Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangibles

v3.20.2
Goodwill and Intangibles
9 Months Ended
Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles

NOTE 7. GOODWILL AND INTANGIBLES

Goodwill and other intangible assets are presented in the table below. As of September 30, 2020, we evaluated recent events to determine if a triggering event had occurred.  Management determined that the economic disruption and uncertainty surrounding the COVID-19 pandemic does constitute a triggering event and a Step 1 Goodwill analysis was deemed necessary.  The Step 1 analysis performed included utilizing the discounted cash flow and market approaches and based on our evaluation, we concluded that our goodwill was not more than likely impaired as of that date.

 

 

 

Nine Months

Ended September 30,

2020

 

 

Year Ended

December 31,

2019

 

 

 

(Dollars in thousands)

 

Beginning goodwill

 

$

68,503

 

 

$

18,253

 

Arising from business combination

 

 

11,456

 

 

 

50,250

 

Measurement Period Adjustments

 

 

(2,278

)

 

 

 

Ending goodwill

 

$

77,681

 

 

$

68,503

 

 

 

 

 

 

 

 

 

 

Core deposit intangible

 

 

19,712

 

 

 

19,712

 

Arising from business combination

 

 

10

 

 

 

 

Less: Accumulated amortization

 

 

(11,024

)

 

 

(8,240

)

Core deposit intangible, net

 

$

8,698

 

 

$

11,472

 

 

Amortization expense for core deposit intangibles for the three months ended September 30, 2020 and 2019 totaled $919 thousand and $1.0 million, respectively. Amortization expense for core deposit intangibles for the nine months ended September 30, 2020 and 2019 totaled $2.8 million and $2.6 million, respectively.

The estimated amount of amortization expense for core deposit intangibles to be recognized over the next five fiscal years is as follows:

 

Type of intangibles

 

Remainder of 2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

 

(Dollars in thousands)

 

Core deposit intangible

 

$

879

 

 

$

3,028

 

 

$

2,212

 

 

$

1,499

 

 

$

744

 

 

$

200