Note 7 - Intangible Assets

9 Months Ended

Sep. 30, 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 September 30, 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 September 30, 2020 and December 31, 2019 were as follows:   

	September 30,			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		(1,374	)		(1,016	)
Core deposit intangible, net		2,146			2,504
Remaining balance	$	3,581		$	3,939

The Company’s estimated remaining amortization expense on intangibles as of September 30, 2020 is as follows:

	Amortization Expense
	(in Thousands)
Remainder of:	2020	$	119
	2021		477
	2022		477
	2023		477
	2024		477
	Therafter		119
	Total	$	2,146