Note 7 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

7

– GOODWILL AND INTANGIBLE ASSETS

The following table summarizes the Company’s acquired goodwill and intangible assets as of

December 31, 2019 (

in thousands):

	2019
	Gross Carrying Amount		Accumulated Amortization
Goodwill	$	6,252	$	—
Core deposit intangibles		2,500		—
Total	$	8,752	$	—

During

2019,

the Company recorded

$6.3

million of goodwill related to a branch acquisition transaction (see Note

23

). Goodwill represents the excess of the total purchase price paid over the fair value of the identifiable assets acquired, net of the fair value of the liabilities assumed. Goodwill is

not

amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value

may

not

be recoverable. Impairment exists when a reporting unit’s carrying amount exceeds its fair value. The Company has selected

November 30

as the date to perform the annual impairment test.

No

goodwill impairment charges were recorded in

2019.

Goodwill is the only intangible asset with an indefinite life on the Company’s balance sheet.

The core deposit intangible asset is amortized over a weighted average estimated life of the related deposits and is

not

estimated to have a significant residual value. The Company did

not

record any intangible amortization expense during

2019.

The estimated amortization expense of the core deposit intangible for the years ending

December 31

is as follows (in thousands):

	Amortization Expense
2020	$	256
2021		256
2022		256
2023		256
2024		256
Thereafter		1,220
	$	2,500