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GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]  
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

3. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS

Changes in the carrying amount of the Company’s goodwill and core deposit intangibles were as follows:

 

 

 

 

 

 

 

Core Deposit

 

 

 

Goodwill

 

 

Intangibles

 

 

 

(Dollars in thousands)

 

Balance as of December 31, 2017

 

$

39,389

 

 

$

3,274

 

Acquisition of Post Oak Bancshares, Inc.

 

 

183,736

 

 

 

25,128

 

Amortization

 

 

 

 

 

(1,815

)

Balance as of December 31, 2018

 

 

223,125

 

 

 

26,587

 

Acquisition of LoweryBank branch

 

 

578

 

 

 

 

Measurement period adjustment

 

 

(61

)

 

 

 

Amortization

 

 

 

 

 

(4,711

)

Balance as of December 31, 2019

 

 

223,642

 

 

 

21,876

 

Amortization

 

 

 

 

 

(3,922

)

Balance as of December 31, 2020

 

$

223,642

 

 

$

17,954

 

 

Goodwill is recorded on the acquisition date of an entity. During the measurement period, the Company may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date.  

 

The Company performs its annual evaluation of goodwill impairment of Allegiance Bancshares, Inc., the sole reporting unit, on October 1 each year and on an interim basis if events or changes in circumstances between annual tests suggest additional testing may be warranted to determine if goodwill might be impaired. The Company has one reporting unit. Due to the effects that the COVID-19 pandemic continued to have on the economy and the movement of the Company’s stock price, the Company performed its annual quantitative goodwill impairment analysis as of September 30, 2020 and determined that goodwill was not impaired. If adverse economic conditions or declines in the Company’s stock price are sustained, further quantitative and qualitative analysis could result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. However, such a charge would not have an impact on the Company’s liquidity, operations or regulatory capital. No triggering event occurred during the fourth quarter of 2020 that required an updated goodwill impairment analysis at December 31, 2020.

The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2020 is as follows (dollars in thousands):

 

2021

 

$

3,296

 

2022

 

 

3,003

 

2023

 

 

2,323

 

2024

 

 

2,188

 

2025

 

 

2,061

 

Thereafter

 

 

5,083

 

Total

 

$

17,954