XML 28 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
Business Combinations, Intangible Assets and Goodwill Business Combinations, Intangible Assets and Goodwill
 6 Months Ended
Jun. 30, 2017
Business Combinations [Abstract]  
Business Combinations, Intangible Assets and Goodwill
Note 9 – Business Combinations, Intangible Assets and Goodwill

Recent Business Combinations

In October 2016, National Investors Holdings, LLC ("NIH"), a subsidiary of the Company, acquired all of the outstanding shares of a title insurance agency doing business in Texas. NIH paid $10 million plus a $918,000 adjustment for the title insurance agency’s net cash position at closing.

Intangible Assets

The fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from a third party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired at June 30, 2017.

Identifiable intangible assets consist of the following as of June 30, 2017 and December 31, 2016:
 
2017
2016
Referral relationships
$
6,416,215

$
6,416,215

Non-compete agreements
1,405,685

1,405,685

Tradename
560,000

560,000

Total
8,381,900

8,381,900

Accumulated amortization
(942,286
)
(475,110
)
Identifiable intangible assets, net
$
7,439,614

$
7,906,790



The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:
Year Ended:
 
2017
$
432,175

2018
642,253

2019
568,920

2020
568,920

2021
561,587

Thereafter
4,665,759

Total
$
7,439,614



Goodwill and Title Plant

The Company has recognized $4,349,851 in goodwill and $690,000 in a title plant as the result of title insurance agency acquisitions.  The title plant is included with prepaid expenses and other assets in the Consolidated Balance Sheets. The fair values of goodwill and the title plant, both Level 3 inputs, are principally based on values obtained from a third party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred that would indicate the carrying amounts may not be recoverable, and therefore determined that goodwill and the title plant were not impaired at June 30, 2017.