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Note 8 - Goodwill and Other Intangible Assets, Net
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
8.
GOODWILL AND OTHER
INTANGIBLE ASSETS
, NET
 
Information related to the core deposit intangibles are as follows:
 
(In Thousands)
  
 
 
 
  
 
 
 
   
March 31,
    
December 31,
  
   
2020
    
2019
  
Gross amount
   $
3,495
     $
3,495
  
Accumulated amortization
    
(2,310
 )    
(2,248
 )
Net
   $
1,185
     $
1,247
  
 
Amortization expense was
$62,000
in the
first
quarter
2020
and
$2,000
in the
first
quarter
2019.
 
Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. At
March 31, 2020
and
December 31, 2019,
the carrying value of goodwill is
$28,388,000
.
 
Goodwill is tested at least annually at
December 31
for impairment, or more often if events or circumstances indicate there
may
be impairment. In the
first
quarter
2020,
the coronavirus (COVID-
19
) pandemic that has impacted the U.S. and most of the world has led to government-imposed emergency restrictions that have substantially limited the operation of non-essential businesses and the activities of individuals. These restrictions have resulted in significant adverse effects on macroeconomic conditions, and stock market valuations have decreased significantly for most companies, including banks. The ultimate effect of COVID-
19
on the local or broader economy is
not
known nor is the ultimate length of the restrictions described and any accompanying effects. In light of the adverse circumstances resulting from COVID-
19,
management determined it necessary to evaluate goodwill for impairment at
March 31, 2020.
 
The average closing price (trading price) of the Corporation’s common stock was
$19.96
per share for the month of
March 2020,
down from
$25.90
in
February 2020
and
$27.37
in
January 2020.
The average closing price for the last
10
trading days of the
first
quarter
2020
(
March 18
through
March 31, 2020)
was
$18.87
per share. In comparison, the book value per share of the Corporation’s common stock at
March 31, 2020
was
$18.22
per share. In testing goodwill for impairment as of
March 31, 2020,
the Corporation by-passed performing a qualitative assessment and performed a quantitative assessment based on comparison of the Corporation’s market capitalization to its stockholders’ equity, resulting in the determination that the fair value of its reporting unit, its community banking operation, exceeded its carrying value. Accordingly, there was
no
goodwill impairment at
March 31, 2020.