Hanmi Financial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangibles

Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangibles

The third-party originators intangible of $483,000 and goodwill of $11.0 million were recorded as a result of the acquisition of the leasing portfolio in 2016. The CDI of $2.2 million was recognized for the core deposits acquired in a 2014 acquisition. The Company's intangible assets were as follows for the periods indicated:



		December 31, 2018							December 31, 2017
	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Core deposit intangible	10 years	$	2,213	$	(1,360	)	$	853	$	2,213	$	(1,119	)	$	1,094
Third-party originators intangible	7 years	483		(185		)	298		483		(64		)	419
Goodwill	N/A	11,031		—			11,031		11,031		—			11,031
Total intangible assets		$	13,727	$	(1,545	)	$	12,182	$	13,727	$	(1,183	)	$	12,544

Intangible assets amortization expense for the years ended December 31, 2018, 2017 and 2016 was $362,000, $345,000 and $326,000, respectively, and estimated future amortization expense related to the CDI and the third-party originators intangible for each of the next five years is as follows:



Year Ending December 31,	Amount
	(in thousands)
2019	$	309
2020	261
2021	216
2022	171
2023	125
Thereafter	69
Total	$	1,151

The Company performed its annual goodwill impairment analysis in the fourth quarter of 2018 and determined no impairment existed as of December 31, 2018. As of December 31, 2018, management was not aware of any circumstances that would indicate impairment of goodwill or other intangible assets. There were no impairment charges related to intangible assets recorded in earnings in the three years ended December 31, 2018.