Page 45 - CNB Bank Shares 2018 Annual Report

CNB BANK SHARES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 17 – ACQUISITION
On June 4, 2018, the Company purchased 100% of the outstanding capital stock of Jacksonville Bancorp,
Inc., for cash of $36,700,000. The acquisition was accounted for as a purchase transaction and, accordingly,
the operations of Jacksonville Bancorp, Inc. from June 4, 2018 forward are included in the Company’s
consolidated results of operations. The fair values of the net assets acquired from Jacksonville Bancorp, Inc.
were as follows:

Cash and due from banks $ 2,778,034
Interest-earning demand deposits in financial institutions 3,877,475
Available-for-sale debt securities 109,148,578
Mortgage loans held for sale 223,400
Loans, net (contractual amount of $193,500,730) 190,772,443
Premises and equipment 3,937,567
Other real estate owned 10,500
Other intangible assets 546,223
Accrued interest receivable 1,677,425
Bank-owned life insurance policies 7,364,785
Net deferred tax assets 1,670,949
Other assets 1,896,422 BOARD OF DIRECTORS
Core deposit premium 4,677,884
Total assets 328,581,685
1,2
2
1
1,2
Deposits 273,462,010 Board of Directors (left to right): Rick Champley , Nancy Ruyle , Ralph Antle , James Ashworth ,
1,2
2
1,2
1
1
2
Short-term borrowings 3,401,536 Richard Foss , Joe Heitz , John Pietrzak , Richard Walden (Chairman) , Shawn Davis , James Salske ,
Federal Home Loan Bank advances 24,900,000 George Yard , Peter Genta , Larry Franklin , John T. Boehm , Judith Baker 1,2
2
2
1
2
Accrued interest payable 129,824
Other liabilities 6,877,702 1 CNB Bank Shares, Inc. Board Member
Total liabilities 308,771,072 2 CNB Bank & Trust, N.A. and Jacksonville Savings Bank Board Member
Net assets acquired 19,810,613
Cost of acquisition 36,700,000
Goodwill acquired $ 16,889,387

The Company believes that the acquisition of Jacksonville Bancorp, Inc. has provided the Company with the OFFICER LIST
opportunity to further expand its banking operations in the Jacksonville, Illinois market area. The resulting
discounts and premiums are being amortized over the expected economic lives of the related assets and CNB Bank Shares, Inc.
liabilities. The core deposit premium intangible asset is being amortized on an accelerated basis over its James Ashworth ........................................................................................................................ President & Vice Chairman
estimated useful life using an undiscounted cash flow method. Thomas DeRobertis ........................................................................................................Senior Vice President & Controller

CNB Bank & Trust
Shawn Davis .................................................................................................................President & Chief Executive Officer
Larry Franklin .......................................................................................Executive Vice President & Chief Operating Officer
Operations
Maureen Oswald ................................................................................................................Senior Vice President & Cashier
Kimberly Murray ..................................................................................................................... Vice President of Operations
Lisa Wolf ................................................................................................................Vice President of Computer Operations
Kent Brueggemann ...........................................................Vice President & Director of Commercial Services & E-Banking
Natalie Magnuson ............................................................................................................................E-Banking Coordinator
Aaron Shipley ........................................................................................................................................Project Coordinator
Matthew Turley ..................................................................................................Vice President & Chief Information Officer
Timothy Bradshaw .....................................................................................................Technology Officer & Security Officer
Mark Totsch ..............................................................................................................................Information Security Officer

42 ANNUAL REPOR T 2018 ANNUAL REPOR T 2018 43