Note 6 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Intangible Assets

The following table summarizes the Corporation's acquired goodwill and intangible assets as of

December 31:

(Dollar amounts in thousands)	December 31, 2020				December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Goodwill	$	19,460	$	—	$	19,460	$	—
Core deposit intangibles		5,634		4,551		5,634		4,387
Total	$	25,094	$	4,551	$	25,094	$	4,387

The goodwill on the Corporation's financial statements resulted from

five

prior acquisitions.  Goodwill represents the excess of the total purchase price paid for the acquisitions over the fair value of the identifiable assets acquired, net of the fair value of the liabilities assumed.  Goodwill is

not

amortized, but is subject to impairment tests on an annual basis and more frequently if an event occurs or circumstances change that would more likely than

not

reduce the fair value of a reporting unit below its carrying amount.  As part of the Corporation's qualitative assessment of goodwill impairment, management considered the triggering event of the COVID-

19

pandemic and determined that significant change in the general economic environment and financial markets, including the Corporation's market capitalization, represented an interim impairment indicator requiring continued evaluation.  Management performed a quarterly qualitative assessment beginning with the onset of the pandemic, concluding

no

impairment.  Because of the economic uncertainty surrounding the pandemic, the Corporation engaged an independent

third

party to perform the annual,

November 30,

impairment testing, including the Step

0

and Step

1,

qualitative and quantitative analyses to determine the fair value of the Corporation.  Based on the analysis performed, the fair value of the Corporation's equity was

$89.0

million, which exceeded the recorded book value of

$87.4

million as of

November 30, 2020.

Management concluded that the Corporation's goodwill was

not

impaired as of

November 30, 2020. 

Although

no

goodwill impairment was noted, there can be

no

assurances that future goodwill impairment will

not

occur.  

No

goodwill impairment charges were recorded in

2020

 or

2019.

The core deposit intangible asset, resulting from

three

acquisitions, is amortized over a weighted average estimated life of the related deposits and is

not

estimated to have a significant residual value. The Corporation recorded intangible amortization expense totaling

$164,000

and

$176,000

in

2020

 and

2019,

respectively.

The estimated amortization expense of the core deposit intangible for the years ending

December 31 

is as follows:

(Dollar amounts in thousands)	Amortization
	Expense
2021	$	154
2022		149
2023		149
2024		149
2025		143
Thereafter		339
Total	$	1,083