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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2023
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 5 -- 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 First Mid Wealth Management Company and First Mid Insurance. The following table presents gross carrying value and accumulated amortization by major intangible asset class as of March 31, 2023 and December 31, 2022 (in thousands):
|  | March 31, 2023 |  |  | December 31, 2022 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Goodwill not subject to amortization (effective 1/1/02) |  | $ | 144,172 |  |  | $ | 3,760 |  |  | $ | 144,172 |  |  | $ | 3,760 |
Intangibles from branch acquisition |  |  | 3,015 |  |  |  | 3,015 |  |  |  | 3,015 |  |  |  | 3,015 |
Core deposit intangibles |  |  | 45,355 |  |  |  | 29,481 |  |  |  | 45,355 |  |  |  | 28,432 |
Other intangibles |  |  | 20,782 |  |  |  | 9,007 |  |  |  | 20,782 |  |  |  | 8,551 |
|  | $ | 213,324 |  |  | $ | 45,263 |  |  | $ | 213,324 |  |  | $ | 43,758 |
During the first quarter of 2022, goodwill of $28.6 million was provisionally recorded for the acquisition and merger of Delta Bancshares Company. This goodwill was subsequently adjusted to $28.2 million to reflect proper tax treatment of the Delta assets and liabilities. All this goodwill was assigned to the banking unit of the Company. The following table provides a reconciliation of the purchase price paid for the acquisition of Delta and the amount of goodwill recorded (in thousands):
Unallocated purchase price |  |  |  | $ | 29,791 |
Less purchase accounting adjustments: |  |  |  |  |
Fair value of securities | $ | (2,836 | ) |  |  |
Fair value of loans, net |  | (3,399 | ) |  |  |
Fair value of premises and equipment |  | 3,508 |  |  |  |
Fair value of time deposits |  | (1,759 | ) |  |  |
Fair value of FHLB advances |  | (75 | ) |  |  |
Core deposit intangible |  | 5,920 |  |  |  |
Other assets |  | (570 | ) |  |  |
Other liabilities |  | 444 |  |  |  |
|  |  |  |  | 1,233 |
|  |  |  | $ | 28,558 |
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, 2023, March 31, 2022 and December 31, 2022 (in thousands):
|  | March 31, 2023 |  |  | March 31, 2022 |  |  | December 31, 2022 |
Beginning balance |  | $ | 331 |  |  | $ | 420 |  |  | $ | 420 |
Adjustment to valuation reserve |  |  | — |  |  |  | 106 |  |  |  | 108 |
Mortgage servicing rights amortized |  |  | (17 | ) |  |  | (101 | ) |  |  | (200 | )
Interest only strip |  |  | (2 | ) |  |  | 7 |  |  |  | 3 |
Ending balance |  | $ | 312 |  |  | $ | 432 |  |  | $ | 331 |
Total amortization expense for three months ended March 31, 2023 and 2022 was as follows (in thousands):
|  | Three months ended March 31, |
|  | 2023 |  |  | 2022 |
Core deposit intangibles |  | $ | 1,049 |  |  | $ | 989 |
Customer list intangibles |  |  | 456 |  |  |  | 432 |
Mortgage servicing rights |  |  | 17 |  |  |  | 101 |
|  | $ | 1,522 |  |  | $ | 1,522 |
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 01/01/23 - 03/31/23 |  | $ | 1,522 |
Estimated amortization expense: |  |  |
For period 04/01/23 - 12/31/23 |  |  | 5,862 |
For year ended 12/31/24 |  |  | 5,371 |
For year ended 12/31/25 |  |  | 4,736 |
For year ended 12/31/26 |  |  | 3,835 |
For year ended 12/31/27 |  |  | 3,254 |
In accordance with the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets,” codified within ASC 350, the Company performed testing of goodwill for impairment as of September 30, 2022 and determined that, as of that date, goodwill was not impaired. Management also concluded that the remaining amounts and amortization periods were appropriate for all intangible assets.

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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 https://asc.fasb.org/topic&trid=2144416 + Details
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