Note 6 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 – Goodwill and Other Intangible Assets

A goodwill impairment test is required under ASC 350, Intangibles – Goodwill and Other, and the FASB issued ASU No. 2011-08, “Testing Goodwill for Impairment,” allowing an initial qualitative assessment of goodwill commonly known as step zero impairment testing. In general, the step zero test allows an entity to first assess qualitative factors to determine whether it is more likely than not (i.e., more than 50%) that the fair value of a reporting unit is less than its carrying value. If a step zero impairment test results in the conclusion that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no further testing is required.

Based upon management’s review through December 31, 2022, the Company’s goodwill was not impaired. Management concludes that the ASC 350 goodwill step zero test has been passed, and no further testing is required.

Goodwill

The change in goodwill during the year is as follows:

	2022		2021
	(dollars in thousands)
Balance, January 1	$	208,372	$	208,372
Acquired goodwill		-		-
Impairment		-		-
Balance, December 31	$	208,372	$	208,372

Acquired Intangible Assets

The table below provides information regarding the carrying amounts and accumulated amortization of total amortized intangible assets as of the dates set forth below.

	Gross					Net
	Carrying		Accumulated			Carrying
	Amount		Amortization			Amount
	(dollars in thousands)
Core deposit intangibles
December 31, 2022	$	18,515	$	(11,203	)	$	7,312
Core deposit intangibles
December 31, 2021	$	18,515	$	(9,518	)	$	8,997

Aggregate amortization expense was approximately $1.7 million, $2.0 million and $2.6 million for 2022, 2021 and 2020, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):

2023	$	1,438
2024		1,235
2025		1,116
2026		1,050
2027		989