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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2019
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 business lines acquired. The following table presents gross carrying amount and accumulated amortization by major intangible asset class as of December 31, 2019 and 2018 (in thousands):
|  | 2019 |  | 2018
|  | Gross Carrying Value |  | Accumulated Amortization |  | Gross Carrying Value |  | Accumulated Amortization
Goodwill not subject to amortization |  | $ | 108,752 |  |  | $ | 3,760 |  |  | $ | 109,037 |  |  | $ | 3,760 |
Intangibles from branch acquisition |  | 3,015 |  |  | 3,015 |  |  | 3,015 |  |  | 3,015 |
Core deposit intangibles |  | 32,355 |  |  | 17,746 |  |  | 32,355 |  |  | 14,017 |
Customer list intangibles |  | 16,129 |  |  | 3,917 |  |  | 16,029 |  |  | 2,648 |
|  | $ | 160,251 |  |  | $ | 28,438 |  |  | $ | 160,436 |  |  | $ | 23,440 |
Goodwill of $26.5 million was recorded for the 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 First Bank and the amount of goodwill recorded (in thousands):
Unallocated purchase price |  |  |  | $ | 26,946 |
Less purchase accounting adjustments: |  |  |  |
Fair value of securities |  | 320 |  |  |
Fair value of loans |  | 3,463 |  |  |
Fair value of OREO |  | 12 |  |  |
Fair value of mortgage servicing rights |  | (1,097 | ) |  |
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 |  | 1,860 |  |  |
|  |  |  | (455 | )
Resulting goodwill from acquisition |  |  |  | $ | 26,491 |
Goodwill of $18.4 million was recorded for the acquisition and merger of Soy Capital during the fourth 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 Soy Capital and the amount of goodwill recorded (in thousands):
Unallocated purchase price |  |  |  | $ | 21,694 |
Less purchase accounting adjustments: |  |  |  |
Fair value of securities |  | 41 |  |  |
Fair value of loans |  | 3,377 |  |  |
Fair value of OREO |  | 345 |  |  |
Fair value of premises and equipment |  | (953 | ) |  |
Fair value of time deposits |  | (343 | ) |  |
Fair value of FHLB advances |  | (29 | ) |  |
Core deposit intangible |  | (7,269 | ) |  |
Customer list intangibles |  | (12,298 | ) |  |
Other assets and other liabilities |  | 13,786 |  |  |
|  |  |  | $ | (3,343 | )
Resulting goodwill from acquisition |  |  |  | $ | 18,351 |
As part of the acquisition of First Bank acquisition, the Company acquired mortgage servicing rights valued at $1,558,000. There were no mortgage service rights added during 2019. The unpaid principal balances of mortgage loans serviced for others were $186.2 million and $207.7 million at December 31, 2019 and 2018, respectively. The following table summarizes the activity pertaining to the mortgage servicing rights included in intangible assets as of December 31, 2019 and 2018 (in thousands):
| December 31, 2019 |  |  | December 31, 2018 |
Beginning Balance | 2,101 |  |  | 844 |
Acquired Balance | — |  |  | 1,558 |
Mortgage Servicing rights capitalized | — |  |  | 7 |
Valuation reserve | (380 | ) |  | — |
Mortgage Servicing rights amortized | (411 | ) |  | (308 | )
I/O strip | 134 |  |  | — |
Ending Balance | $ | 1,444 |  |  | $ | 2,101 |
Total amortization expense for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):
|  | 2019 |  | 2018 |  | 2017
Core deposit intangibles |  | 3,729 |  |  | 2,544 |  |  | 1,829 |
Customer list intangibles |  | 1,269 |  |  | 363 |  |  | 183 |
Mortgage Servicing Rights |  | 850 |  |  | 308 |  |  | 141 |
|  | $ | 5,848 |  |  | $ | 3,215 |  |  | $ | 2,153 |
Estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):
For year ended 12/31/20 | $ | 4,917 |
For year ended 12/31/21 | 4,253 |
For year ended 12/31/22 | 3,829 |
For year ended 12/31/23 | 3,516 |
For year ended 12/31/24 | 2,977 |
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, 2019 and 2018, 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 The weighted average amortization period for core deposit, customer lists and total intangibles was 3.58, 5.27 and 4.33, respectively, at December 31, 2019.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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