Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Note 11 – Goodwill and Intangible Assets

On October 17, 2017, the Wolverine acquisition resulted in goodwill of $26.8 million. On September 1, 2017, the Lafayette acquisition resulted in goodwill of $15.4 million. On November 7, 2016, the CNB acquisition resulted in goodwill of $609,000. On July 18, 2016, the LaPorte acquisition resulted in goodwill of $21.0 million. On June 1, 2016, the Kosciusko acquisition resulted in goodwill of $6.4 million.

No impairment loss was recorded in 2018 or 2017. The Company tested goodwill for impairment during 2018 and 2017. In both valuations, the fair value exceeded the Company’s carrying value, therefore, it was concluded goodwill is not impaired.

For additional details related to impairment testing, see the “Goodwill and Intangible Assets” section of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included as Item 7 of this Annual Report on Form 10K.

	December 31 2018		December 31 2017
Balance, January 1	$	119,880	$	76,941
Goodwill acquired		—		42,939
Balance, December 31	$	119,880	$	119,880

Goodwill acquired in 2017 includes a $

704

,000 measurement period adjustment related to the 2016 acquisition of LaPorte.

As a result of the acquisition of American Trust & Savings Bank in 2010; Heartland in 2012; Summit in 2014; Peoples in 2015; Kosciusko, LaPorte and CNB in 2016; and Lafayette and Wolverine in 2017; the Company has recorded certain amortizable intangible assets related to core deposit intangibles. These core deposit intangibles are being amortized over seven to ten years using an accelerated method.

Amortizable intangible assets are summarized as follows:

	December 31, 2018					December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets Core deposit intangible	$	20,711	$	(10,321	)	$	20,711	$	(8,309	)

Amortization expense for intangible assets totaled $2.0 million, $1.5 million, and $1.2 million for the years ended December 31, 2018, 2017 and 2016.

Estimated amortization for the years ending December 31 is as follows:

2019	$	1,787
2020		1,481
2021		1,394
2022		1,375
2023		1,281
Thereafter		3,072
	$	10,390