Note 8 - Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

(

)

GOODWILL AND OTHER INTANGIBLES

The Company acquired goodwill of

$1.1

million in the acquisition of Peoples in addition to acquiring goodwill of

$5.4

million in the acquisition of Hometown Bancshares, Inc. (“Hometown”) during

2003.

Goodwill is evaluated for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the carrying amount is greater than its fair value.

impairment of goodwill was recognized during

2017,

2016

2015.

The Company acquired a core deposit intangible of

$1.4

million in the acquisition of Peoples. All of the Company’s previously acquired core deposit intangibles had been fully amortized prior to

2015.

Core deposit intangible amortization expense totaled

$147,000,

$147,000

and

$12,000

for

2017,

2016

and

2015,

respectively.

Core deposit intangibles subject to amortization as of

December 31, 2017

and

2016

consisted of the following:

(In thousands)	2017		2016

Core deposit intangible acquired in Peoples acquisition	$	1,418	$	1,418
Less accumulated amortization		306		159

	$	1,112	$	1,259

Estimated amortization expense for the core deposit intangible for each of the ensuing

five

years and in the aggregate is as follows:

Years ending December 31:	(In thousands)

2018	$	147
2019		147
2020		147
2021		147
2022		147
2023 and thereafter		377

Total	$	1,112

- 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 + Details