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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
92
6.
GOODWILL AND INTANGIBLE ASSETS
Goodwill
The change in goodwill during the year is as follows (dollars in thousands):
2015
2014
2013
Balance at January 1
6,908 $
5,544 $
5,544 $
Acquired goodwill
-
1,364
-
Impairment
-
-
-
Balance at December 31
6,908 $
6,908 $
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, 2015, 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
$
145
$
1,075
$
11
$
Years Ended December 31,
2015
2014
Aggregate amortization expense was $134,000, $11,000, and $0 for 2015, 2014, and 2013.
Estimated amortization expense for each of the next five years and thereafter (dollars in thousands):
2016
134
$
2017
134
$
2018
134
$
2019
134
$
2020
134
$
Thereafter
260
$
930
$