Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangibles

v3.19.3.a.u2
Goodwill and Other Intangibles
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles

Note 7 — 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 a leasing portfolio in 2016. The core deposit intangible 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, 2019

 

 

December 31, 2018

 

 

 

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

 

 

$

(1,567

)

 

$

646

 

 

$

2,213

 

 

$

(1,360

)

 

$

853

 

Third-party originators intangible

 

7 years

 

 

483

 

 

 

(287

)

 

 

196

 

 

 

483

 

 

 

(185

)

 

 

298

 

Goodwill

 

N/A

 

 

11,031

 

 

 

 

 

 

11,031

 

 

 

11,031

 

 

 

 

 

 

11,031

 

Total intangible assets

 

 

 

$

13,727

 

 

$

(1,854

)

 

$

11,873

 

 

$

13,727

 

 

$

(1,545

)

 

$

12,182

 

 

Intangible assets amortization expense for the years ended December 31, 2019, 2018 and 2017 was $309,000, $362,000 and $345,000, respectively, and estimated future amortization expense related to the Core Deposit Intangible and the third-party originators intangible for each of the next five years is as follows:

 

 

 

Amount

 

 

 

(in thousands)

 

2020

 

$

261

 

2021

 

 

216

 

2022

 

 

171

 

2023

 

 

126

 

2024

 

 

68

 

Thereafter

 

 

 

 

 

$

842

 

 

The Company performed its annual goodwill impairment analysis in the fourth quarter of 2019 and determined no impairment existed as of December 31, 2019. As of December 31, 2019, 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, 2019.