Note 7 - Core Deposit Intangible & Goodwill

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

7—CORE

DEPOSIT INTANGIBLE & GOODWILL

A summary of core deposit intangible assets is as follows (dollars in thousands):

	Carrying
	Amount
Balance at December 31, 2017	$	3,285
Addition of Core Deposit Intangible from FWVB Merger		9,126
Amortization Expense		(1,477	)
Balance at December 31, 2018		10,934
Amortization Expense		(1,939	)
Balance at December 31, 2019	$	8,995

Core deposit intangible assets related to the FWVB merger totaled

$9.1

million, with an estimated life of approximately

6.5

years, and the FedFirst merger totaled

$5.0

million, with an estimated life of approximately

nine

years. Amortization expense on the core deposit intangible is expected to be approximately

$1.9

million per year and is expected to total approximately

$9.7

million over the next

five

years.

The following table shows a reconciliation of the changes in goodwill (dollars in thousands):

	Carrying
	Amount
Balance at December 31, 2017	$	4,953
Goodwill from the FWVB merger		23,472
Balance at December 31, 2018 and 2019	$	28,425

The total amount of goodwill above has been allocated solely to the Community Banking segment.