Note 2 - Acquisition (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	As Recorded			Fair Value				As Recorded
(in thousands)	By KB			Adjustments (1)				by Bancorp
Assets aquired:
Cash and due from banks	$	53,257		$	—			$	53,257
Mortgage loans held for sale		3,071			—				3,071
Available for sale debt securities		396,157			(295	)	a		395,862
Federal Home Loan Bank stock, at cost		7,072			—				7,072
Loans		755,932			(757	)	b		755,175
Allowance for credits losses on loans		(9,491	)		2,734		c		(6,757	)
Net loans		746,441			1,977				748,418
Premises and equipment, net		27,401			(6,361	)	d		21,040
Bank owned life insurance		18,909			—				18,909
Accrued interest receivable		4,939			—				4,939
Goodwill		14,001			(14,001	)	e		—
Core deposit intangible		—			3,404		f		3,404
Other real estate owned		674			(123	)	g		551
Mortgage servicing rights		1,628			34		h		1,662
Deferred income taxes, net		1,856			715		i		2,571
Other assets		6,421			(1,866	)	j		4,555
Total assets acquired	$	1,281,827		$	(16,516	)		$	1,265,311
Liabilities assumed:
Deposits:
Non-interest bearing	$	359,544		$	—			$	359,544
Interest bearing		678,528			1,146		k		679,674
Total deposits		1,038,072			1,146				1,039,218
Securities sold under agreements to repurchase		11,360			—				11,360
Federal Home Loan Bank advances		88,581			2,490		l		91,071
Accrued interest payable		505			—				505
Other liabilities		16,231			(2,004	)	m		14,227
Total liabilities assumed		1,154,749			1,632				1,156,381
Net assets acquired	$	127,078		$	(18,148	)		$	108,930
Consideration for common stock								$	204,670
Cash consideration paid									28,276
Total consideration								$	232,946
Goodwill								$	124,016

Schedule of Business Acquisitions by Acquisition, Loans Fair Value Adjustment [Table Text Block]

(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	)

Schedule of Business Acquisitions by Acquisition, Allowance for Credit Losses Adjustments [Table Text Block]

(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

Business Acquisition, Pro Forma Information [Table Text Block]

(in thousands)	Three months ended June 30, 2021			Three months ended June 30, 2020
Net interest income	$	47,465		$	42,664
Provision for loan losses (1)		(3,167	)		7,525
Non-interest income		18,078			16,621
Non-interest expense (2)		37,257			32,903
Income before taxes		31,453			18,857
Income tax expense		6,026			2,518
Net income	$	25,427		$	16,339
Earnings per share
Basic	$	0.95		$	0.62
Diluted		0.94			0.62
Basic weighted average shares outstanding		26,687			26,363
Diluted weighted average shares outstanding		26,926			26,542

(in thousands)	Six months ended June 30, 2021			Six months ended June 30, 2020
Net interest income	$	94,043		$	84,156
Provision for loan losses (1)		(4,542	)		15,075
Non-interest income		36,090			32,719
Non-interest expense (2)		71,803			65,864
Income before taxes		62,872			35,936
Income tax expense		11,979			4,716
Net income	$	50,893		$	31,220
Earnings per share
Basic	$	1.91		$	1.19
Diluted		1.89			1.18
Basic weighted average shares outstanding		26,670			26,341
Diluted weighted average shares outstanding		26,911			26,540