Note 9 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 9. Goodwill and Other Intangible Assets

Goodwill

The Company has one reporting unit for goodwill impairment testing purposes, Community Banking. In October 2018, the Company sold its remaining insurance agency assets to BI in exchange for an equity interest in BI. In connection with the divestiture, the Company recognized a one-time goodwill impairment charge of $1.49 million. The Company used the fair value of the equity interest in BI as the basis for determining the goodwill impairment. The Company performed its annual assessment of goodwill during the fourth quarter of 2020 and concluded that the carrying value of goodwill was not impaired. No events have occurred after the analysis to indicate potential impairment.

The following table presents the changes in goodwill, by reporting unit, during the periods indicated:

(Amounts in thousands)
Balance January 1, 2018	$	95,779
Dispositions		(1,543	)
Impairment Charges		(1,492	)
Balance December 31, 2018	$	92,744
Balance January 1, 2019	$	92,744
Acquisitions		36,821
Balance December 31, 2019	$	129,565
Balance January 1, 2020	$	129,565
Acquisitions and dispositions, net		—
Balance December 31, 2020	$	129,565

Other Intangible Assets

As of December 31, 2020, the remaining lives of core deposit intangibles ranged from 4 years to 10 years with a weighted average remaining life of 7 years. Other identifiable intangibles currently consist primarily of the value assigned to contractual rights arising from FCWM. The following table presents the components of other intangible assets as of the dates indicated:

	December 31,
	2020			2019			2018
(Amounts in thousands)
Core deposit intangibles	$	8,519		$	8,184		$	8,184
Acquisitions		—			4,490			—
Accumulated amortization		(1,450	)		(4,155	)		(3,158	)
Core deposit intangibles, net		7,069			8,519			5,026
Other identifiable intangibles		—			—			535
Accumulated amortization		—			—			(535	)
Other identifiable intangibles, net		—			—			—
Total other intangible assets, net	$	7,069		$	8,519		$	5,026

Amortization expense for other intangible assets was $1.45 million in 2020, $997 thousand in 2019, and $1.04 million in 2018.

The following schedule presents the estimated amortization expense for intangible assets, by year, as of December 31, 2020:

(Amounts in thousands)
2021	$	1,446
2022		1,446
2023		878
2024		856
2025		648
2026 and thereafter		1,795
Total estimated amortization expense	$	7,069