Note 9 - Goodwill and Other Intangible Assets -

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 9 - Goodwill and Other Intangible Assets –

Goodwill was recorded as a result of acquisitions. The carrying amount of goodwill as of December 31, 2022 and 2021 was $88.5 million and $59.9 million, respectively. The increase of $28.6 in goodwill was the result of the acquisition of TCBI in 2022. In 2021, the increase of $6.0 million in goodwill was the result of the acquisition of SSW in 2021 which added $6.5 million, offset with $271,000 in adjustments from the Pedestal acquisition and the sale of the Oak Grove branch which also reduced goodwill in the amount of $168,000. The Company performed the required annual goodwill impairment test as of October 1, 2022. The Company’s annual test did not indicate any impairment as of the testing date. Following the testing date, management determined no triggering event had occurred though December 31, 2022.

Core deposit and customer intangible assets were acquired in conjunction with the business combinations. A summary of the core deposit and customer intangible assets as of December 31, 2022 and 2021 is as follows:

	2022			2021
	(Dollars in thousands)
Gross Carrying Amount	$	17,225		$	13,128
Acquired in SSW Acquisition		-			4,300
Adjustment for Sale of Branch		-			(203	)
Acquired in TCBI Acquisition		3,875			-
Less: Accumulated Amortization		(7,058	)		(5,022	)
Net Carrying Amount	$	14,042		$	12,203

Amortization expense on the core deposit and customer intangible assets totaled approximately $2.0 million, $1.6 million and $1.2 million during the years ended December 31, 2022, 2021 and 2020, respectively. The following table presents the estimated aggregate amortization expense for the periods indicated:

December 31,
	(Dollars in thousands)
2023	$	2,100
2024		2,100
2025		1,893
2026		1,824
2027		1,824
Thereafter		4,301
Total Core Deposit and Customer Intangible	$	14,042