Goodwill and Core Deposit Intangible

12 Months Ended

Dec. 31, 2021

Goodwill and Core Deposit Intangible [Abstract]

Goodwill and Core Deposit Intangible

Note 9 – Goodwill and Core Deposit Intangible

In connection with the CFBanc Merger, the Company recognized goodwill of $26.0 million and a core deposit intangible of $3.3 million. The following table presents the changes in the carrying amounts of goodwill and core deposit intangibles for the year ended December 31, 2021:

	Goodwill		Core Deposit Intangible
	(In thousands)
Balance at the beginning of the period	$	-	$	-
Additions		25,996		3,329
Amortization		-		(393	)
Impairment		-		-
Balance at the end of the period	$	25,996	$	2,936

No impairment charges were recorded during 2021 for goodwill impairment. Management’s assessment of goodwill is performed in accordance with ASC 350-20 – Intangibles-Goodwill and Other, which allows the Company to perform a qualitative assessment of goodwill to determine if it is more likely than not the fair value of the Company’s equity is below its carrying value. The Company performed its qualitative assessment as of November 30, 2021. Due to the relatively short amount of time that has passed between the acquisition date, the fact that the combined Company is realizing the intended benefits of the Merger (i.e. lower cost of funds, increased ability to lend, etc.), and the Company’s stock price post-acquisition, no impairment charges were recorded during 2021 for goodwill.

The following table outlines the estimated amortization expense related to the core deposit intangible during the next five fiscal years:

	(In thousands)
2022	$	435
2023		390
2024		336
2025		315
2026		304
Thereafter		1,156
	$	2,936