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Note 2 - Acquisition - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Mar. 07, 2022
May 31, 2021
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 01, 2021
Dec. 31, 2020
Goodwill, Ending Balance     $ 202,524,000 $ 135,830,000 $ 202,524,000 $ 135,830,000 $ 135,830,000 $ 202,524,000 $ 136,529,000   $ 12,513,000
Consideration paid         30,994,000 28,276,000          
Total consideration paid         167,913,000 232,946,000          
Goodwill     0 $ 0 66,694,000 $ 124,016,000          
Commonwealth [Member]                      
Mortgage loans held for sale $ 3,559,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities [1] 246,793,000                    
Federal Home Loan Bank stock, at cost 4,436,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross 632,404,000                    
Allowance for credits losses on loans (9,950,000)                 $ (9,950,000)  
Net loans 622,454,000                    
Premises and equipment, net 32,793,000                    
Accrued interest receivable 1,973,000                    
Goodwill, Ending Balance 67,000,000   66,694,000   66,694,000   0        
Mortgage servicing rights 12,676,000                    
Deferred income taxes, net (3,727,000)                    
Other assets 8,324,000                    
Total assets acquired 1,336,815,000                    
Non-interest bearing 302,098,000                    
Interest bearing 818,705,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits 1,120,803,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement 66,220,000                    
Subordinated debentures 26,012,000                    
Line of credit 3,200,000                    
Accrued interest payable 243,000                    
Other liabilities 19,118,000                    
Total liabilities assumed 1,235,596,000                    
Net assets acquired 101,219,000                    
Consideration for common stock 133,825,000                    
Consideration paid 30,994,000                    
Noncontrolling interest of acquired entity 3,094,000                    
Total consideration paid 167,913,000                    
Goodwill 66,694,000                    
Deferred income taxes, net 3,727,000                    
Commonwealth [Member] | Core Deposits [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 12,724,000                    
Commonwealth [Member] | Customer Lists [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 14,360,000                    
Commonwealth [Member] | Cash [Member]                      
Cash and due from banks 380,450,000                    
Commonwealth [Member] | As Recorded By Acquiree [Member]                      
Mortgage loans held for sale 3,559,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities [1] 247,209,000                    
Federal Home Loan Bank stock, at cost 4,436,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross 645,551,000                    
Allowance for credits losses on loans (16,102,000)                 (16,102)  
Net loans 629,449,000                    
Premises and equipment, net 28,784,000                    
Accrued interest receivable 1,973,000                    
Goodwill, Ending Balance 5,412,000                    
Mortgage servicing rights 9,387,000                    
Deferred income taxes, net 0                    
Other assets 9,389,000                    
Total assets acquired 1,320,048,000                    
Non-interest bearing 302,098,000                    
Interest bearing 818,334,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits 1,120,432,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement 66,220,000                    
Subordinated debentures 26,806,000                    
Line of credit 3,200,000                    
Accrued interest payable 243,000                    
Other liabilities 17,822,000                    
Total liabilities assumed 1,234,723,000                    
Net assets acquired 85,325,000                    
Deferred income taxes, net (0)                    
Commonwealth [Member] | As Recorded By Acquiree [Member] | Core Deposits [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 0                    
Commonwealth [Member] | As Recorded By Acquiree [Member] | Customer Lists [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 0                    
Commonwealth [Member] | As Recorded By Acquiree [Member] | Cash [Member]                      
Cash and due from banks 380,450,000                    
Commonwealth [Member] | As Adjusted By Acquirer [Member]                      
Mortgage loans held for sale [2] 0                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities [1],[2],[3] (416,000)                    
Federal Home Loan Bank stock, at cost [2] 0                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross [2],[4] (13,147,000)                    
Allowance for credits losses on loans 6,152,000 [2],[5]                 (6,152,000)  
Net loans [2] (6,995,000)                    
Premises and equipment, net [2],[6] 4,009,000                    
Accrued interest receivable [2] 0                    
Goodwill, Ending Balance [2],[7] (5,412,000)                    
Mortgage servicing rights [2],[8] 3,289,000                    
