Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 8—GOODWILL AND INTANGIBLE ASSETS

Goodwill associated with the Company’s recent purchases of Monitor in August 2017, Bowers in June 2016, NBOH in June 2015, Tri-State in October 2015 and other past acquisitions totaled $38.2 million at December 31, 2017 and $37.2 million at December 31, 2016. The Monitor, Bowers, NBOH and Tri-State acquisitions are more fully described in Note 2. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of the reporting units, including the existing goodwill and intangible assets, and estimating the fair value of the reporting units. When the carrying amount of a reporting unit exceeds its fair value, a second step to the impairment test is required. Step 2 requires that the implied fair value of the reporting unit’s goodwill be compared to the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. After our annual impairment analysis as of September 30, 2017, the Company determined the fair value of all goodwill exceeded its carrying amount.

Other Intangibles

Core deposit intangible assets associated with the Company’s purchases of Monitor, NBOH and Tri-State totaled $6.3 million.

Other intangible assets were as follows at year end:

	2017					2016
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Other intangible:
Customer relationship intangibles	$	7,210	$	(4,919	)	$	7,210	$	(4,253	)
Non-compete contracts		430		(376	)		430		(357	)
Trade Name		520		(175	)		520		(113	)
Core deposit intangible		6,254		(1,776	)		5,582		(1,029	)
Total	$	14,414	$	(7,246	)	$	13,742	$	(5,752	)

Aggregate amortization expense was $1.5 million for 2017 and 2016, and $983 thousand for 2015.

Estimated amortization expense for each of the next five years and thereafter:

2018	$	1,418
2019		1,306
2020		1,203
2021		1,142
2022		1,025
Thereafter		1,074
TOTAL	$	7,168

- 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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