Business Combinations, Intangible Assets, Goodwill and Title Plants

12 Months Ended

Dec. 31, 2021

Intangible Assets

The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred during the periods ended December 31, 2021 and 2020 that would indicate the carrying amounts may not be recoverable, and therefore, determined that no identifiable intangible assets were impaired.

Identifiable intangible assets consist of the following as of December 31:


Year Ended (in thousands)	2021		2020
Referral relationships	$	8,567	$	6,416
Non-complete agreements	2,938		1,406
Tradename	747		560
Total	12,252		8,382
Accumulated amortization	(3,505)		(2,961)
Identifiable intangible assets, net	$	8,747	$	5,421

The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:


Year Ended (in thousands)
2022	$	1,282
2023	1,290
2024	1,107
2025	1,024
2026	1,024
Thereafter	2,833
Total	$	8,560

Goodwill and Title Plants

As of December 31, 2021, the Company recognized $7.2 million in goodwill and $857 thousand in title plants, net of impairments, as the result of title insurance agency acquisitions. The title plants are included with other assets in the Consolidated Balance Sheets. The fair values of goodwill and the title plants as of the date of acquisition, both Level 3 inputs, were principally based on values obtained from an independent third-party valuation service. In accordance with ASC 350, management determined that no events or changes in circumstances occurred during the periods ended December 31, 2021 and 2020 that would indicate the carrying amounts may not be recoverable, and therefore, determined that there were no goodwill or title plant impairments.