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Note 2 - Acquisition - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 01, 2021
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Dec. 31, 2019
Goodwill, Ending Balance   $ 136,529 $ 12,513 $ 136,529 $ 12,513 $ 12,513 $ 12,513 $ 12,513 $ 12,513
Consideration paid in acquisition       28,276        
Total consideration paid       232,946        
Goodwill   124,016 $ 0 124,016 $ 0        
Kentucky Bancshares [Member]                  
Mortgage loans held for sale $ 3,071                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities 395,862                
Federal Home Loan Bank stock, at cost 7,072                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross 755,175                
Allowance for credits losses on loans (6,757)                
Net loans 748,418                
Premises and equipment, net 21,040                
Bank owned life insurance 18,909                
Accrued interest receivable 4,939                
Goodwill, Ending Balance 0 124,000   $ 124,000          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 3,404                
Other real estate owned 551                
Mortgage servicing rights 1,662                
Deferred income taxes, net 2,571                
Other assets 4,555                
Total assets acquired 1,265,311                
Non-interest bearing 359,544                
Interest bearing 679,674                
Total deposits 1,039,218                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement 11,360                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Federal Home Loan Bank Advances 91,071                
Accrued interest payable 505                
Other liabilities 14,227                
Total liabilities assumed 1,156,381                
Net assets acquired 108,930                
Consideration for common stock 204,670                
Consideration paid in acquisition 28,276                
Total consideration paid 232,946 $ 233,000              
Goodwill 124,016                
Kentucky Bancshares [Member] | Cash [Member]                  
Cash and due from banks 53,257                
Kentucky Bancshares [Member] | As Recorded By Acquiree [Member]                  
Mortgage loans held for sale 3,071                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities 396,157                
Federal Home Loan Bank stock, at cost 7,072                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross 755,932                
Allowance for credits losses on loans (9,491)                
Net loans 746,441                
Premises and equipment, net 27,401                
Bank owned life insurance 18,909                
Accrued interest receivable 4,939                
Goodwill, Ending Balance 14,001                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 0                
Other real estate owned 674                
Mortgage servicing rights 1,628                
Deferred income taxes, net 1,856                
Other assets 6,421                
Total assets acquired 1,281,827                
Non-interest bearing 359,544                
Interest bearing 678,528                
Total deposits 1,038,072                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement 11,360                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Federal Home Loan Bank Advances 88,581                
Accrued interest payable 505                
Other liabilities 16,231                
Total liabilities assumed 1,154,749                
Net assets acquired 127,078                
Kentucky Bancshares [Member] | As Recorded By Acquiree [Member] | Cash [Member]                  
Cash and due from banks 53,257                
Kentucky Bancshares [Member] | As Adjusted By Acquirer [Member]                  
Mortgage loans held for sale [1] 0                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities [1],[2] (295)                
Federal Home Loan Bank stock, at cost [1] 0                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross [1],[3] (757)                
Allowance for credits losses on loans [1],[4] (2,734)                
Net loans [1] 1,977                
Premises and equipment, net [1],[5] (6,361)                
Bank owned life insurance [1] 0                
Accrued interest receivable [1] 0                
Goodwill, Ending Balance [1],[6] (14,001)                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles [1],[7] 3,404                
Other real estate owned [1],[8] (123)                
Mortgage servicing rights [1],[9] 34                
Deferred income taxes, net [1],[10] 715                
Other assets [1],[11] (1,866)                
Total assets acquired [1] (16,516)                
Non-interest bearing [1] 0                
Interest bearing [1],[12] 1,146                
Total deposits [1] 1,146                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement [1] 0                
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Federal Home Loan Bank Advances [1],[13] 2,490                
Accrued interest payable [1] 0                
Other liabilities [1],[14] (2,004)                
Total liabilities assumed [1] 1,632                
Net assets acquired [1] (18,148)                
Kentucky Bancshares [Member] | As Adjusted By Acquirer [Member] | Cash [Member]                  
Cash and due from banks [1] $ 0                
[1] See the following page for explanations or individual fair value adjustments.
[2] 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.
[3] 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)
[4] 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
[5] Adjustment to premises and equipment to reflect the estimated fair value of acquired premises and equipment and right of use assets.
[6] Elimination of the historical KB goodwill of $14.0 million at the closing date.
[7] Calculation of core deposit intangible related to the acquisition.
[8] Adjustment to reflect the estimated fair value of other real estate owned.
[9] Adjustment to reflect the estimated fair value of mortgage servicing rights.
[10] Adjustment to net deferred tax assets associated with the effects of the purchase accounting adjustments.
[11] Adjustment to other assets to reflect the estimated fair value of prepaid and other assets.
[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.