Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022 and December 31, 2021 (in thousands):

	June 30, 2022				December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization (effective 1/1/02)	$	144,225	$	3,760	$	115,613	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		45,355		26,227		39,435		24,085
Other intangibles		20,561		7,672		20,561		6,808
	$	213,156	$	40,674	$	178,624	$	37,668

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, 2022, June 30, 2021 and December 31, 2021 (in thousands):

	June 30, 2022			June 30, 2021			December 31, 2021
Beginning balance	$	420		$	516		$	516
Fair market value adjustment		107			318			544
Mortgage servicing rights amortized		(149	)		(355	)		(629	)
Interest only strip		11			(6	)		(11	)
Ending balance	$	389		$	473		$	420

Schedule of Intangible Assets Amortization Expense

Total amortization expense for six months ended June 30, 2022 and 2021 was as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Core deposit intangibles	$	1,153	$	728	$	2,142	$	1,438
Customer list intangibles		432		389		864		722
Mortgage servicing rights		48		178		149		355
	$	1,633	$	1,295	$	3,155	$	2,515

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 01/01/22 - 06/30/22	$	3,155
Estimated amortization expense:
For period 07/01/22 - 12/31/22		3,165
For year ended 12/31/23		5,799
For year ended 12/31/24		5,291
For year ended 12/31/25		4,741
For year ended 12/31/26		3,852

Delta Bancshares Company

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 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		(623	)
Other liabilities		444
					1,180
				$	28,611

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):

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		3,293
Other liabilities		(184	)
					6,799
				$	5,449