SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
90
6.
GOODWILL AND INTANGIBLE ASSETS
Goodwill
The change in goodwill during the year is as follows (dollars in thousands):
2014
2013
2012
Balance at January 1
5,544 $
5,544 $
5,544 $
Acquired goodwill
1,364
-
-
Impairment
-
-
-
Balance at December 31
6,908 $
5,544 $
5,544 $
Years Ended December 31,
Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. Bank of the
Sierra (the “Bank”) is the only subsidiary of the Company that meets the materiality criteria necessary to
be deemed an operating segment, and because the Company exists primarily for the purpose of holding the
stock of the Bank we have determined that only one unified operating segment (the consolidated
Company) exists. At December 31, 2014, the Company 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
Company 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.
Acquired Intangible Assets
Acquired intangible assets were as follows at year-end (dollars in thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Core deposit intangibles
1,075
$
11
$
-
$
-
$
Years Ended December 31,
2014
2013
Aggregate amortization expense was $11,000, $0 and $0 for 2014, 2013 and 2012.
Estimated amortization expense for each of the next five years and thereafter (dollars in thousands):
2015
132
$
2016
132
$
2017
132
$
2018
132
$
2019
132
$
Thereafter
404
$
1,064
$
