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Note 7 - Intangible Assets

12 Months Ended

Dec. 31, 2015

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

Note 7 – Intangible Assets

Intangible assets are included in the Consolidated Balance Sheets as a separate line item, net of accumulated amortization and consist of the following items:

		Gross												Net
		Intangible				Additions/				Accumulated				Intangible
(dollars in thousands)		Assets				(Adjustments)				Amortization				Assets

December 31, 2015
Goodwill (1)		$	104,425			$	(257	)		$	-			$	104,168
Core deposit (2)			7,070				-				(3,084	)			3,986
Excess servicing (3)			282				379				(274	)			387
		$	111,777			$	122			$	(3,358	)		$	108,541

December 31, 2014
Goodwill (1)		$	2,163			$	102,262			$	-			$	104,425
Core deposit (2)			2,520				4,550				(1,869	)			5,201
Excess servicing (3)			865				330				(913	)			282
		$	5,548			$	107,142			$	(2,782	)		$	109,908

The aggregate amortization expense was $1.5 million, $743 thousand, and $614 thousand for the years ended December 31, 2015, 2014 and 2013, respectively.

(1)

The Company recorded an initial amount of unidentified intangible (goodwill) incident to the acquisition of Fidelity of approximately $360 thousand. Based on allowable adjustments through August 31, 2009, the unidentified intangible (goodwill) amounted to approximately $2.2 million. The Company recorded an initial amount of unidentified intangible (goodwill) incident to the acquisition of Virginia Heritage of approximately $102.3 million. Based on allowable adjustments through October 31, 2015, the unidentified intangible (goodwill) was reduced by $257 thousand.

(2)

In connection with the Fidelity and Virginia Heritage acquisitions, the Company made an allocation of the purchase price of $2.3 million and $4.6 million, respectively, to the core deposit intangibles. These allocations were based on independent evaluations, and are included in intangible assets, net of the Consolidated Balances Sheets. The amount of the core deposit intangible relating to the Fidelity acquisition at December 31, 2015 was $502 thousand, which is being amortized over its remaining economic life through 2018 as a component of other noninterest expense. The amount of the core deposit intangible relating to the Virginia Heritage acquisition at December 31, 2015 was $3.5 million, which is being amortized over its remaining economic life through 2020 as a component of other noninterest expense.

(3)

The Company recognizes a servicing asset for the computed value of servicing fees on the sale of the guaranteed portion of SBA loans, which is in excess of a normal servicing fee. Assumptions related to the loan term and amortization period are made to arrive at the initial recorded value.

The future estimated annual amortization expense is presented below:

Years Ending December 31:
(dollars in thousands)

2016		$	1,207
2017			1,064
2018			957
2019			715
2020			43
Thereafter			-
Total		$	3,986