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Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Schedule of Intangible Assets and Goodwill The following table presents gross carrying value and accumulated amortization by major intangible asset class as of June 30, 2024 and December 31, 2023 (in thousands):

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Gross Carrying
Value

 

 

Accumulated
Amortization

 

 

Gross Carrying
Value

 

 

Accumulated
Amortization

 

Goodwill not subject to amortization

 

$

200,221

 

 

$

3,760

 

 

$

200,221

 

 

$

3,760

 

Intangibles from branch acquisition

 

 

3,015

 

 

 

3,015

 

 

 

3,015

 

 

 

3,015

 

Core deposit intangibles

 

 

79,945

 

 

 

39,995

 

 

 

79,945

 

 

 

34,966

 

Other intangibles

 

 

26,552

 

 

 

11,776

 

 

 

26,552

 

 

 

10,620

 

 

$

309,733

 

 

$

58,546

 

 

$

309,733

 

 

$

52,361

 
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 June 30, 2024, June 30, 2023 and December 31, 2023 (in thousands):

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

December 31, 2023

 

Beginning balance

 

$

6,859

 

 

$

331

 

 

$

331

 

Mortgage servicing rights acquired during period

 

 

—

 

 

 

—

 

 

 

7,070

 

Adjustment to valuation reserve

 

 

(13

)

 

 

—

 

 

 

(8

)

Mortgage servicing rights amortized

 

 

(652

)

 

 

(28

)

 

 

(524

)

Interest only strip

 

 

(4

)

 

 

(4

)

 

 

(10

)

Ending balance

 

$

6,190

 

 

$

299

 

 

$

6,859

 

 
Schedule of Intangible Assets Amortization Expense

Total amortization expense for three and six months ended June 30, 2024 and 2023 was as follows (in thousands):

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Core deposit intangibles

 

$

2,475

 

 

$

1,010

 

 

$

5,029

 

 

$

2,059

 

Customer list intangibles

 

 

577

 

 

 

456

 

 

 

1,156

 

 

 

912

 

Mortgage servicing rights

 

 

288

 

 

 

11

 

 

 

652

 

 

 

28

 

 

 

$

3,340

 

 

$

1,477

 

 

$

6,837

 

 

$

2,999

 
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 01/01/24 - 06/30/24

 

$

6,837

 

Estimated amortization expense:

 

 

 

For period 07/01/24 - 12/31/24

 

 

6,472

 

For year ended 12/31/25

 

 

11,989

 

For year ended 12/31/26

 

 

10,402

 

For year ended 12/31/27

 

 

9,182

 

For year ended 12/31/28

 

 

8,014

 
Purdum, Gray, Ingledue, Beck, Inc.  
Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded The followingprovides a reconciliation of the purchase price paid for Purdum, Gray, Ingledue, Beck, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price

 

 

 

$

10,145

 

Less purchase accounting adjustments:

 

 

 

 

 

Insurance Company intangible

$

5,770

 

 

 

 

Other liabilities

 

(1,576

)

 

 

 

 

 

 

 

4,194

 

 

 

 

 

$

5,951

 
Blackhawk Bancorp, 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 Blackhawk and the amount of goodwill recorded (in thousands):

Unallocated purchase price

 

 

 

$

26,955

 

Less purchase accounting adjustments:

 

 

 

 

 

Fair value of securities

$

(25,521

)

 

 

 

Fair value of loans, net

 

(43,477

)

 

 

 

Fair value of premises and equipment

 

(3,856

)

 

 

 

Fair value of time deposits

 

2,311

 

 

 

 

Fair value of subordinated and jr subordinated debentures

 

3,707

 

 

 

 

Increase in core deposit intangible

 

33,731

 

 

 

 

Increase in mortgage servicing rights

 

3,344

 

 

 

 

Other assets

 

6,619

 

 

 

 

 

 

 

 

(23,142

)

 

 

 

$

50,097