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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Intangible Assets and Goodwill

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, 2021 and 2020 (in thousands):

	2021				2020
	Gross Carrying		Accumulated		Gross Carrying		Accumulated
	Value		Amortization		Value		Amortization
Goodwill	$	115,613	$	3,760	$	108,752	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		39,435		24,085		32,355		20,910
Customer list intangibles		20,561		6,808		16,389		5,222
	$	178,624	$	37,668	$	160,511	$	32,907

Intangible Assets Mortgage Servicing Rights

The unpaid principal balance of mortgage loans serviced for others was $90.2 million and $126.8 million at December 31, 2021 and 2020, respectively. The following table summarizes the activity pertaining to the mortgage servicing rights included in intangible assets as of December 31, 2021 and 2020 (in thousands):

	December 31, 2021			December 31, 2020
Beginning balance	$	516		$	1,444
Valuation recovery		544			(273	)
Mortgage servicing rights amortized		(629	)		(593	)
I/O strip		(11	)		(62	)
Ending balance	$	420		$	516

Schedule of Intangible Assets Amortization Expense

Total amortization expense for the years ended December 31, 2021, 2020, and 2019 was as follows (in thousands):

	2021		2020		2019
Core deposit intangibles	$	3,176	$	3,164	$	3,729
Customer list intangibles		1,586		1,305		1,269
Mortgage servicing rights		629		593		850
	$	5,391	$	5,062	$	5,848

Schedule of Expected Amortization Expense

Estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):

For year ended 12/31/22	$	5,464
For year ended 12/31/23		4,804
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	)
Fair value of subordinated debentures	—
Core deposit intangible	2,025
Other assets	3,293
Other liabilities	(184	)
				6,799
Resulting goodwill from acquisition			$	5,449