XML 36 R25.htm IDEA: XBRL DOCUMENT

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Intangible Assets and Goodwill

The following table presents gross carrying value and accumulated amortization by major intangible asset class as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021				December 31, 2020
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization (effective 1/1/02)	$	115,613	$	3,760	$	108,752	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		39,344		23,181		32,355		20,910
Other intangibles		20,561		6,376		16,389		5,222
	$	178,533	$	36,332	$	160,511	$	32,907

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 September 30, 2021, September 30, 2020 and December 31, 2020 (in thousands):

	September 30, 2021			September 30, 2020			December 31, 2020
Beginning balance	$	516		$	1,444		$	1,444
Fair market value adjustment		474			(328	)		(273	)
Mortgage servicing rights amortized		(528	)		(415	)		(593	)
Interest only strip		(7	)		(40	)		(62	)
Ending balance	$	455		$	661		$	516

Schedule of Intangible Assets Amortization Expense

Total amortization expense for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Core deposit intangibles	$	809	$	804	$	2,247	$	2,468
Customer list intangibles		432		326		1,154		979
Mortgage servicing rights		173		147		528		415
	$	1,414	$	1,277	$	3,929	$	3,862

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):

Aggregate amortization expense:
For period 01/01/21-9/30/21	$	3,929
Estimated amortization expense:
For period 10/01/21-12/31/21		2,729
For year ended 12/31/22		5,119
For year ended 12/31/23		4,680
For year ended 12/31/24		4,292
For year ended 12/31/25		3,861
For year ended 12/31/26		3,091

LINCO Bancshares, Inc.

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				$	12,248
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		3,293
Other liabilities		(184	)
					6,799
				$	5,449