Goodwill and Core Deposit Intangibles

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

At December 31, 2016, the Company had goodwill of $102 million, of which $51.7 million was related to the SCAF acquisition. The following table presents changes in the carrying value of goodwill for the periods indicated:



	2016		2015
	(dollars in thousands)
Balance, beginning of year	$	50,832	$	22,950
Goodwill acquired during the year	51,658		27,882
Impairment losses	—		—
Balance, end of year	$	102,490	$	50,832
Accumulated impairment losses at end of year	—		—

The Company’s goodwill was evaluated for impairment during the fourth quarter of 2016, with no impairment loss recognition considered necessary.

The Company's change in the gross amount of core deposit intangibles and the related accumulated amortization consisted of the following at December 31:



	2016			2015			2014
	(dollars in thousands)
Gross amount of CDI:
Balance, beginning of year	$	10,782		$	7,876		$	7,876
Additions due to acquisitions	4,320			2,906			—
Balance, end of year	15,102			10,782			7,876
Accumulated amortization
Balance, beginning of year	(3,612		)	(2,262		)	(1,248		)
Amortization	(2,039		)	(1,350		)	(1,014		)
Balance, end of year	(5,651		)	(3,612		)	(2,262		)
Net CDI, end of year	$	9,451		$	7,170		$	5,614

The estimated aggregate amortization expense related to our core deposit intangible assets for each of the next five years is $2.1 million, $2.0 million, $1.7 million, $1.7 million, and $1.4 million. The Company’s core deposit intangibles is evaluated for impairment if events and circumstances indicate possible impairment. Factors that my attribute to impairment include customer attrition and run-off. Management is unaware of any events and/or circumstances that would indicate a possible impairment to the core deposit intangibles.

- 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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