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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has goodwill from business combinations, intangible assets from branch acquisitions, identifiable intangible assets assigned to core deposit relationships and customer lists of insurance agencies acquired. The following table presents gross carrying amount and accumulated amortization by major intangible asset class as of December 31, 2016 and 2015 (in thousands):
|  | 2016 |  | 2015
|  | Gross Carrying Value |  | Accumulated Amortization |  | Gross Carrying Value |  | Accumulated Amortization
Goodwill not subject to amortization |  | $ | 61,551 |  |  | $ | 3,760 |  |  | $ | 44,767 |  |  | $ | 3,760 |
Intangibles from branch acquisition |  | 3,015 |  |  | 3,015 |  |  | 3,015 |  |  | 3,015 |
Core deposit intangibles |  | 19,862 |  |  | 9,644 |  |  | 15,202 |  |  | 8,017 |
Customer list intangibles |  | 3,731 |  |  | 2,102 |  |  | 3,731 |  |  | 1,919 |
|  | $ | 88,159 |  |  | $ | 18,521 |  |  | $ | 66,715 |  |  | $ | 16,711 |
During the third quarter of 2016, goodwill of $16.8 million was recorded for the acquisition of First Clover Leaf. The goodwill consists largely of the synergies and economies of scale expected from combining the operations of First Clover Leaf Bank with First Mid Bank. All of the goodwill was assigned to the banking segment of the Company. The Company expects this goodwill will not be deductible for tax purposes. The following table provides a reconciliation of the purchase price paid for First Clover Leaf and the amount of goodwill recorded (in thousands):
Purchase price |  |  |  | $ | 8,741 |
Less purchase accounting adjustments: |  |  |  |
Fair value of securities |  | 737 |  |  |
Fair value of loans |  | 3,475 |  |  |
Fair value of OREO |  | 754 |  |  |
Fair value of premises and equipment |  | (1,963 | ) |  |
Fair value of time deposits |  | 1,994 |  |  |
Fair value of FHLB advances |  | 113 |  |  |
Fair value of subordinated debentures |  | (731 | ) |  |
Core deposit intangible |  | (4,660 | ) |  |
Other Assets |  | 8,325 |  |  |
|  |  |  | 8,044 |
Resulting goodwill from acquisition |  |  |  | $ | 16,785 |
During the third quarter of 2015, goodwill of $14.3 million was recorded for the acquisition of twelve Old National Bank Branches. The goodwill consisted largely of the synergies and economies of scale expected from combining the operations of the Company and the ONB Branches. All of the goodwill was assigned to the banking segment of the Company. The Company expects this goodwill to be fully deductible for tax purposes. The following table provides a reconciliation of the purchase price paid for the ONB Branches and the amount of goodwill recorded (in thousands):
Purchase price |  |  |  | $ | 15,892 |
Less purchase accounting adjustments: |  |  |  |
Fair value of loans |  | 3,377 |  |  |
Fair value of premises and equipment |  | 125 |  |  |
Fair value of time deposits |  | 837 |  |  |
Core deposit intangible |  | (6,216 | ) |  |
Other Assets |  | 259 |  |  |
|  |  |  | (1,618 | )
Resulting goodwill from acquisition |  |  |  | $ | 14,274 |
During the fourth quarter of 2015, goodwill of $980,000 was also recorded for the acquisition of certain assets used by Illiana Insurance Agency, Ltd., in connection with its health plan and life insurance and annuity's business. The goodwill consists primarily of the customer list of the agency. The following table provides a reconciliation of the purchase price paid for Illiana and the amount of goodwill recorded (in thousands):
Purchase price |  |  |  | $ | 2,807 |
Less purchase accounting adjustments: |  |  |  |
Insurance company intangibles |  |  |  | (1,827 | )
Resulting goodwill from acquisition |  |  |  | $ | 980 |
As part of the acquisition of First Clover Leaf Bank, the Company acquired mortgage servicing righted valued at $1,069,000. The following table summarizes the activity pertaining to the mortgage servicing rights included in intangible assets as of December 31, 2016 (in thousands):
|  | December 31, 2016 |
Acquired Balance |  | 1,069 |
Mortgage Servicing rights capitalized |  | 14 |
Mortgage Servicing rights amortized |  | (98 | )
Ending Balance |  | $ | 985 |
Total amortization expense for the years ended December 31, 2016, 2015 and 2014 was as follows (in thousands):
|  | 2016 |  | 2015 |  | 2014
Core deposit intangibles |  | 1,628 |  |  | 876 |  |  | 643 |
Customer list intangibles |  | 183 |  |  | 15 |  |  | — |
Mortgage Servicing Rights |  | 98 |  |  | — |  |  | — |
|  | $ | 1,909 |  |  | $ | 891 |  |  | $ | 643 |
Estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):
For year ended 12/31/17 | $ | 1,496 |
For year ended 12/31/18 | 1,365 |
For year ended 12/31/19 | 1,243 |
For year ended 12/31/20 | 1,097 |
For year ended 12/31/21 | 875 |
In accordance with the provisions of SFAS 142,”Goodwill and Other Intangible Assets,” codified in ASC 350, the Company performed testing of goodwill for impairment as of September 30, 2016 and 2015, and determined, as of each of these dates, that goodwill was not impaired. Management also concluded that the remaining amounts and amortization periods were appropriate for all intangible assets.

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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