GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2016
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS  
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

 

7.GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

 

A progression of the balance for goodwill follows:

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,  (in thousands)

    

2016

    

2015

 

2014

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

$
10,168

 

$
10,168

 

$
10,168

Acquired goodwill

 

 
6,132

 

 

—

 

 

—

Impairment

 

 

—

 

 

—

 

 

—

End of period

 

$
16,300

 

$
10,168

 

$
10,168

 

 

 

 

 

 

 

 

 

 

 

The goodwill balance relates entirely to the Company’s Traditional Banking operations. The Bank did not record any goodwill associated with its 2012 FDIC-assisted acquisitions.

 

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2016 and 2015, the Company’s Core Banking reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more-likely-than-not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was not more-likely-than-not that the carrying value of the reporting unit exceeded its fair value. Therefore, the Company did not complete the two-step impairment test as of December 31, 2016, 2015 and 2014.

 

The Company recorded a $1 million core deposit intangible (“CDI”) asset in association with its May 17, 2016 Cornerstone acquisition. For the years ending December 31, 2016, 2015 and 2014, aggregate CDI amortization expense follows:

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31, (in thousands)

    

2016

    

2015

    

2014

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit amortization expense

 

$
135

 

$

—

 

$

 —