Note 7 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

7. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company recorded

$7.4

million of goodwill as a result of its acquisition of TPB in

2018.

Goodwill impairment was neither indicated nor recorded during the year ended

December 31, 2018.

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 goodwill is written down to its implied fair value. Subsequent increases in goodwill value are

not

recognized in the consolidated financial statements. Goodwill totaled

$7.4

million as of

December 31, 2018.

There was

no

goodwill recorded as of

December 31, 2017.

Core deposit premiums are amortized over a

seven

-year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Core deposit premiums of

$2.0

million were recorded during the

third

quarter of

2018

as part of the TPB acquisition.

No

core deposit premiums were recorded as of

December 31, 2017.

The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) as of

December 31, 2018

were as follows:

	December 31, 2018
	(Dollars in Thousands)
Goodwill	$	7,435
Core deposit intangible:
Gross carrying amount		2,048
Accumulated amortization		(171	)
Core deposit intangible, net		1,877
Total	$	9,312

The Company’s estimated remaining amortization expense on intangibles as of

December 31, 2018

is as follows:

	Amortization Expense
	(Dollars in Thousands)
2019	$	488
2020		414
2021		341
2022		268
2023		195
2024		122
2025		49
Total	$	1,877

The net carrying amount of the Company’s core deposit premiums would

not

be considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition. That assessment is based on the carrying amount of the intangible assets subject to amortization at the date it is tested for recoverability. Intangible assets subject to amortization are tested by the Company for recoverability whenever events or change in circumstances indicate that its carrying amount

may

not

be recoverable.