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Note 10 - Goodwill and Other Intangibles

6 Months Ended

Jun. 30, 2021

Intangible Assets Disclosure [Text Block]

NOTE 10. GOODWILL AND OTHER INTANGIBLES

Goodwill and other intangibles, net consisted of the following at June 30, 2021 and December 31, 2020.

	June 30,			December 31,
(Amounts in thousands)	2021			2020
Goodwill and Other Intangibles:
Goodwill	$	11,671		$	11,671
Core deposit intangibles		6,125			6,125
Domain name		32			32
Accumulated amortization		(2,496	)		(2,113	)
Goodwill and other intangibles, net	$	15,332		$	15,715

Goodwill

Goodwill results from a business combination, and is calculated as the amount of consideration paid in excess of the fair value of the net assets acquired in a transaction. Goodwill is considered to have an indefinite life and is therefore not amortized. It is reviewed annually for impairment, or more frequently if required by circumstances known as triggering events. At June 30, 2021, goodwill totaled $11.7 million.

Core Deposit Intangibles

Acquired core deposits provide value as a source of below market rate funds and the realization of interest cost savings is a fundamental rationale for assuming these deposit liabilities. The cost savings is defined as the difference between the cost of funds on our new deposits (i.e., interest and net maintenance costs) and the cost of an equal amount of funds from an alternative source having a similar term as the new deposit base. Our core deposit intangibles were recorded at fair value which was derived using the income approach and represent the present value of the cost savings over the projected term of our new deposit base. The core deposit intangible is being amortized on a straight-line basis over an estimated eight-year life, and is evaluated annually for impairment.

The following table sets forth, as of June 30, 2021, the total estimated future amortization of intangible assets:

(Amounts in thousands)	Amount
Amortization:
2021	$	383
2022		766
2023		766
2024		581
2025		544
2026 and thereafter		589
Total	$	3,629