Common use of Pending Merger Clause in Contracts

Pending Merger. On July 19, 1999, the Company entered into an agreement and plan of merger with HCB Bancorp (HCB), a bank holding company located in Palmyra, Indiana. HCB is the parent company of ▇▇▇▇▇▇▇▇ County Bank, a state-chartered commercial bank. Terms of the agreement provide for an exchange of 15.5 shares of the Company's common stock for each share of HCB common stock. The merger is subject to regulatory and stockholder approvals. At June 30, 1999, HCB had total assets of $88.1 million and stockholders' equity of $12.1 million. HCB had net income of $491,000 for the six months ended June 30, 1999. HCB reported net income of $1,085,000 and $1,132,000 for the years ended December 31, 1998 and 1997, respectively. The following summarized operating data gives effect to the merger had it occurred on July 1, 1997: (In thousands, except per share data) 1999 1998 ------- ------- Net interest income $7,052 $6,399 ====== ====== Net income $2,018 $2,096 ====== ====== Net income per common share, basic $ .80 $ .83 ====== ====== Net income per common share, diluted $ .79 $ .82 ====== ======