Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

In accordance with FASB ASC 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performs its annual goodwill impairment test as of December 31 of each year. For 2021, the results of the qualitative assessment provided no indication of potential impairment.

The Company’s other intangible assets consist of core deposit, customer relationships and tradename.  They are initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, the customer relationships are amortized over a weighted average of 8.6 years and the tradename is amortized over five years.

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands):

	March 31,		December 31,
	2022		2021
Goodwill:
Balance, beginning of period	$	91,565	$	74,135
Acquisition of PFG		—		323
Acquisition of Fountain		—		2,400
Acquisition of SCB		—		17,171
Adjustment, due to Sale		—		(2,464)
Balance, end of the period	$	91,565	$	91,565

	Core Deposit		Customer Relationships		Tradename
Amortized other intangible assets:	Intangibles		Intangibles		Intangibles		Total
March 31, 2022:
Beginning balance January 1, 2022, gross	$	17,470	$	3,722	$	63	$	21,255
Less: accumulated amortization		(6,671)		(908)		(26)		(7,605)
Balance, March 31, 2022, other intangible assets, net	$	10,799	$	2,814	$	37	$	13,650
December 31, 2021:
Beginning balance January 1, 2021, gross	$	15,920	$	1,064	$	63	$	17,047
Acquisition of Fountain		-		2,658		-		2,658
Acquisition of SCB		1,550		-		-		1,550
Balance, December 31, 2021, other intangible assets, gross		17,470		3,722		63		21,255
Less: accumulated amortization		(6,212)		(733)		(23)		(6,968)
Balance, December 31, 2021, other intangible assets, net	$	11,258	$	2,989	$	40	$	14,287

The aggregate amortization expense for other intangible assets for the three months ended March 31, 2022 and 2021, was $637 thousand and $444 thousand, respectively.

The estimated aggregate amortization expense for future periods for intangibles is as follows (in thousands):

Remainder of 2022	$	1,884
2023		2,356
2024		2,203
2025		2,041
2026		1,888
Thereafter		3,278
Total	$	13,650