Deferred income taxes, net [2],[9] (3,727,000)                    
Other assets [2],[10] (1,065,000)                    
Total assets acquired [2] 16,767,000                    
Non-interest bearing [2] 0                    
Interest bearing [2],[11] 371,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits [2] 371,000                    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement [2] 0                    
Subordinated debentures [2],[12] (794,000)                    
Line of credit [2] 0                    
Accrued interest payable [2] 0                    
Other liabilities [2],[13] 1,296,000                    
Total liabilities assumed [2] 873,000                    
Net assets acquired [2] 15,894,000                    
Deferred income taxes, net [2],[9] 3,727,000                    
Commonwealth [Member] | As Adjusted By Acquirer [Member] | Core Deposits [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles [2],[14] 12,724,000                    
Commonwealth [Member] | As Adjusted By Acquirer [Member] | Customer Lists [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles [2],[15] 14,360,000                    
Commonwealth [Member] | As Adjusted By Acquirer [Member] | Cash [Member]                      
Cash and due from banks [2] $ 0                    
Kentucky Bancshares [Member]                      
Mortgage loans held for sale   $ 3,071,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities   395,862,000                  
Federal Home Loan Bank stock, at cost   7,072,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross   755,175,000                  
Allowance for credits losses on loans   (6,757)               (6,757,000)  
Net loans   748,418,000                  
Premises and equipment, net   21,040,000                  
Accrued interest receivable   4,939,000                  
Goodwill, Ending Balance     $ 123,317,000   $ 123,317,000   123,317,000        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles   4,403,000                  
Mortgage servicing rights   1,662,000                  
Deferred income taxes, net   (2,341,000)                  
Other assets   4,485,000                  
Total assets acquired   1,266,010,000                  
Non-interest bearing   359,544,000                  
Interest bearing   679,674,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits   1,039,218,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement   11,360,000                  
Accrued interest payable   505,000                  
Other liabilities   14,227,000                  
Total liabilities assumed   1,156,381,000                  
Net assets acquired   109,629,000                  
Consideration for common stock   204,670,000                  
Consideration paid   28,276,000                  
Total consideration paid   232,946,000                  
Goodwill   123,317,000                  
Bank owned life insurance   18,909,000                  
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles [16],[17]   999,000                  
Other real estate owned   551,000                  
Deferred income taxes, net   2,341,000                  
Deferred income taxes, net [9],[17]   (230,000)                  
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Prepaid and Other Assets   (70,000) [17],[18]         (70,000)        
Total assets acquired, adjustment [17]   699,000                  
Federal Home Loan Bank advances   91,071,000                  
Kentucky Bancshares [Member] | Core Deposits [Member]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles   4,000,000                  
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles             $ 999,000        
Kentucky Bancshares [Member] | Cash [Member]                      
Cash and due from banks   53,257,000                  
Kentucky Bancshares [Member] | As Recorded By Acquiree [Member]                      
Mortgage loans held for sale   3,071,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities   396,157,000                  
Federal Home Loan Bank stock, at cost   7,072,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross   755,932,000                  
Allowance for credits losses on loans   (9,491)               (9,491,000)  
Net loans   746,441,000                  
Premises and equipment, net   27,401,000                  
Accrued interest receivable   4,939,000                  
Goodwill, Ending Balance   14,001,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles   0                  
Mortgage servicing rights   1,628,000                  
Deferred income taxes, net   (1,856,000)                  
Other assets   6,421,000                  
Total assets acquired   1,281,827,000                  
Non-interest bearing   359,544,000                  
Interest bearing   678,528,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits   1,038,072,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement   11,360,000                  
Accrued interest payable   505,000                  
Other liabilities   16,231,000                  
Total liabilities assumed   1,154,749,000                  
Net assets acquired   127,078,000                  
Bank owned life insurance   18,909,000                  
