Business Combinations, Intangible Assets, Goodwill and Title Plants

12 Months Ended

Dec. 31, 2022

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. Management determined that no events or changes in circumstances occurred during the periods ended December 31, 2022 and 2021 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)	2022		2021
Referral relationships	$	8,898	$	8,567
Non-complete agreements	3,155		2,938
Tradename	747		747
Total	12,800		12,252
Accumulated amortization	(4,814)		(3,505)
Identifiable intangible assets, net	$	7,986	$	8,747

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


Year Ended (in thousands)
2023	$	1,281
2024	1,162
2025	1,079
2026	1,079
2027	663
Thereafter	2,535
Total	$	7,799

Goodwill and Title Plants

As of December 31, 2022, the Company recognized $9.6 million in goodwill and $1.5 million 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 FASB’s Accounting Standards Codification (“ASC”) 350, management determined that no events or changes in circumstances occurred during the periods ended December 31, 2022 and 2021 that would indicate the carrying amounts may not be recoverable, and therefore, determined that there were no goodwill or title plant impairments.