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Note 9 - Goodwill and Core Deposit Intangible - Net
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

9.

GOODWILL AND CORE DEPOSIT INTANGIBLE - NET


Goodwill represents the excess of the cost over the fair value of net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment at least annually and updated quarterly if necessary. At December 31, 2014, goodwill consisted of $25.7 million related to the FNSC acquisition. This goodwill is not deductible for tax purposes. The Company’s core deposit intangible is related to the core deposit premiums of First National and Heritage Bank. These core deposit intangibles are amortized on a straight line basis over their estimated lives ranging from 12 to 13 years.


Changes in the carrying amount and accumulated amortization of the Company’s core deposit intangible for the year ended December 31, 2014 was as follows (in thousands):


   

2014

 
         

Balance—beginning of period

  $ --  
         

FNSC merger

    7,677  

Amortization expense

    (339 )
         

Balance—end of period

  $ 7,338  


The Company’s projected amortization expense is approximately $625,000 in each of the years ending December 31, 2015 through 2019, and $4.2 million thereafter.