Note 18 - Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
(18)
Goodwill and Intangible Assets
 
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.
 
Balance, December 31, 2014
  $
28,834
 
Acquisition of Reunion
   
20,639
 
Adjustments to goodwill
   
1,213
 
Balance, December 31, 2015
  $
50,686
 
Adjustments to goodwill
   
85
 
Balance, December 31, 2016
  $
50,771
 
 
 
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.
 
   
December 31, 2016
   
December 31, 2015
 
Gross carrying amount
  $
3,315
     
3,315
 
Less: accumulated amortization
   
(1,283
)    
(527
)
Net carrying amount
  $
2,032
     
2,788
 
 
 
The estimated amortization expense for each of the next
five
years is as follows:
 
 
2017
  $
638
 
2018
   
519
 
2019
   
401
 
2020
   
283
 
2021
   
164
 
Thereafter
   
27
 
Total amortization expense
  $
2,032