Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

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, 2021 and December 31, 2020 (in thousands):

	June 30, 2021				December 31, 2020
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization (effective 1/1/02)	$	116,533	$	3,760	$	108,752	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		34,503		22,371		32,355		20,910
Other intangibles		20,561		5,944		16,389		5,222
	$	174,612	$	35,090	$	160,511	$	32,907

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, 2021, June 30, 2020 and December 31, 2020 (in thousands):

	June 30, 2021			June 30, 2020			December 31, 2020
Beginning balance	$	516		$	1,444		$	1,444
Fair market value adjustment		318			(259	)		(273	)
Mortgage servicing rights amortized		(355	)		(268	)		(593	)
Interest only strip		(6	)		(17	)		(62	)
Ending balance	$	473		$	900		$	516

Schedule of Intangible Assets Amortization Expense

Total amortization expense for the three and six months ended June 30, 2021 and 2020 was as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Core deposit intangibles	$	728	$	821	$	1,438	$	1,664
Customer list intangibles		389		327		722		653
Mortgage servicing rights		178		142		355		268
	$	1,295	$	1,290	$	2,515	$	2,585

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 01/01/21-6/30/21	$	2,515
Estimated amortization expense:
For period 07/01/21-12/31/21		3,417
For year ended 12/31/22		4,268
For year ended 12/31/23		3,917
For year ended 12/31/24		3,617
For year ended 12/31/25		3,274
For year ended 12/31/26		2,592

BBM & Associates, Inc.

Schedule of Reconciliation of Purchase Price Paid for Acquisition and Goodwill Recorded

The following provides a reconciliation of the purchase price paid for BBM & Associates Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price	$	3,661
Less purchase accounting adjustments:
Insurance company intangibles		2,249
	$	1,412

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):

32

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	)
Core deposit intangible		2,025
Other assets		2,373
Other liabilities		(184	)
					5,879
				$	6,369