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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
(7.) | GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performs its annual impairment test of goodwill as of October 1st of each year. See Note 1 for the Company’s accounting policy for goodwill and other intangible assets. The results of the Company’s 2019 annual impairment test indicated no impairment; consequently, no goodwill impairment charge was recorded in 2019. Based on its qualitative assessment performed during the 2018 annual impairment test, the Company concluded it was more likely than not that the fair value of its SDN reporting unit was less than its carrying value. Accordingly, the Company performed a quantitative assessment review for possible goodwill impairment. Under our quantitative assessment review for goodwill impairment, the fair value of the SDN reporting unit was calculated using income and market-based approaches. Based on this assessment, it was determined that the carrying value of our SDN reporting unit exceeded its fair value. Therefore, the Company recorded a goodwill impairment charge related to the SDN reporting unit of $2.4 million during the quarter ended December 31, 2018. The Company completed an evaluation of the contingent earn out liability related to its 2014 acquisition of SDN during the second quarter of 2017, resulting in a contingent consideration liability adjustment of $1.2 million. Based on this event, a goodwill impairment test was also performed in the second quarter of 2017. Based on its qualitative assessment, the Company concluded it was more likely than not that the fair value of its SDN reporting unit was less than its carrying value. Accordingly, the Company performed a quantitative assessment review for possible goodwill impairment. Under our quantitative assessment review for goodwill impairment, the fair value of the SDN reporting unit was calculated using income and market-based approaches. Based on this assessment, it was determined that the carrying value of our SDN reporting unit exceeded its fair value. Therefore, the Company recorded a goodwill impairment charge related to the SDN reporting unit of $1.6 million during the quarter ended June 30, 2017. The results of the Company’s 2018 annual impairment test indicated no impairment for its Banking segment, its Courier Capital reporting unit or its HNP Capital reporting unit; consequently, no goodwill impairment charge for any of them were recorded in 2018. The results of the Company’s 2017 annual impairment test indicated no impairment for its Banking segment or its Courier Capital reporting unit; consequently, no goodwill impairment charge for either was recorded in 2017. In addition, the Company’s 2017 annual impairment test indicated no additional impairment for the SDN reporting unit. Declines in the market value of the Company’s publicly traded stock price or declines in the Company’s ability to generate future cash flows may increase the potential that goodwill recorded on the Company’s consolidated statement of financial condition be designated as impaired and that the Company may incur a goodwill write-down in the future.
(7.) | GOODWILL AND OTHER INTANGIBLE ASSETS (Continued)
The change in the balance for goodwill during the years ended December 31 was as follows (in thousands):
|  | Banking |  |  | Non-Banking |  |  | Total |
Balance, January 1, 2018 |  | $ | 48,536 |  |  | $ | 17,304 |  |  | $ | 65,840 |
Impairment |  | - |  |  |  | (2,350 | ) |  |  | (2,350 | )
Acquisition |  | - |  |  |  | 2,572 |  |  |  | 2,572 |
Balance, December 31, 2018 |  |  | 48,536 |  |  |  | 17,526 |  |  |  | 66,062 |
Impairment |  | - |  |  |  | - |  |  |  | - |
Acquisition |  | - |  |  |  | - |  |  |  | - |
Balance, December 31, 2019 |  | $ | 48,536 |  |  | $ | 17,526 |  |  | $ | 66,062 |
Other Intangible Assets The Company has other intangible assets that are amortized, consisting of core deposit intangibles and other intangibles (primarily related to customer relationships). Changes in the gross carrying amount, accumulated amortization and net book value for the years ended December 31 were as follows (in thousands):
|  | 2019 |  |  | 2018 |
Core deposit intangibles: |  |  |  |  |  |  |  |
Gross carrying amount |  | $ | 2,042 |  |  | $ | 2,042 |
Accumulated amortization |  |  | (1,944 | ) |  |  | (1,829 | )
Net book value |  | $ | 98 |  |  | $ | 213 |
Other intangibles: |  |  |  |  |  |  |  |
Gross carrying amount |  | $ | 13,883 |  |  | $ | 13,883 |
Accumulated amortization |  |  | (5,120 | ) |  |  | (3,985 | )
Net book value |  | $ | 8,763 |  |  | $ | 9,898 |
Core deposit intangibles and other intangibles amortization expense was $115 thousand and $1.1 million, respectively, for the year ended December 31, 2019. Core deposit intangibles and other intangibles amortization expense was $160 thousand and $1.1 million, respectively, for the year ended December 31, 2018. Core deposit intangibles and other intangibles amortization expense was $205 thousand and $965 thousand, respectively, for the year ended December 31, 2017. Estimated amortization expense of other intangible assets for each of the next five years is as follows (in thousands):
2020 |  | $ | 1,134 |
2021 |  |  | 1,014 |
2022 |  |  | 923 |
2023 |  |  | 852 |
2024 |  |  | 783 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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