Other real estate owned   674,000                  
Deferred income taxes, net   1,856,000                  
Federal Home Loan Bank advances   88,581,000                  
Kentucky Bancshares [Member] | As Recorded By Acquiree [Member] | Cash [Member]                      
Cash and due from banks   53,257,000                  
Kentucky Bancshares [Member] | As Adjusted By Acquirer [Member]                      
Mortgage loans held for sale [17]   0                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities [17],[19]   (295,000)                  
Federal Home Loan Bank stock, at cost [17]   0                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans, Gross   (757,000) [17],[20]               (757,000)  
Allowance for credits losses on loans   2,734 [17],[21]               $ (2,734,000)  
Net loans [17]   1,977,000                  
Premises and equipment, net [6],[17]   (6,361,000)                  
Accrued interest receivable [17]   0                  
Goodwill, Ending Balance [17],[22]   (14,001,000)                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles [16],[17]   3,404,000                  
Mortgage servicing rights [17],[23]   34,000                  
Deferred income taxes, net [9],[17]   (715,000)                  
Other assets [17],[18]   (1,866,000)                  
Total assets acquired [17]   (16,516,000)                  
Non-interest bearing [17]   0                  
Interest bearing [11],[17]   1,146,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits [17]   1,146,000                  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Securities Sold under Repurchase Agreement [17]   0                  
Accrued interest payable [17]   0                  
Other liabilities [17],[24]   (2,004,000)                  
Total liabilities assumed [17]   1,632,000                  
Net assets acquired [17]   (18,148,000)                  
Bank owned life insurance [17]   0                  
Other real estate owned [17],[25]   (123,000)                  
Deferred income taxes, net [9],[17]   715,000                  
Federal Home Loan Bank advances [17],[26]   2,490,000                  
Kentucky Bancshares [Member] | As Adjusted By Acquirer [Member] | Cash [Member]                      
Cash and due from banks [17]   $ 0                  
[1] As of acquisition date, securities with a fair value of $162 million were classified by Bancorp as HTM.
[2] See the following page for explanations for individual fair value adjustments
[3] Adjustment to investment securities based on Bancorp’s evaluation of the acquired portfolio.
[4] Adjustments to loans to reflect estimated fair value adjustments, including the following: (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 )
[5] The net adjustment to allowance for credit losses includes the following: (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 )
[6] Adjustment to premises and equipment to reflect the estimated fair value of acquired premises and equipment and right of use assets.
[7] Elimination of the historical CB goodwill.
[8] Adjustment to reflect the estimated fair value of MSRs.
[9] Adjustment to net DTAs associated with the effects of the purchase accounting adjustments.
[10] Adjustment to other assets to reflect the estimated fair value of prepaid and other assets.
[11] Adjustment to deposits to reflect the estimated fair value of time deposits in interest rates, which was based on an analysis of market interest rates and maturity dates at the time of acquisition.
[12] Adjustment to reflect the estimated fair value of subordinated debentures for differences in interest rates, which was based primarily on an analysis of market interest rates and maturity dates at the time of acquisition.
[13] Adjustment to other liabilities to establish the reserve for unfunded loan commitments under CECL, operating lease liabilities and various accrual adjustments.
[14] Calculation of CDI related to the acquisition.
[15] Calculation of CLI related to the acquisition.
[16] Calculation of CDI related to the acquisition. During the third quarter of 2021, a provisional period adjustment of $999,000 was recorded based on revised inputs used in the CDI calculation.
[17] See the following page for explanations or individual fair value and provisional period adjustments.
[18] Adjustment to other assets to reflect the estimated fair value of prepaid and other assets. During the third quarter of 2021, a provisional period adjustment of $70,000 was recorded for the write off of miscellaneous mortgage servicing fees.
[19] Adjustment based on Bancorp’s evaluation of the acquired investment portfolio. Bancorp sold approximately $91 million in AFS debt securities shortly after acquisition.
[20] 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 )
[21] 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
[22] Elimination of the historical KB goodwill.
[23] Adjustment to reflect the estimated fair value of mortgage servicing rights.
[24] Adjustment to other liabilities to establish the reserve for unfunded loan commitments under CECL and various accrual adjustments.
[25] Adjustment to reflect the estimated fair value of other real estate owned.
[26] 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.