(9) Balance sheet and statements of income adjustment related to the fair value of interest-bearing time deposits and corresponding statements of income adjustments related to the amortization of discount on interestbearing time deposits based on the expected life of interest-bearing time deposits of 3 years. Balance Sheet Statements of Income September 30, 2024 Nine Months Ended September 30, 2024 Twelve Months Ended December 31, 2023 Certificates of deposit Certificates of deposit fair value adjustment . . . . . . . . . . . . . . . . . . . $(1,116) $279 $372 Reversal of existing certificate of deposit . . . . . . . . . . . . . . . . . . . . . 14 (4) (5) Total adjustments for certificates of deposits . . . . . . . . . . . . . . . . . . . . $(1,102) $275 $367 (10) No balance sheet adjustment is needed for borrowings since the borrowings were short term in nature. Statements of income adjustment to reflect the increase in borrowing expense for funding charge related to $11.7 million after-tax merger related expenses assuming a 4.83% interest rate with an assumed increase in borrowings. Balance Sheet Statements of Income September 30, 2024 Nine Months Ended September 30, 2024 Twelve Months Ended December 31, 2023 Borrowings Funding cost of after-tax merger related charges . . . . . . . . . . . . . . . — 513 683 Total borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $— $513 $683 (11) Balance sheet adjustment to reflect the accrual of one-time merger-related charges for Mid Penn and William Penn: (a) William Penn pre-tax charges are estimated at $2.6 million ($2.4 million after-tax) and are included as a pro forma fair value liability accrual, and (b) Mid Penn pre-tax charges are estimated at $11.5 million ($9.3 million after-tax) and are included as a pro forma liability accrual with the after-tax cost as reduction to retained earnings The pro forma statements of income does include an accrual for one-time merger related charges of $11.5 million. It is noted that a tax benefit was not taken for certain merger obligations and costs that were not considered to be tax deductible. The pro forma statements of income include Mid Penn merger-related expenses. Balance Sheet Statements of Income September 30, 2024 Nine Months Ended September 30, 2024 Twelve Months Ended December 31, 2023 Other Liabilities Mid Penn Bancorp, Inc. accrual for one-time merger related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,502 $— $11,502 William Penn Bancorporation accrual for one-time merger related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,649 $— $ — Total other liabilities adjustments .......................... $14,151 $— $11,502 37
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