-

 

 

 

646

 

 

 

646

 

 

$

327

 

 

$

262

 

 

$

3,229

 

 

$

3,818

 

 

The purchase of Adams County Financial Resources in 2020 resulted in the allocation of $800 thousand to customer list intangible, included in other assets, to be amortized over 6.5 years on a straight-line basis.

The amortization expense of the customer list intangible for the six months ended June 30, 2025 was $61 thousand. Of the $123 thousand to be expensed in 2026, $61 thousand has been expensed for the six months ended June 30, 2026. Annual amortization expense of customer list intangible is as follows:

 

 

 

(In Thousands)

 

 

 

Adams County Financial Resources

 

2026

 

$

123

 

2027

 

 

49

 

 

$

172