Goodwill and Core Deposit Intangibles

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

At December 31, 2015, the Company had goodwill of $50.8 million, of which $27.9 million was related to the Independence Bank acquisition. The following table presents changes in the carrying value of goodwill for the periods indicated:



	2015		2014
	(in thousands)
Balance, beginning of year	$	22,950	$	17,428
Goodwill acquired during the year	27,882		5,522
Impairment losses	—		—
Balance, end of year	$	50,832	$	22,950
Accumulated impairment losses at end of year	—		—

The Company’s goodwill was evaluated for impairment during the fourth quarter of 2015, with no impairment loss recognition considered necessary.

The estimated aggregate amortization expense related to our core deposit intangible assets for each of the next five years is $1.4 million, $1.4 million, $1.3 million, $1.0 million, and $1.0 million. The Company’s core deposit intangibles were evaluated for impairment during the fourth quarter of 2015, taking into consideration the actual deposit runoff of acquired deposits to the level of deposit runoff expected at the date of merger. Based on the Company’s evaluation, no impairment has taken place on the core deposit intangibles. The following table presents the changes in the gross amounts of core deposit intangibles and the related accumulated amortization for the dates and periods indicated:



	2015			2014			2013
	(in thousands)
Gross amount of CDI:
Balance, beginning of year	$	7,876		$	7,876		$	3,110
Additions due to acquisitions	2,906			—			4,766
Balance, end of year	10,782			7,876			7,876
Accumulated Amortization
Balance, beginning of year	(2,262		)	(1,248		)	(484		)
Amortization	(1,350		)	(1,014		)	(764		)
Balance, end of year	(3,612		)	(2,262		)	(1,248		)
Net CDI, end of year	$	7,170		$	5,614		$	6,628

- 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.

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