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Goodwill and Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill The following table presents gross carrying value and accumulated amortization by major intangible asset class as of March 31, 2021 and December 31, 2020 (in thousands):

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

Goodwill not subject to amortization (effective 1/1/02)

 

$

117,708

 

 

$

3,760

 

 

$

108,752

 

 

$

3,760

 

Intangibles from branch acquisition

 

 

3,015

 

 

 

3,015

 

 

 

3,015

 

 

 

3,015

 

Core deposit intangibles

 

 

34,503

 

 

 

21,620

 

 

 

32,355

 

 

 

20,910

 

Other intangibles

 

 

16,779

 

 

 

5,555

 

 

 

16,389

 

 

 

5,222

 

 

 

$

172,005

 

 

$

33,950

 

 

$

160,511

 

 

$

32,907

 

 
Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded

 

The following table provides a reconciliation of the purchase price paid for the acquisition of LINCO and the amount of goodwill recorded (in thousands):

 

Unallocated purchase price

 

 

 

 

$

14,992

 

Less purchase accounting adjustments:

 

 

 

 

 

 

 

Fair value of securities

$

264

 

 

 

 

 

Fair value of loans, net

 

(2,818

)

 

 

 

 

Fair value of other real estate owned

 

915

 

 

 

 

 

Fair value of premises and equipment

 

6,360

 

 

 

 

 

Fair value of time deposits

 

(2,081

)

 

 

 

 

Fair value of FHLB advances

 

(975

)

 

 

 

 

Core deposit intangible

 

2,025

 

 

 

 

 

Other assets

 

2,530

 

 

 

 

 

Other liabilities

 

(184

)

 

 

 

 

 

 

 

 

 

 

6,036

 

 

 

 

 

 

$

8,956

 

 

 

 

 

 

 

 

 

 
Intangible Assets Mortgage Servicing Rights

The Company has mortgage servicing rights acquired in previous acquisitions. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of March 31, 2021, March 31, 2020 and December 31, 2020 (in thousands):

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

December 31, 2020

 

Beginning Balance

 

$

516

 

 

$

1,444

 

 

$

1,444

 

Valuation reserve

 

 

210

 

 

 

(18

)

 

 

(273

)

Mortgage servicing rights amortized

 

 

(177

)

 

 

(126

)

 

 

(593

)

Interest only Strip

 

 

2

 

 

 

(4

)

 

 

(62

)

Ending Balance

 

$

551

 

 

$

1,296

 

 

$

516

 
Schedule of Intangible Assets Amortization Expense

 

Total amortization expense for the three months ended March 31, 2021 and 2020 was as follows (in thousands):

 

 

 

Three months

ended March 31,

 

 

 

2021

 

 

2020

 

Core deposit intangibles

 

$

710

 

 

$

843

 

Customer list intangibles

 

 

333

 

 

 

326

 

Mortgage servicing rights

 

 

177

 

 

 

126

 

 

 

$

1,220

 

 

$

1,295

 
Schedule of Expected Amortization Expense

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):

30

 

 

Aggregate amortization expense:

 

 

 

 

For period 01/01/21-3/31/21

 

$

1,220

 

Estimated amortization expense:

 

 

 

 

For period 04/01/21-12/31/21

 

 

3,888

 

For year ended 12/31/22

 

 

3,885

 

For year ended 12/31/23

 

 

3,534

 

For year ended 12/31/24

 

 

3,234

 

For year ended 12/31/25

 

 

2,891

 

For year ended 12/31/26

 

 

2,215