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Note 7 - Intangibles and Acquisition Related Accounting | 3 Months Ended
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Mar. 31, 2020
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 7 – Intangible s and Acquisition Related Accounting The Bancorp established a goodwill balance totaling $11.1 million with the acquisitions of AJSB, First Personal, First Federal, and Liberty Savings. Goodwill of $2.9 million, $5.4 million, $2.0 million, and $804 thousand were established with the acquisition of AJSB, First Personal, First Federal, and Liberty Savings, respectively. Goodwill is tested annually for impairment. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired. The Bancorp’s goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of the Bancorp to provide quality, cost effective banking services in a competitive marketplace. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. There has not been any impairment of goodwill identified or recorded. Goodwill totaled $11.1 million as of March 31, 2020 and December 31, 2019. In addition to goodwill, a core deposit intangible of $93 thousand for the acquisition of First Federal was established and is being amortized over an initial period of 7.9 years on a straight line basis. A core deposit intangible of $471 thousand for the acquisition of Liberty Savings was established and is being amortized over an initial period of 8.2 years on a straight line basis. A core deposit intangible of $3.0 million for the acquisition of First Personal was established and is being amortized over an initial period of 6.4 years on a straight line basis. A core deposit intangible of $2.9 million for the acquisition of AJSB was established and is being amortized over an initial period of 6.5 years on a straight line basis. The table below summarizes the annual amortization:
Amortization recorded for the three months ended March 31, 2020 is as follows: |  |  |  |  |  |  |  |  |
(dollars in thousands) |  | First Federal |  |  | Liberty Savings |  |  | First Personal |  |  | AJSB |  |  | Total |
Current period |  | $ | 3 |  |  | $ | 14 |  |  | $ | 119 |  |  | $ | 112 |  |  | $ | 248 |
Amortization to be recorded in future periods, is as follows: |  |  |  |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  | First Federal |  |  | Liberty Savings |  |  | First Personal |  |  | AJSB |  |  | Total |
Remainder 2020 |  |  | 9 |  |  |  | 44 |  |  |  | 356 |  |  |  | 337 |  |  |  | 746 |
2021 |  |  | 12 |  |  |  | 58 |  |  |  | 475 |  |  |  | 449 |  |  |  | 994 |
2022 |  |  | 1 |  |  |  | 58 |  |  |  | 475 |  |  |  | 449 |  |  |  | 983 |
2023 |  |  | - |  |  |  | 38 |  |  |  | 475 |  |  |  | 449 |  |  |  | 962 |
2024 |  |  | - |  |  |  | - |  |  |  | 470 |  |  |  | 449 |  |  |  | 919 |
2025 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 261 |  |  |  | 261 |
2026 |  |  | - |  |  |  | - |  |  |  | - |  |  |  |  |  |  |  | - |
Total |  | $ | 22 |  |  | $ | 198 |  |  | $ | 2,251 |  |  | $ | 2,394 |  |  | $ | 4,865 |
For the AJSB acquisition, as part of the fair value of certificates of deposit, a fair value premium was established of $174 thousand that is being amortized over 14 months on a straight line basis. Approximately $34 thousand of amortization was taken as income during the three months ended March 31, 2020. The fair market premium on the certificates of deposit has fully amortized as of March 31, 2020.

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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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