Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Note (6)—Goodwill and intangible assets:

The following table summarizes changes in goodwill during the nine months ended September 30, 2017. There was no such activity during the nine months ended September 30, 2016.

	Goodwill
Balance at December 31, 2016	$	46,867
Addition from merger with Clayton Banks (see Note 2)		92,043
Balance at September 30, 2017	$	138,910

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 is written down to its implied fair value. Subsequent increases in goodwill values are not recognized in the financial statements. Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2017 or the year ended December 31, 2016.

The change in balance for core deposit intangibles during the year is as follows:

	Core deposit intangible
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Beginning Balance	$	4,048		$	5,616		$	4,563		$	6,695
Addition from merger with Clayton Banks (see Note 2)		9,060			—			9,060			—
Less: amortization expense		(558	)		(526	)		(1,073	)		(1,605	)
Ending Balance	$	12,550		$	5,090		$	12,550		$	5,090

On July 31, 2017, the Company recorded $9,060 of core deposit intangibles resulting from the merger with the Clayton Banks, which is being amortized over a weighted average life of approximately 3 years. The estimated aggregate amortization expense of core deposit intangibles for each of the next five years and thereafter is as follows:

Remainder of 2017	$	754
December 31, 2018		2,780
December 31, 2019		2,394
December 31, 2020		2,008
December 31, 2021		1,622
Thereafter		2,992
	$	12,550

Additionally, the Company recognized an identifiable intangible asset related to favorable lease terms of $587 to be amortized into occupancy and equipment expense over the life of the lease, currently expected to be 6.5 years. Note 2 – “Mergers and acquisitions” includes additional discussion related to the goodwill and other intangibles recognized in the merger with the Clayton Bank.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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