Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Note (8)—Goodwill and intangible assets:

The following table summarizes changes in goodwill during the year ended December 31, 2017. There was no such activity during the year ended December 31, 2016.

	Goodwill
Balance at December 31, 2016	$	46,867
Addition from merger with Clayton Banks (see Note 2)		90,323
Balance at December 31, 2017	$	137,190

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 year ended December 31, 2017 or the year ended December 31, 2016.

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. Additionally, the Company recognized identifiable intangible assets related to favorable lease terms of $587, customer base trust intangible of $1,600, and manufactured housing servicing intangible of $1,088 as a result of the Clayton Banks acquisition. The following intangibles are being amortized over estimated lives of 6.5 years, 10 years, and 5 years respectively.

Core deposit and other intangibles are as follows as of the indicated dates:

	Core deposit and other intangibles
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
December 31, 2017
Core deposit intangible	$	38,915	$	(27,121	)	$	11,794
Leasehold intangible		587		(38	)		549
Customer base trust intangible		1,600		(67	)		1,533
Manufactured housing servicing intangible		1,088		(62	)		1,026
Total core deposit and other intangibles	$	42,190	$	(27,288	)	$	14,902

December 31, 2016
Core deposit intangible	$	29,855	$	(25,292	)	$	4,563

December 31, 2015
Core deposit intangible	$	29,855	$	(23,160	)	$	6,695

The estimated aggregate amortization expense of core deposit and other intangibles for each of the next five years and thereafter is as follows:

December 31, 2018	$	3,275
December 31, 2019		2,866
December 31, 2020		2,476
December 31, 2021		2,090
December 31, 2022		1,609
Thereafter		2,586
	$	14,902

- 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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