Note 2 - Acquisition (Tables)

9 Months Ended

Sep. 30, 2021

Notes Tables

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

	As Recorded			Fair Value				Recast				As Recorded
(in thousands)	By KB			Adjustments (1)				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		999		f		4,403
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		(230	)	i		2,341
Other assets		6,421			(1,866	)	j		(70	)	j		4,485
Total assets acquired	$	1,281,827		$	(16,516	)		$	699			$	1,266,010
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	)		$	699			$	109,629
Consideration for common stock												$	204,670
Cash consideration paid													28,276
Total consideration												$	232,946
Goodwill												$	123,317

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 September 30, 2021			Three months ended September 30, 2020
Net interest income	$	45,483		$	42,458
Provision for credit losses		(1,525	)		4,718
Non-interest income		17,614			17,188
Non-interest expense		34,558			35,238
Income before taxes		30,064			19,690
Income tax expense		6,902			1,907
Net income	$	23,162		$	17,783
Earnings per share
Basic	$	0.87		$	0.67
Diluted		0.87			0.67
Basic weighted average shares outstanding		26,485			26,385
Diluted weighted average shares outstanding		26,726			26,605

(in thousands)	Nine months ended September 30, 2021			Nine months ended September 30, 2020
Net interest income	$	139,526		$	126,614
Provision for credit losses (1)		(6,067	)		19,793
Non-interest income		53,704			49,907
Non-interest expense (2)		106,361			101,102
Income before taxes		92,936			55,626
Income tax expense		18,881			6,623
Net income	$	74,055		$	49,003
Earnings per share
Basic	$	2.79		$	1.86
Diluted		2.77			1.84
Basic weighted average shares outstanding		26,532			26,356
Diluted weighted average shares outstanding		26,773			26,562