Note 2 - Acquisition (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

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

	As Recorded			Fair Value				Provisional Period		As Recorded
(in thousands)	By CB			Adjustments (1)				Adjustments (1)		by Bancorp
Assets aquired:
Cash and due from banks	$	380,450		$	—			$	—	$	380,450
Mortgage loans held for sale		3,559			—				—		3,559
Available for sale debt securities (2)		247,209			(416	)	a		—		246,793
Federal Home Loan Bank stock, at cost		4,436			—				—		4,436
Loans		645,551			(13,147	)	b		—		632,404
Allowance for credits losses on loans		(16,102	)		6,152		c		—		(9,950	)
Net loans		629,449			(6,995	)			—		622,454
Premises and equipment, net		28,784			4,009		d		—		32,793
Accrued interest receivable		1,973			—				—		1,973
Goodwill		5,412			(5,412	)	e		—		—
Core deposit intangible		—			12,724		f		—		12,724
Customer list intangibles		—			14,360		g		—		14,360
Mortgage servicing rights		9,387			3,289		h		—		12,676
Deferred income taxes, net		—			(3,727	)	i		—		(3,727	)
Other assets		9,389			(1,065	)	j		—		8,324
Total assets acquired	$	1,320,048		$	16,767			$	-	$	1,336,815
Liabilities assumed:
Deposits:
Non-interest bearing	$	302,098		$	—			$	—	$	302,098
Interest bearing		818,334			371		k		—		818,705
Total deposits		1,120,432			371				—		1,120,803
Securities sold under agreements to repurchase		66,220			—				—		66,220
Subordinated debentures		26,806			(794	)	l		—		26,012
Line of credit		3,200			—				—		3,200
Accrued interest payable		243			—				—		243
Other liabilities		17,822			1,296		m		—		19,118
Total liabilities assumed		1,234,723			873				—		1,235,596
Net assets acquired	$	85,325		$	15,894			$	-	$	101,219
Consideration for common stock										$	133,825
Cash consideration paid											30,994
Noncontrolling interest of acquired entity											3,094
Total consideration										$	167,913
Goodwill										$	66,694

	As Recorded			Fair Value				Provisional Period				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	$	(9,216	)
Fair value adjustment - acquired PCD loans		(4,094	)
Eliminate unrecognized loan fees on acquired loans and fair value hedge		163
Net loan fair value adjustments	$	(13,147	)

(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 CB allowance for credit losses on loans	$	(16,102	)
Estimate of lifetime credit losses for PCD loans		9,950
Net change in allowance for credit losses	$	(6,152	)

(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, 2022		Three months ended September 30, 2021
Net interest income	$	62,376	$	53,473
Provision for credit losses (1)		4,803		(1,525	)
Non-interest income		24,864		38,094
Non-interest expense (2)		44,873		50,414
Income before taxes		37,564		42,678
Income tax expense		9,024		9,803
Net income		28,540		32,875
Less net income attributed to noncontrolling interest		85		90
Net income available to stockholders	$	28,455	$	32,785
Earnings per share
Basic	$	0.98	$	1.13
Diluted		0.97		1.13
Basic weighted average shares outstanding		29,144		29,049
Diluted weighted average shares outstanding		29,404		29,031

(in thousands)	Nine months ended September 30, 2022		Nine months ended September 30, 2021
Net interest income	$	173,153	$	164,579
Provision for credit losses (1)		2,453		(5,767	)
Non-interest income		68,947		97,524
Non-interest expense (2)		136,837		153,407
Income before taxes		102,810		114,463
Income tax expense		23,038		23,380
Net income		79,772		91,083
Less net income attributed to noncontrolling interest		244		264
Net income available to stockholders	$	79,528	$	90,819
Earnings per share
Basic	$	2.73	$	3.10
Diluted		2.71		3.10
Basic weighted average shares outstanding		29,110		29,291
Diluted weighted average shares outstanding		29,371		29,272

(in thousands)	Three months ended September 30, 2021
Net interest income	$	45,483
Provision for credit losses		(1,525	)
Non-interest income		17,614
Non-interest expense		34,558
Income before taxes		30,064
Income tax expense		6,902
Net income		23,162
Less net income attributed to noncontrolling interest		-
Net income available to stockholders	$	23,162
Earnings per share
Basic	$	0.87
Diluted		0.87
Basic weighted average shares outstanding		26,485
Diluted weighted average shares outstanding		26,726

(in thousands)	Nine months ended September 30, 2021
Net interest income	$	139,526
Provision for credit losses (1)		(6,067	)
Non-interest income		53,704
Non-interest expense (2)		106,361
Income before taxes		92,936
Income tax expense		18,881
Net income		74,055
Less net income attributed to noncontrolling interest		-
Net income available to stockholders	$	74,055
Earnings per share
Basic	$	2.79
Diluted		2.77
Basic weighted average shares outstanding		26,532
Diluted weighted average shares outstanding		26,773