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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2016
Goodwill and Other Intangible Assets [Abstract]  
Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

 

The following is a summary of the gross carrying amount and accumulated amortization of amortized intangible assets as of December 31, 2016 and December 31, 2015 and the carrying amount of unamortized intangible assets as of those same dates.

 

   December 31, 2016   December 31, 2015 
($ in thousands)  Gross Carrying
Amount		   Accumulated
Amortization		   Gross Carrying
Amount		   Accumulated
Amortization		 
Amortized intangible assets:                    
   Customer lists  $2,369    746    678    550 
   Core deposit premiums   9,730    8,143    8,560    7,352 
   Other   1,032    224    —    — 
        Total  $13,131    9,113    9,238    7,902 
                     
SBA servicing asset  $415         —      
                     
Unamortized intangible assets:                    
   Goodwill  $75,042         65,835      

 

Activity related to transactions during the year includes the following:

 

(1)In connection with the January 1, 2016 acquisition of Bankingport, Inc., an insurance agency located in Sanford, North Carolina, the Company recorded $1,693,000 in goodwill, $591,000 in a customer list intangible, and $92,000 in other amortizable intangible assets.
(2)In connection with the May 5, 2016 acquisition of SBA Complete, Inc., an SBA loan consulting firm, the Company recorded $5,553,000 in goodwill, $1,100,000 in a customer list intangible, and $940,000 in other amortizable intangible assets.
(3)In connection with the branch exchange transaction with First Community Bank in Bluefield, Virginia, the Company recorded a net increase of $1,961,000 in goodwill and $1,170,000 in core deposit premiums.

 

In addition to the above acquisition related activity, the Company recorded $415,000 in servicing assets associated with the guaranteed portion of SBA loans originated and sold during 2016. Servicing assets are recorded at fair value and amortized as a reduction of service fee income over the expected life of the related loans.

 

Amortization expense totaled $1,211,000, $722,000 and $777,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

 

Goodwill is evaluated for impairment on at least an annual basis – see Note 1(r). For each of the years presented, the Company’s evaluation indicated that there was no goodwill impairment.

 

The following table presents the estimated amortization expense for intangible assets for each of the five calendar years ending December 31, 2021 and the estimated amount amortizable thereafter. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

 

($ in thousands)  Estimated
Amortization Expense		 
2017  $1,240 
2018   874 
2019   665 
2020   439 
2021   315 
Thereafter   485 
         Total  $4,018