Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

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

Reconciliation of purchase price to goodwill recorded [Table Text Block]

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

Intangible Assets, Mortgage Servicing Rights [Table Text Block]

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

Schedule of Intangible Assets Amortization Expense [Table Text Block]

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

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

stimated 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