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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure
Goodwill and Other Intangible Assets
Goodwill
Goodwill is not amortized, but is subject to impairment tests on 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, 2017 and 2016, the Corporation had goodwill of $10.7 million, which was related to the acquisition of Alterra in 2014.
The Corporation conducted its annual impairment test on July 1, 2017, utilizing a qualitative assessment, and concluded that it was more likely than not that FBB-KC’s estimated fair value exceeded its carrying value. Due to management’s decision to temporarily slow SBA production while investments to enhance the platform were made and the slower than expected ramp up of production during the fourth quarter, management elected to again assess goodwill on November 30, 2017 by comparing the fair value of FBB-KC 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, 2017. Management also assessed external and internal qualitative factors through December 31, 2017 and determined no changes to factors occurred that would negatively impact the goodwill test. 
Other Intangible Assets
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 portions 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 years ended December 31, 2017, 2016 and 2015, loan servicing asset amortization totaled $388,000, $639,000 and $197,000, respectively.
The estimated fair value of the Corporation’s loan servicing asset was $1.8 million and $1.9 million as of December 31, 2017 and 2016, 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. The net book value of the core deposit intangible was $147,000 and $202,000 as of December 31, 2017 and 2016, respectively. For the years ended December 31, 2017, 2016 and 2015, amortization totaled $55,000, $62,000 and $71,000, respectively