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Note 9 - Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
Note
9
.
Goodwill and Other Intangible Assets
 
Goodwill
 
The Company has
one
reporting unit for goodwill impairment testing purposes, Community Banking. Prior to
October 2016,
the Company maintained
two
reporting units, Community Banking and Insurance Services. The Insurance Services reporting unit consisted of the Company’s wholly owned subsidiary Greenpoint, which was sold in
October 2016.
In
October 2018,
the Company sold its remaining insurance agency assets to BI in exchange for an equity interest in BI. In connection with the divestiture, the Company recognized a
one
-time goodwill impairment charge of
$1.49
million. The Company used the fair value of the equity interest in BI as the basis for determining the goodwill impairment. The Company performed its annual assessment of goodwill during the
fourth
quarter of
2018
and concluded that the carrying value of goodwill was
not
impaired.
No
events have occurred after the analysis to indicate potential impairment.
 
The following table presents the changes in goodwill, by reporting unit, during the periods indicated:
 
     
Community Banking
    
Insurance Services
    
Total
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
Balance January 1, 2016
   $
91,455
     $
9,031
     $
100,486
  
Acquisitions and dispositions, net
    
1,290
      
(5,997
 )    
(4,707
 )
Other
(1)
    
3,034
      
(3,034
 )    
-
  
Balance December 31, 2016
   $
95,779
     $
-
     $
95,779
  
                           
Balance January 1, 2017
   $
95,779
      
 
     $
95,779
  
Acquisitions and dispositions, net
    
-
      
 
      
-
  
Balance December 31, 2017
   $
95,779
      
 
     $
95,779
  
                           
Balance January 1, 2018
   $
95,779
      
 
     $
95,779
  
Acquisitions and dispositions, net
    
(1,543
 )    
 
      
(1,543
 )
Impairment charges
    
(1,492
 )    
 
      
(1,492
 )
Balance December 31, 2018
   $
92,744
      
 
     $
92,744
  
                                                                                                    
(
1
) Represents the transfer of goodwill after the sale of Greenpoint to
one
reporting unit
    
 
Other Intangible Assets
 
As of
December 31, 2018,
the remaining lives of core deposit intangibles ranged from
4
years to
7
years with a weighted average remaining life of
5
years. Other identifiable intangibles currently consist primarily of the value assigned to contractual rights arising from FCWM. The following table presents the components of other intangible assets as of the dates indicated:
 
   
December 31,
 
   
2018
    
2017
    
2016
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
Core deposit intangibles
   $
8,184
     $
8,184
     $
11,536
  
Accumulated amortization
    
(3,158
 )    
(2,161
 )    
(4,515
 )
Core deposit intangibles, net
    
5,026
      
6,023
      
7,021
  
Other identifiable intangibles
    
535
      
879
      
3,508
  
Accumulated amortization
    
(535
 )    
(751
 )    
(3,322
 )
Other identifiable intangibles, net
    
-
      
128
      
186
  
Total other intangible assets, net
   $
5,026
     $
6,151
     $
7,207
  
 
Amortization expense for other intangible assets was
$1.04
million in
2018,
$1.06
million in
2017,
and
$1.14
million in
2016.
The following schedule presents the estimated amortization expense for intangible assets, by year, as of
December 31, 2018:
 
(Amounts in thousands)
  
 
 
 
2019
   $
997
  
2020
    
997
  
2021
    
997
  
2022
    
997
  
2023
    
431
  
2024 and thereafter
    
607
  
Total estimated amortization expense
   $
5,026