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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2025
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, 2025 and December 31, 2024 (in thousands):
|  | March 31, 2025 |  |  | December 31, 2024 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Goodwill not subject to amortization |  | $ | 207,151 |  |  | $ | 3,760 |  |  | $ | 207,151 |  |  | $ | 3,760 |
Intangibles from branch acquisition |  |  | 3,015 |  |  |  | 3,015 |  |  |  | 3,015 |  |  |  | 3,015 |
Core deposit intangibles |  |  | 79,945 |  |  |  | 46,999 |  |  |  | 79,945 |  |  |  | 44,736 |
Other intangibles |  |  | 30,857 |  |  |  | 13,861 |  |  |  | 30,857 |  |  |  | 13,180 |
|  | $ | 320,968 |  |  | $ | 67,635 |  |  | $ | 320,968 |  |  | $ | 64,691 |
Core deposit intangibles are being amortized over a period of 10 years and other intangibles, primarily customer lists, are being amortized over periods ranging from 3 to 12 years. During the quarter ended September 30, 2024, goodwill of $6.9 million was recorded for the acquisition of the stock of Mid Rivers Insurance Group, Inc. (MRIG) in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for Mid Rivers Insurance Group, Inc. and the amount of goodwill recorded (in thousands):
Unallocated purchase price |  |  |  | $ | 10,059 |
Less purchase accounting adjustments: |  |  |  |  |
Insurance Company intangible | $ | 4,305 |  |  |  |
Other liabilities |  | (1,176 | ) |  |  |
|  |  |  |  | 3,129 |
|  |  |  | $ | 6,930 |
The Company has mortgage servicing rights acquired in previous acquisitions. Mortgage servicing rights are accounted for under the amortization method. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of March 31, 2025, March 31, 2024 and December 31, 2024 (in thousands):
|  | March 31, 2025 |  |  | March 31, 2024 |  |  | December 31, 2024 |
Beginning balance |  | $ | 5,629 |  |  | $ | 6,859 |  |  | $ | 6,859 |
Adjustment to valuation reserve |  |  | 1 |  |  |  | (33 | ) |  |  | 7 |
Mortgage servicing rights amortized |  |  | (287 | ) |  |  | (364 | ) |  |  | (1,226 | )
Interest only strip |  |  | (5 | ) |  |  | (3 | ) |  |  | (11 | )
Ending balance |  | $ | 5,338 |  |  | $ | 6,459 |  |  | $ | 5,629 |
Fair value of portfolio |  | $ | 6,500 |  |  | $ | 7,246 |  |  | $ | 6,716 |
Total amortization expense for three months ended March 31, 2025 and 2024 was as follows (in thousands):
|  | Three months ended |
|  | March 31, |
|  | 2025 |  |  | 2024 |
Core deposit intangibles |  | $ | 2,263 |  |  | $ | 2,554 |
Customer list intangibles |  |  | 681 |  |  |  | 579 |
Mortgage servicing rights |  |  | 287 |  |  |  | 364 |
|  | $ | 3,231 |  |  | $ | 3,497 |
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 01/01/25-03/31/25 |  | $ | 3,231 |
Estimated amortization expense: |  |  |
For period 04/01/25-12/31/25 |  |  | 9,079 |
For year ended 12/31/26 |  |  | 10,594 |
For year ended 12/31/27 |  |  | 9,330 |
For year ended 12/31/28 |  |  | 8,116 |
For year ended 12/31/29 |  |  | 6,764 |
In accordance with GAAP, the Company performed its annual goodwill impairment test as of September 30, 2024 and determined that, as of that date, goodwill was not impaired. The Company believes no test was considered necessary during the quarter ended March 31, 2025 due to the lack of triggering events or material changes to the value of the Company’s goodwill.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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