Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 8 – Goodwill and Other Intangible Assets

The carrying amount of goodwill was $7.8 million and $8.1 million at December 31, 2022 and December 31, 2021, respectively. The following table presents the changes in goodwill during the twelve months ended December 31, 2022. There were no changes in the recorded balance of goodwill during the twelve months ended December 31, 2021:

(Dollars in thousands)	Sturman Wealth Advisors			Fauquier		Total
Balance as of January 1, 2022	$	372		$	7,768	$	8,140
Sale of Sturman Wealth Advisors		(372	)		-		(372	)
Balance at December 31, 2022	$	-		$	7,768	$	7,768

The Company had $6.6 million and $8.5 million of other intangible assets as of December 31, 2022 and December 31, 2021, respectively. Other intangible assets were recognized in connection with (i) the book of business, including interest in the client relationships of an officer, acquired by VNB Wealth in 2016, referred to as Sturman Wealth Advisors, and (ii) the core deposits acquired from Fauquier in 2021. Refer to Note 21 - Sale of Sturman Wealth Advisors for more information regarding the sale of such segment and the elimination of goodwill and other intangible assets related to such business during December 2022.

The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets:

(Dollars in thousands)	December 31, 2022					December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Core deposit intangible	$	9,660	$	(3,074	)	$	9,660	$	(1,389	)
Customer relationships intangible		-		-			773		(499	)
Total	$	9,660	$	(3,074	)	$	10,433	$	(1,888	)

The Company recognized $1.7 million and $1.5 million during the years ending December 31, 2022 and 2021, respectively, in amortization expense from these identified intangible assets with a finite life. Estimated future amortization expense by year as of December 31, 2022 is as follows:

	Core
	Deposit
(Dollars in thousands)	Intangible
2023		1,493
2024		1,301
2025		1,110
2026		918
2027		726
Thereafter		1,038
Total	$	6,586