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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 7 – Goodwill and Other Intangible Assets A goodwill impairment test is required under ASC 350, Intangibles – Goodwill and Other, and the FASB issued ASU No. 2011-08, “Testing Goodwill for Impairment,” allowing an initial qualitative assessment of goodwill commonly known as step zero impairment testing. In general, the step zero test allows an entity to first assess qualitative factors to determine whether it is more likely than not (i.e., more than 50%) that the fair value of a reporting unit is less than its carrying value. If a step zero impairment test results in the conclusion that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no further testing is required. In accordance with ASC 350, the Company performs goodwill impairment test at least annually, or more frequently if triggering event occurs. In the second quarter of 2020, the impact of COVID-19, prompted the Company to quantitively evaluate goodwill for impairment. The Company engaged an independent third-party to evaluate the fair value of the Company compared to its carrying value. To estimate the fair value of the Company, the third-party relied on a weighted discounted cash flow method, guideline public company method, and transaction method. The results concluded that the fair value of the Company exceeded its current carrying value and goodwill impairment did not exist as of June 30, 2020. Based upon management’s review through December 31, 2020, the Company’s goodwill was not impaired. Management concludes that the ASC 350 goodwill step zero test has been passed, and no further testing is required. Goodwill The change in goodwill during the year is as follows:
|  | 2020 |  |  | 2019 |
|  | (dollars in thousands) |
Balance, January 1 |  | $ | 162,574 |  |  | $ | 145,909 |
Acquired goodwill |  |  | 45,798 |  |  |  | 16,665 |
Impairment |  |  | - |  |  |  | - |
Balance, December 31 |  | $ | 208,372 |  |  | $ | 162,574 |
- 85 - Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 7 – Goodwill and Other Intangible Assets – (continued) Acquired Intangible Assets The table below provides information regarding the carrying amounts and accumulated amortization of total amortized intangible assets as of the dates set forth below.
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
|  | (dollars in thousands) |
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Core deposit intangibles |  | $ | 18,515 |  |  | $ | (7,538) |  |  | $ | 10,977 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |
Core deposit intangibles |  | $ | 10,439 |  |  | $ | (4,979) |  |  | $ | 5,460 |
Aggregate amortization expense was approximately $2.6 million, $1.4 million and $0.6 million for 2020, 2019 and 2018, respectively. Estimated amortization expense for each of the next five years (dollars in thousands):
2021 |  | $ | 1,981 |
2022 |  |  | 1,485 |
2023 |  |  | 1,438 |
2024 |  |  | 1,235 |
2025 |  |  | 1,116 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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