Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The following table shows the activity in goodwill and other intangible assets for the years ended December 31, 2021, 2020 and 2019.


(in thousands)	Goodwill		Other Intangible Assets		Total
January 1, 2019	$	112,739	$	6,971	$	119,710
Acquired goodwill and other intangible assets	46,856		8,207		55,063
Amortization	—		2,355		2,355
Trade name intangible impairment	—		1,300		1,300
December 31, 2019	$	159,595	$	11,523	$	171,118
Amortization	—		2,263		2,263
December 31, 2020	$	159,595	$	9,260	$	168,855
Amortization	—		1,798		1,798
December 31, 2021	$	159,595	$	7,462	$	167,057

Goodwill

Goodwill impairment exists when a reporting unit's carrying value exceeds its fair value. Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. At April 1, 2021, the Company's reporting unit, PNB, 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 reporting unit 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. Management continues to monitor economic factors, including economic conditions as a result of the COVID-19 pandemic and responses thereto, to evaluate goodwill impairment.

Acquired Intangible Assets

The following table shows the balance of acquired intangible assets as of December 31, 2021 and 2020.


	2021				2020
(in thousands)	Gross Carrying Amount		Accumulated Amortization/Impairment		Gross Carrying Amount		Accumulated Amortization
Other intangible assets:
Core deposit intangibles	$	14,456	$	6,994	$	14,456	$	5,196
Trade name intangible	1,300		1,300		1,300		1,300
Total	$	15,756	$	8,294	$	15,756	$	6,496

During 2019, Park announced its 2020 rebranding initiative to operate all 12 banking divisions of PNB under one name. The NewDominion trade name intangible was initially recorded assuming an indefinite useful life. Considering Park's rebranding initiative, Park concluded that the trade name intangible represented a definite life asset, and impairment of $1.3 million was recorded during 2019.

Core deposit intangibles are being amortized, on an accelerated basis, over a period of ten years. Amortization expense for the core deposit intangibles was $1.8 million, $2.3 million and $2.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The following is a schedule of estimated amortization expense for each of the next five years:


(in thousands)	Total
2022	$	1,487
2023	1,323
2024	1,215
2025	1,042
2026	887