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Note 6 - Intangibles and Acquisition Related Accounting | 9 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6 – Intangibles and Acquisition Related Accounting The Bancorp established a goodwill balance totaling $11.5 million with the acquisition of RYFL, and also maintains goodwill balances totaling $11.1 million from prior acquisitions. Goodwill totaled $22.6 million and $11.1 million as of September 30, 2022 and December 31, 2021, respectively. During the quarter ended June 30, 2022, there was remeasurement of goodwill reducing the balance by $158 thousand, see Note 3 – Acquisition Activity for more detail on the remeasurement. 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. In addition to goodwill, a core deposit intangible was established with the acquisition of RYFL and from previous acquisitions. The Bancorp had core deposit intangible balances of $5.2 million and $3.1 million as of September 30, 2022, and December 31, 2021, respectively. The table below summarizes the annual amortization:
The amortization recorded for the nine months ended September 30, is as follows:
(dollars in thousands) |  | Total |
2021 |  | $ | 745 |
2022 |  | $ | 1,157 |
The amortization recorded for the three months ended September 30, is as follows:
(dollars in thousands) |  | Total |
2021 |  | $ | 248 |
2022 |  | $ | 400 |
Amortization to be recorded in future periods, is as follows:
(dollars in thousands) |  | Total |
Current year |  |  | 396 |
2023 |  |  | 1,522 |
2024 |  |  | 1,411 |
2025 |  |  | 688 |
2026 |  |  | 360 |
5 years and thereafter |  |  | 812 |
Total |  | $ | 5,189 |
For the RYFL acquisition, as part of the fair value of certificates of deposit, a fair value premium was established of $1.0 million. Approximately $134 thousand and $438 thousand of amortization was taken as income during the quarter and nine months ended September 30, 2022, respectively. It is estimated amortization to be recorded in future periods is as follows; an additional $103 thousand in 2022, $217 thousand in 2023, $124 thousand in 2024, $72 thousand in 2025, and $55 thousand thereafter.

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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 https://asc.fasb.org/topic&trid=2144416 + Details
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