Note 18 - Goodwill and Intangible Assets |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Text Block] |
Goodwill During 2015, the Company recorded initial goodwill of $20,639,000 associated with the Reunion acquisition. Changes to the carrying amount of goodwill during 2016 and 2015 are provided in the following table.
The adjustments to goodwill during 2016 resulted from the recognition of liabilities that existed as of the date on which we acquired Reunion but were not recorded and an adjustment for the actual cash received from Reunion’s final income tax returns. The adjustments were made following the Company’s review of additional information that existed at the time of acquisition that affected the recorded fair value of certain assets and liabilities. Net of deferred taxes, the adjustment resulted in an $85,000 increase to the amount of goodwill initially recorded in our acquisition of Reunion.The adjustments to goodwill made during 2015 resulted from revaluation of certain loans, write-down of fixed assets, prepaid assets, land and income tax-related accounts acquired through the acquisition of United. The adjustments were made as additional information that existed at the time of the acquisition was reviewed and determined to affect the recorded fair value of certain loans, fixed assets, prepaid assets, and income tax-related accounts. Net of deferred taxes, these adjustments resulted in a $1,571,000 increase to goodwill recorded in connection with the United acquisition.In addition, the goodwill recorded in the CBI acquisition was adjusted in 2015 due to information regarding the tax treatment of certain deferred revenue. This adjustment reduced recorded goodwill in the CBI acquisition by $358,000. These adjustments to goodwill had no impact on net earnings or shareholders’ equity of the Company during 2016 or 2015. Intangible Assets In addition to the goodwill recorded for Reunion and United, the Company recorded core deposit intangible assets of $1,539,000 and $1,776,000, respectively. The core deposit intangible asset for each acquisition will be amortized using an accelerated method over seven years. The aggregate amount of amortization expense for intangible assets during 2016, 2015 and 2014 was $756,000, $508,000 and $19,000, respectively. A summary of core deposit intangible assets as of December 31, 2016 and 2015 is set forth below.
The estimated amortization expense for each of the next five years is as follows:
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