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Note 4 - Goodwill
9 Months Ended
Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

4.     GOODWILL


Goodwill is recorded on the acquisition date of each entity, and evaluated annually for possible impairment. Goodwill is required to be tested for impairment on an annual basis or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company’s only reporting unit with assigned goodwill is Metro United.


The Company utilized a third party consultant to perform its annual impairment test as of August 31, 2013 and determined there was no impairment of goodwill as of the test date. The review calculated the fair value of both Metro United and MetroBank on a controlling, marketable basis and reconciled the indicated equity value of the Company based on the concluded valuation of the two reporting units to its market capitalization. Various appraisal methods were considered and based on the specific facts and circumstances, the income approach and the market approach were used to derive the fair value of the reporting units.


Goodwill impairment, if any, is a noncash adjustment to the Company’s financial statements. As goodwill and other intangible assets are not included in the calculation of regulatory capital, the Company’s well capitalized regulatory ratios are not affected. Subsequent reversal of goodwill impairment is prohibited.


Balance as of January 1, 2013

       

Goodwill

    21,827  

Accumulated impairment losses

    7,500  

Net goodwill

  $ 14,327  
         

Impairment losses for the nine months ended September 30, 2013

     
         

Balance as of September 30, 2013

       

Goodwill

    21,827  

Accumulated impairment losses

    7,500  

Net goodwill

  $ 14,327