Intangible Assets, Goodwill and Title Plant

3 Months Ended

Mar. 31, 2021

Business Combinations, Intangible Assets and Goodwill

Intangible Assets, Goodwill and Title Plants

Intangible Assets

The estimated 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 an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the three-month periods ended March 31, 2021 and 2020 that would indicate the carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired.

Identifiable intangible assets consist of the following:


(in thousands)	As of March 31, 2021		As of December 31, 2020
Referral relationships	$	6,708	$	6,416
Non-compete agreements	1,409		1,406
Tradenames	747		560
Total	8,864		8,382
Accumulated amortization	(3,095)		(2,961)
Identifiable intangible assets, net	$	5,769	$	5,421

The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:


Year Ended (in thousands)
2021	$	409
2022	574
2023	574
2024	522
2025	504
Thereafter	2,999
Total	$	5,582

Goodwill and Title Plants

As of March 31, 2021, the Company recognized $4.4 million in goodwill and $690 thousand in title plants, net of impairments, as the result of title insurance agency acquisitions. The title plants are included with other assets in the unaudited Consolidated Balance Sheets. The fair values of goodwill and the title plants as of the date of acquisition, both Level 3 inputs, were principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the three-month periods ended March 31, 2021 and 2020 that would indicate the carrying amounts may not be recoverable, and therefore determined that there were no goodwill or title plant impairments.