Note 7 - Intangible Assets

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note

7:

Intangible Assets

The Company recorded

$1.4

million of goodwill as a result of its

2018

Hometown acquisition. Goodwill is tested annually, or more often if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are

not

recognized in the financial statements. Goodwill impairment was neither indicated nor recorded during the

three

months ended

March 31, 2020.

Goodwill amounts are

not

deductible for tax purposes.

Also as part of the Hometown acquisition, core deposit premiums of

$3.5

million were recorded. Core deposit premiums are amortized over a

seven

year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value.

The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) at

March 31, 2020

and

December 31, 2019

were as follows:   

	March 31,			December 31,
	2020			2019
	(in Thousands)			(in Thousands)
Goodwill	$	1,435		$	1,435
Core deposit intangible
Gross carrying amount		3,520			3,520
Accumulated amortization		(1,135	)		(1,016	)
Core deposit intangible, net		2,385			2,504
Remaining balance	$	3,820		$	3,939

The Company’s estimated remaining amortization expense on intangibles as of

March 31, 2020

is as follows:

	Amortization Expense
	(in Thousands)
Remainder of:	2020	$	358
	2021		477
	2022		477
	2023		477
	2024		477
	Therafter		119
	Total	$	2,385