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Note 6 - Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE
6:
          
GOODWILL AND OTHER INTANGIBLE ASSETS
 
Goodwill is tested annually, or more often than annually, if circumstances warrant, for impairment.  If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value.  Subsequent increases in goodwill value are not recognized in the financial statements.  Goodwill totaled
$348.5
million at
December
31,
2016
and
$327.7
million at
December
31,
2015.
 The Company recorded
$21.5
 million of goodwill during
2016
as a result of its Citizens acquisition.  The Company recorded
$95.2
 million,
$110.4
million and
$13.3
million of goodwill during
2015
as a result of its acquisitions of Liberty, Community First and Ozark Trust, respectively. Goodwill impairment was neither indicated nor recorded in
2016,
2015
or
2014.
The goodwill recorded in the Citizens acquisition will be deductible for tax purposes.
 
Core deposit premiums are amortized over a
ten
or
15
year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Core deposit premiums of
$5.1
million were recorded in
2016
as part of the Citizens acquisition. Core deposit premiums of
$11.3
million and
$14.6
million were recorded in
2015
as part of the Community First and Liberty acquisitions, respectively. During the
third
quarter of
2015,
the Company sold the Salina, Kansas banking operations and as a result reduced the related core deposit premium by
$382,000.
 
The Company recorded
$591,000
of intangible assets during the
third
quarter of
2016
related to the trust operations acquired in the Citizens acquisition. The Community First acquisition included an insurance line of business and the Company recorded an intangible asset of
$420,000
during the
first
quarter of
2015.
The Company recorded
$9.7
million of intangible assets during the
fourth
quarter of
2015
related to the trust operations acquired in the Ozark Trust merger. These intangible assets are being amortized over various periods ranging from
10
to
15
years.
 
 
102
  
 
 
The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) at
December
31,
2016
and
2015
were as follows: 
 
(In thousands)   2016   2015
         
Goodwill   $
348,505
     $
327,686
  
Core deposit premiums:                
Gross carrying amount    
48,692
      
43,648
  
Accumulated amortization    
(10,625
 )    
(6,217
 )
Core deposit premiums, net    
38,067
      
37,431
  
Purchased credit card relationships:                
Gross carrying amount    
2,068
      
2,068
  
Accumulated amortization    
(1,344
 )    
(931
 )
Purchased credit card relationships, net    
724
      
1,137
  
Books of business intangible:                
Gross carrying amount    
15,884
      
15,293
  
Accumulated amortization    
(1,716
 )    
(624
 )
Books of business intangible, net    
14,168
      
14,669
  
Other intangible assets, net    
52,959
      
53,237
  
Total goodwill and other intangible assets   $
401,464
     $
380,923
  
 
Core deposit premium amortization expense recorded for the years ended
December
31,
2016,
2015
and
2014
was
$4.4
 million,
$3.9
million and
$1.4
million, respectively. PCCR amortization expense recorded for the years ended
December
31,
2016,
2015
and
2014
was
$
414,000
.
Book of business amortization expense recorded for the year ended
December
31,
2016,
2015
and
2014
was
$1.1
million,
$528,000
and
$151,000,
respectively.
 
The Company’s estimated remaining amortization expense on intangibles as of
December
31,
2016
is as follows:
 
(In thousands)
Year
 
Amortization
Expense
 
2017
 
$
6,202
 
 
2018
 
 
6,099
 
 
2019
 
 
5,789
 
 
2020
 
 
5,777
 
 
2021
 
 
5,715
 
 
Thereafter
 
 
23,377
 
 
Total
 
$
52,959