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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2020
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, 2020 and 2019, 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 August 1, 2020, utilizing a qualitative assessment, and concluded that it was more likely than not the estimated fair value of the reporting unit exceeded its carrying value, resulting in no impairment. As part of the Corporation’s qualitative assessment of goodwill impairment, management considered the triggering event of the COVID-19 pandemic and determined that the significant change in the general economic environment and financial markets, including the Corporation’s market capitalization, represents an interim impairment indicator requiring continued evaluation. The Corporation performed Step 1, quantitative goodwill impairment testing, as of August 1, 2020. The initial basis for the valuation was a forecast prepared by management for the years ended 2020 through 2024. The income approach as well as the market approach were utilized by an independent third party to determine the fair value of the Corporation’s goodwill. The fair value of the Corporation’s equity based on the analysis performed was $289.0 million, which exceeded its book value by $89.4 million, or 44.8%, as of August 1, 2020. Based on the analysis performed, management concluded the Corporation’s goodwill is not impaired as of August 1, 2020. The Corporation conducted a subsequent impairment test as of December 31, 2020, utilizing a qualitative assessment, and concluded that it was more likely than not the estimated fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Management determined no changes to factors occurred from the August 1, 2020 through December 31, 2020 that would negatively impact the August 1, 2020 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, 2020 and 2019, loan servicing asset amortization totaled $458,000 and $374,000, respectively. The estimated fair value of the Corporation’s loan servicing asset was $1.3 million and $1.2 million as of December 31, 2020 and 2019, 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. During the years ended December 31, 2020 and 2019, impairment recovery of $16,000 and an expense of $25,000, respectively, was recognized. The core deposit intangible has a finite life and is amortized over a period of seven years. The net book value of the core deposit intangible was $25,000 and $60,000 as of December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, amortization totaled $35,000 and $40,000, respectively.

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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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