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Note 2 - Acquisition - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($)
3 Months Ended 9 Months Ended
Jun. 01, 2021
May 31, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Goodwill, Ending Balance     $ 135,830,000 $ 12,513,000 $ 135,830,000 $ 12,513,000 $ 136,529,000 $ 12,513,000 $ 12,513,000 $ 12,513,000
Consideration paid in acquisition         28,276,000        
Total consideration paid         232,946,000        
Goodwill     0 $ 0 124,016,000 $ 0        
Kentucky Bancshares [Member]                    
Mortgage loans held for sale $ 3,071,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities 395,862,000 $ 396,000,000                
Federal Home Loan Bank stock, at cost 7,072,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross 755,175,000 755,000,000                
Allowance for credits losses on loans (6,757,000)                  
Net loans 748,418,000                  
Premises and equipment, net 21,040,000                  
Bank owned life insurance 18,909,000                  
Accrued interest receivable 4,939,000                  
Goodwill, Ending Balance 0 123,000,000 123,000,000   $ 123,000,000          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 4,403,000                  
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles [1] 999,000                  
Other real estate owned 551,000                  
Mortgage servicing rights 1,662,000                  
Deferred income taxes, net 2,341,000                  
Deferred income taxes, net [2] (230,000)                  
Other assets 4,485,000                  
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Prepaid and Other Assets (70,000) [3]   $ (70,000)              
Total assets acquired 1,266,010,000                  
Total assets acquired, adjustment 699,000                  
Non-interest bearing 359,544,000                  
Interest bearing 679,674,000                  
Total deposits 1,039,218,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement 11,360,000 11,000,000                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Federal Home Loan Bank Advances 91,071,000 91,000,000                
Accrued interest payable 505,000                  
Other liabilities 14,227,000                  
Total liabilities assumed 1,156,381,000                  
Net assets acquired 109,629,000                  
Consideration for common stock 204,670,000                  
Consideration paid in acquisition 28,276,000                  
Total consideration paid 232,946,000 $ 233,000,000                
Goodwill 123,317,000                  
Kentucky Bancshares [Member] | Cash [Member]                    
Cash and due from banks 53,257,000                  
Kentucky Bancshares [Member] | As Recorded By Acquiree [Member]                    
Mortgage loans held for sale 3,071,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities 396,157,000                  
Federal Home Loan Bank stock, at cost 7,072,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross 755,932,000                  
Allowance for credits losses on loans (9,491,000)                  
Net loans 746,441,000                  
Premises and equipment, net 27,401,000                  
Bank owned life insurance 18,909,000                  
Accrued interest receivable 4,939,000                  
Goodwill, Ending Balance 14,001,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 0                  
Other real estate owned 674,000                  
Mortgage servicing rights 1,628,000                  
Deferred income taxes, net 1,856,000                  
Other assets 6,421,000                  
Total assets acquired 1,281,827,000                  
Non-interest bearing 359,544,000                  
Interest bearing 678,528,000                  
Total deposits 1,038,072,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement 11,360,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Federal Home Loan Bank Advances 88,581,000                  
Accrued interest payable 505,000                  
Other liabilities 16,231,000                  
Total liabilities assumed 1,154,749,000                  
Net assets acquired 127,078,000                  
Kentucky Bancshares [Member] | As Recorded By Acquiree [Member] | Cash [Member]                    
Cash and due from banks 53,257,000                  
Kentucky Bancshares [Member] | As Adjusted By Acquirer [Member]                    
Mortgage loans held for sale [4] 0                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities [4],[5] (295,000)                  
Federal Home Loan Bank stock, at cost [4] 0                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross [4],[6] (757,000)                  
Allowance for credits losses on loans [4],[7] (2,734,000)                  
Net loans [4] 1,977,000                  
Premises and equipment, net [4],[8] (6,361,000)                  
Bank owned life insurance [4] 0                  
Accrued interest receivable [4] 0                  
Goodwill, Ending Balance [4],[9] (14,001,000)                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles [1],[4] 3,404,000                  
Other real estate owned [4],[10] (123,000)                  
Mortgage servicing rights [4],[11] 34,000                  
Deferred income taxes, net [2],[4] 715,000                  
Other assets [3],[4] (1,866,000)                  
Total assets acquired [4] (16,516,000)                  
Non-interest bearing [4] 0                  
Interest bearing [4],[12] 1,146,000                  
Total deposits [4] 1,146,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement [4] 0                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Federal Home Loan Bank Advances [4],[13] 2,490,000                  
Accrued interest payable [4] 0                  
Other liabilities [4],[14] (2,004,000)                  
Total liabilities assumed [4] 1,632,000                  
Net assets acquired [4] (18,148,000)                  
Kentucky Bancshares [Member] | As Adjusted By Acquirer [Member] | Cash [Member]                    
Cash and due from banks [4] $ 0                  
[1] Calculation of core deposit intangible related to the acquisition. During the third quarter of 2021, a recast adjustment of $999,000 was recorded based on revised inputs used in the calculation of the CDI attributed to KB, resulting in an increased intangible value.
[2] Adjustment to net deferred tax assets associated with the effects of the purchase accounting adjustments.
[3] Adjustment to other assets to reflect the estimated fair value of prepaid and other assets. During the third quarter of 2021, a recast adjustment of $70,000 was recorded for the write off of miscellaneous mortgage servicing fees accrued in other assets by KB at acquisition, resulting in a reduction to other assets.
[4] See the following page for explanations or individual fair value adjustments.
[5] Adjustment based on Bancorp’s evaluation of the acquired investment portfolio. Approximately $91 million in AFS debt securities were sold by Bancorp shortly after acquisition.
[6] Adjustments to loans to reflect estimated fair value adjustments, including the following: (in thousands) Fair value adjustment - acquired non PCD loans $ 228 Fair value adjustment - acquired PCD loans (735) Eliminate unrecognized loan fees on acquired loans and fair value hedge (250) Net loan fair value adjustments $ (757)
[7] On January 1, 2020, Stock Yards Bancorp adopted ASC 326, “Financial Instruments – Credit Losses,” which required that loans held for investment be accounted for under the CECL framework. In accordance with ASC 326, “Financial Instruments – Credit Losses,” Kentucky Bancshares was not required to adopt CECL as of January 1, 2020. The net adjustment to allowance for credit losses includes the following: (in thousands) Reversal of historical KB allowance for credit losses on loans $ 9,491 Estimate of lifetime credit losses for PCD loans (6,757) Net change in allowance for credit losses $ 2,734
[8] Adjustment to premises and equipment to reflect the estimated fair value of acquired premises and equipment and right of use assets.
[9] Elimination of the historical KB goodwill of $14.0 million at the closing date.
[10] Adjustment to reflect the estimated fair value of other real estate owned.
[11] Adjustment to reflect the estimated fair value of mortgage servicing rights.
[12] Adjustment to deposits to reflect the estimated fair value of time deposits in interest rates, which was based primarily on an analysis of current market interest rates and maturity dates.
[13] Adjustment to reflect the estimated fair value of Federal Home Loan Bank advances for differences in interest rates, which was based primarily on an analysis of current market interest rates and maturity dates. All KB FHLB advances were paid off immediately upon acquisition.
[14] Adjustment to other liabilities to establish the reserve for unfunded loan commitments under CECL and various accrual adjustments.