GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

9. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

At December 31, 2021 and 2020, the carrying amount of the Company’s goodwill was $155.8 million and $55.6 million, respectively.

The Company performs its annual goodwill impairment test in the fourth quarter of every year, or more frequently if events or changes in circumstance indicate the asset might be impaired. It was determined during the annual impairment testing that no impairment was needed for the years ended December 31, 2021, 2020 and 2019 as the fair value of the Company’s single reporting unit was determined to exceed the carrying amount of the reporting unit.

The following table presents the change in Goodwill for the years ended December 31, 2021, 2020 and 2019:


	Year Ended December 31,
(In thousands)		2021		2020		2019
Beginning of year	$	55,638	$	55,638	$	55,638
Acquired goodwill¹		100,159		-		-
Impairment		-		-		-
End of year	$	155,797	$	55,638	$	55,638

(1)	See Note 2. Merger for additional information regarding the acquired goodwill

Other Intangible Assets

As a result of the Merger, the Company recorded $10.2 million of core deposit intangible assets and a $780 thousand non-compete agreement intangible asset on the Merger Date.

The following table presents the carrying amount and accumulated amortization of intangible assets that are amortizable and arose from the Merger. There were no intangible assets at December 31, 2020.


	December 31, 2021
		Core Deposit		Non-complete
(In thousands)		Intangibles		Agreement		Total
Gross carrying value	$	10,204	$	780	$	10,984
Accumulated amortization		(1,962)		(660)		(2,622)
Net carrying amount	$	8,242	$	120	$	8,362

Amortization expense recognized on intangible assets was $2.6 million for the year ended December 31, 2021. There was no amortization expense recognized on intangible assets for the years ended December 31, 2020 and 2019.

Estimated amortization expense for 2022 through 2025 and thereafter is as follows:


(In thousands)		Total
2022	$	1,878
2023		1,425
2024		1,163
2025		958
Thereafter		2,938
Total	$	8,362