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Goodwill and Intangible Assets (Notes) | 6 Months Ended
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Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | 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 First Mid Insurance. The following table presents gross carrying value and accumulated amortization by major intangible asset class as of June 30, 2018 and December 31, 2017 (in thousands):
| June 30, 2018 | December 31, 2017
| Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization
Goodwill not subject to amortization (effective 1/1/02) | $ | 91,264 |  | $ | 3,760 |  | $ | 63,910 |  | $ | 3,760 |
Intangibles from branch acquisition | 3,015 |  | 3,015 |  | 3,015 |  | 3,015 |
Core deposit intangibles | 25,086 |  | 12,484 |  | 19,862 |  | 11,473 |
Other intangibles | 3,731 |  | 2,376 |  | 3,731 |  | 2,285 |
| $ | 123,096 |  | $ | 21,635 |  | $ | 90,518 |  | $ | 20,533 |
Goodwill of $27.4 million was recorded for acquisition and merger of First Bank during the second quarter of 2018. 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 the acquisition of First Bank and the amount of goodwill recorded (in thousands):
Purchase price (in excess of net book value) |  | $ | 26,946 |
Purchase accounting adjustments: |  |
Fair value of securities | 320 |  |
Fair value of loans, net | 3,886 |  |
Fair value of OREO | 12 |  |
Fair value of premises and equipment | 689 |  |
Fair value of time deposits | 1,301 |  |
Fair value of FHLB advances | (328 | ) |
Fair value of subordinated debentures | (1,451 | ) |
Core deposit intangible | (5,224 | ) |
Other assets and other liabilities, net | 1,203 |  |
|  | 408 |
Resulting goodwill from acquisition |  | $ | 27,354 |
As part of the First Bank acquisition, the Company acquired mortgage servicing rights valued at $425,000. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of June 30, 2018, June 30, 2017 and December 31, 2017 (in thousands):
| June 30, 2018 |  |  | June 30, 2017 |  |  | December 31, 2017 |
Beginning Balance | $ | 844 |  |  |  | $985 |  |  | $ | 985 |
Mortgage servicing rights acquired during period | 425 |  |  | — |  |  | — |
Mortgage servicing rights capitalized | 7 |  |  | — |  |  | — |
Mortgage servicing rights amortized | (119 | ) |  | (72 | ) |  | (141 | )
Ending Balance | $ | 1,157 |  |  |  | $913 |  |  | $ | 844 |
Total amortization expense for the six months ended June 30, 2018 and 2017 was as follows (in thousands):
| Three months ended June 30, |  | Six months ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Core deposit intangibles | 591 |  |  | 472 |  |  | $ | 1,011 |  |  | $ | 943 |
Other intangibles | 45 |  |  | 45 |  |  | 91 |  |  | 91 |
Mortgage servicing rights | 80 |  |  | 42 |  |  | 119 |  |  | 72 |
| $ | 716 |  |  | $ | 559 |  |  | $ | 1,221 |  |  | $ | 1,106 |
Aggregate amortization expense for the current year and estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):
Aggregate amortization expense: |
For period 01/01/18-06/30/18 | $ | 1,221 |
Estimated amortization expense: |
For period 07/01/18-12/31/18 | 1,556 |
For year ended 12/31/19 | 2,903 |
For year ended 12/31/20 | 2,409 |
For year ended 12/31/21 | 1,943 |
For year ended 12/31/22 | 1,730 |
For year ended 12/31/23 | 1,547 |
In accordance with the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets,” codified within ASC 350, the Company performed testing of goodwill for impairment as of September 30, 2017 and determined that, as of that date, 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 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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