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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure | Goodwill and Other Intangible Assets Goodwill is not amortized, but 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 (including goodwill). At December 31, 2016 and 2015, the Corporation had goodwill of $10.7 million, which was entirely related to the acquisition of Alterra in 2014. The Corporation conducted its annual impairment test on July 1, 2016, utilizing a qualitative assessment, and concluded that it was more likely than not that Alterra’s estimated fair value exceeded its carrying value. Due to continued credit deterioration at Alterra and management’s decision to temporarily slow SBA production while investments to enhance the platform are made, management elected to again assess goodwill on November 30, 2016 by comparing the fair value of Alterra to its carrying value. The fair value of the reporting unit was determined based on a weighted average of the income and market approaches. The income approach establishes fair value based on estimated future cash flows of the reporting unit, discounted by an estimated weighted-average cost of capital developed using the capital asset pricing model, which reflects the overall level of inherent risk of the reporting unit. The income approach uses our projections of financial performance for a four-year period and includes assumptions about future revenue growth rates, operating margins and terminal values. The market approach establishes fair value by applying cash flow multiples to the respective reporting unit’s operating performance. The multiples are derived from other publicly traded companies that are similar but not identical from an operational and economic standpoint. Based on this assessment, there was no evidence of goodwill impairment as of November 30, 2016. Management also assessed external and internal qualitative factors through December 31, 2016 and determined no changes to factors occurred that would negatively impact the goodwill test. The Corporation has intangible assets that are amortized consisting of loan servicing rights and core deposit intangibles. Loan servicing rights are recognized upon sale of the guaranteed portion of SBA loans with servicing rights retained. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Loan servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. For the year ended December 31, 2016, 2015 and 2014, loan servicing asset amortization totaled $639,000, $197,000 and $24,000, respectively. The estimated fair value of the Corporation’s loan servicing asset was $1.9 million and $1.6 million as of December 31, 2016 and 2015, respectively. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. The core deposit intangible has a finite life and is amortized by the straight-line method over a period of seven years. Changes in the gross carrying amount, accumulated amortization and net book value of core deposit intangibles were as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (In Thousands)
Gross carrying amount | $ | 347 |  |  | $ | 347 |  |  | $ | 347 |
Less: accumulated amortization | 145 |  |  | 83 |  |  | 12 |
Net book value | $ | 202 |  |  | $ | 264 |  |  | $ | 335 |
Amortization during the period | $ | 62 |  |  | $ | 71 |  |  | $ | 12 |
Estimated amortization expense of core deposit intangibles for fiscal years 2017 through 2021 are as follows:
(In Thousands) |
Estimate for the year ended December 31, |
2017 | $ | 54 |
2018 | 47 |
2019 | 40 |
2020 | 35 |
2021 | 26 |
| $ | 202 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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