Note 6 - Core Deposit and Customer List Intangible Assets

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

(6) Core Deposit and Customer List Intangible Assets

Bancorp recorded CDI assets of $13 million, $4 million, $2 million and $3 million in association with the acquisitions of CB in 2022, KB in 2021, KSB in 2019 and TBOC in 2013, respectively.

Changes in the net carrying amount of CDIs follows:

	Three months ended						Nine months ended
	September 30,						September 30,
(in thousands)	2022			2021			2022			2021
Balance at beginning of period	$	16,870		$	5,162		$	5,596		$	1,962
Core deposit intangible acquired		—			—			12,724			3,404
Provisional period adjustments		—			999			—			999
Amortization		(956	)		(290	)		(2,406	)		(494	)
Balance at end of period	$	15,914		$	5,871		$	15,914		$	5,871

As a result of the CB acquisition, Bancorp also recorded intangible assets totaling $14 million associated with the customer lists of the acquired WM&T and LFA businesses. Of this total, $12 million was recorded for WM&T and $2 million was recorded for Landmark. Similar to CDI assets, these intangibles also amortize over their estimated useful lives.

The carrying amount of the CLI assets follows:

	Three months ended					Nine months ended
	September 30,					September 30,
(in thousands)	2022			2021		2022			2021
Balance at beginning of period	$	13,487		$	-	$	-		$	-
Customer list intangibles acquired		—			—		14,360			—
Provisional period adjustments		—			—		—			—
Amortization		(654	)		—		(1,527	)		-
Balance at end of period	$	12,833		$	-	$	12,833		$	-

Future CDI and CLI amortization expense is estimated as follows:

(in thousands)	CDI		CLI
2022	$	956	$	654
2023		3,015		2,002
2024		2,686		1,823
2025		2,375		1,643
2026		2,063		1,464
2027		1,752		1,284
2028		1,339		1,105
2029		888		925
2030		576		745
2031		264		566
2032		-		387
2033		-		207
2034		-		28
Total future expense	$	15,914	$	12,833