ACQUISITIONS

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

ACQUISITION

19. ACQUISITIONS

On May 1, 2015, the Company acquired Wealth Management Consultants. The purchase price included cash, common stock and common stock warrants.

The fair value of the equity included as part of the consideration was determined based on the closing price of the Company’s common shares on the acquisition date and totaled $2.0 million

The acquisition resulted in goodwill and identifiable intangible assets of $2.8 million.

Equity instruments paid as a part of consideration included common stock shares of 47,916 and common stock warrants of 139,860 worth $1.0 million. The per share weighted average fair value of the stock warrants on acquisition date was $7.15. The Company calculated the value using the Black-Scholes Option-Pricing model with the following weighted average assumptions.

Dividend yield	0.93	%
Expected volatility	33.73	%
Expected life	7	Years
Risk-free interest rate	1.84	%

The Company completed two acquisitions during 2017 supporting the Bank’s overall wealth management strategy. The acquisitions were not considered significant to the Company’s financial statements and therefore pro forma financial data and related disclosures are not included.

On August 1, 2017, the Company acquired MCM. The purchase price was comprised of cash and common stock. The excess of the purchase price over the estimated fair value of the identifiable net assets was recorded as goodwill, none of which is tax deductible.

On November 1, 2017, the Company acquired QCM. The purchase price was comprised of cash and common stock. The excess of the purchase price over the estimated fair value of the identifiable net assets was recorded as goodwill and is deductible for tax purposes.

The fair value of the equity included as part of the consideration for both acquisitions was determined based on the closing price of the Company’s common shares on the acquisition date and totaled $5.1 million in the aggregate.

The two acquisitions combined resulted in goodwill of $15.5 million and identifiable intangible assets of $5.5 million. Identifiable intangible assets include tradename, customer relationships and non-compete agreements. No liabilities were assumed at the acquisition date.

Goodwill on the Company’s balance sheet totaled $17.1 million and $1.6 million as of December 31, 2017 and 2016, respectively. Of the $17.1 million of goodwill, $563 thousand relates to the Banking segment and $16.5 million relates to the Wealth Management segment.

During 2017, the Company conducted its annual impairment analysis and concluded that there is no impairment of goodwill.

The table below presents a rollforward of goodwill and intangible assets for the years ended December 31, 2017, 2016, and 2015:

			Identifiable
(In thousands)	Goodwill		Intangible Assets
Balance as of 1/1/15	$	563	$	—
Acquisitions during the period		1,010		1,741
Amortization during the period		—		82
Balance as of 12/31/15	$	1,573	$	1,659
Amortization during the period		—		124
Balance as of 12/31/16	$	1,573	$	1,535
Acquisitions during the period		15,534		5,466
Amortization during the period		—		321
Balance as of 12/31/17	$	17,107	$	6,680

Amortization expense related to identifiable intangible assets was $321 thousand, $124 thousand, and $82 thousand for 2017, 2016, and 2015, respectively.

Estimated amortization expense for each of the next five years is shown in the table below.

(In thousands)
	2018	$	719
	2019		719
	2020		712
	2021		708
	2022		593