GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

GOODWILL AND OTHER INTANGIBLE ASSETS

9. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

At December 31, 2022 and 2021, the carrying amount of the Company’s goodwill was $155.8 million.

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, 2022, 2021 and 2020 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, 2022, 2021 and 2020:


	Year Ended December 31,
(In thousands)		2022		2021		2020
Beginning of year	$	155,797	$	55,638	$	55,638
Acquired goodwill¹		-		100,159		-
Impairment		-		-		-
End of year	$	155,797	$	155,797	$	55,638

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

Other Intangible Assets

The following table presents the carrying amount and accumulated amortization of intangible assets that are amortizable.


	December 31, 2022						December 31, 2021
		Core Deposit		Non-compete				Core Deposit		Non-compete
(In thousands)		Intangibles		Agreement		Total		Intangibles		Agreement		Total
Gross carrying value	$	10,204	$	780	$	10,984	$	10,204	$	780	$	10,984
Accumulated amortization		(3,720)		(780)		(4,500)		(1,962)		(660)		(2,622)
Net carrying amount	$	6,484	$	-	$	6,484	$	8,242	$	120	$	8,362

Amortization expense recognized on intangible assets was $1.9 million and $2.6 million for the years ended December 31, 2022 and 2021, respectively.

Estimated amortization expense for 2023 through 2027 and thereafter is as follows:


(In thousands)		Total
2023		1,425
2024		1,163
2025		958
2026		795
2027		664
Thereafter		1,479
Total	$	6,484