Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

On April 1, 2017, we completed the acquisition of FCB and acquired intangible assets of $10.9 million and recorded $4.3 million of goodwill. On October 1, 2016, we completed the acquisition of HCB and acquired intangible assets of $1.6 million and recorded $4.8 million of goodwill. See Note 3 Acquisitions for additional information.

Goodwill and certain other intangible assets with indefinite useful lives are not amortized into net income over an estimated life, but rather are tested at least annually for impairment. Intangible assets determined to have definite useful lives are amortized over their estimated useful lives and also are subject to impairment testing.

Effective July 1, 2017, we early adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test

for Goodwill Impairment which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from

the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The adoption of ASU 2017-04 had no impact on our consolidated financial statements.

During third quarter 2017, we performed the qualitative assessment of the goodwill of our community banking and insurance services reporting units and determined that the fair values of the reporting units were more likely than not greater than their carrying values. In performing the qualitative assessments, we considered certain events and circumstances specific to each reporting unit, such as macroeconomic conditions, industry and market considerations, overall financial performance and cost factors when evaluating whether it is more likely than not that the fair values of our community banking or insurance services reporting units are less than their carrying values. No indicators of impairment for either reporting unit were noted as of September 30, 2017.

The following table presents our goodwill activity by reporting unit for 2017.



	Goodwill Activity
Dollars in thousands	Community Banking		Insurance Services		Total
Balance, January 1, 2017	$	6,279	$	4,710	$	10,989
Reclassifications to goodwill	31		—		31
Acquired goodwill, net	4,252		—		4,252
Balance, December 31, 2017	$	10,562	$	4,710	$	15,272

In addition, at December 31, 2017 and December 31, 2016, we had $12.24 million and $2.66 million in unamortized identified intangible assets comprised of $11.27 million core deposit intangible and $900,000 customer intangible at December 31, 2017 and $1.56 million core deposit intangible and $1.1 million customer intangible at December 31, 2016.



	Other Intangible Assets
	December 31, 2017						December 31, 2016
Dollars in thousands	Community Banking		Insurance Services		Total		Community Banking		Insurances Services		Total
Identified intangible assets
Gross carrying amount	$	12,598	$	3,000	$	15,598	$	1,610	$	3,000	$	4,610
Less: accumulated amortization	1,257		2,100		3,357		47		1,900		1,947
Net carrying amount	$	11,341	$	900	$	12,241	$	1,563	$	1,100	$	2,663

Amortization relative to our identifed intangible assets is as follows:



	Core Deposit		Customer
Dollars in thousands	Intangible		Intangible
Actual:
2015	$	—	$	200
2016	47		200
2017	1,210		200
Expected:
2018	1,471		200
2019	1,368		200
2020	1,265		200
2021	1,162		200
2022	1,060		100

- 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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