GOODWILL AND INTANGIBLE ASSETS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | NOTE 9. GOODWILL AND INTANGIBLE ASSETS The Company recorded $11,210,000 of goodwill on the branch purchase from Bank of America and $14,700,000 of goodwill on the Merchants acquisition during 2015. During 2014, the Bank recorded new goodwill totaling $27,437,000 related to the acquisition of Coastal. The Company recorded an additional $656,000 of goodwill during 2015 related to Coastal, for total goodwill recorded of $28,093,000 in the Coastal acquisition. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2015, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. The Company recorded a core deposit intangible asset of $8,636,000 associated with the branch purchase from Bank of America and $3,943,000 associated with the Merchants acquisition during 2015. The Company recorded a core deposit intangible asset of $4,542,000 associated with the acquisition of Coastal during 2014. The amortization period used for core deposit intangibles ranges from three to seven years. Following is a summary of information related to acquired intangible assets:
The aggregate amortization expense for intangible assets was approximately $3,741,000, $2,330,000 and $1,414,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The estimated amortization expense for each of the next five years is as follows (in thousands):
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