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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 | Goodwill and Other Intangible Assets (a) Goodwill The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in the following mergers: Premier Commercial Bancorp on July 2, 2018; Puget Sound Bancorp on January 16, 2018; Washington Banking Company on May 1, 2014; Valley Community Bancshares on July 15, 2013; Western Washington Bancorp in 2006 and North Pacific Bank in 1998. The Company’s goodwill is assigned to the Bank and is evaluated for impairment at the Bank level (reporting unit). The following table presents the change in goodwill for the periods indicated:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Balance at the beginning of the period | $ | 240,939 |  |  | $ | 240,939 |  |  | $ | 119,029 |
Additions as a result of acquisitions (1) | — |  |  | — |  |  | 121,910 |
Balance at the end of the period | $ | 240,939 |  |  | $ | 240,939 |  |  | $ | 240,939 |
(1) See Note (2) Business Combinations Due to the deteriorating financial market and economic conditions as a result of the COVID-19 pandemic, the Company determined a triggering event occurred prior to its annual assessment date and consequently engaged an independent third-party valuation specialist to assist management in performing a quantitative assessment of goodwill as of May 31, 2020. Based on the quantitative assessment, management estimated the fair value of the reporting unit by weighting results from the market approach and the income approach. Significant assumptions inherent in the valuation methodologies for goodwill were employed and included, but were not limited to, prospective financial information, growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in our industry. Based on this quantitative test, management determined that the fair value of the reporting unit more likely than not exceeded the carrying value. The Company performed a qualitative assessment during its annual impairment test, and determined that it was more likely than not that the fair value of the reporting unit exceeded the carrying value, such that the Company's goodwill was not considered impaired at December 31, 2020. Similarly, no goodwill impairment charges were required, or recorded, for the years ended December 31, 2019 or 2018. Changes in the economic environment, operations of the reporting unit or other adverse events could result in future impairment charges which could have a material adverse impact on the Company’s operating results. (b) Other Intangible Assets O ther intangible assets represent CDI acquired in business combinations. The useful life of the CDI was estimated to be ten years for the acquisitions of Premier Commercial Bancorp, Puget Sound Bancorp, Washington Banking Company, and Valley Community Bancshares. The following table presents the change in other intangible assets for the periods indicated:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In thousands)
Balance at the beginning of the period | $ | 16,613 |  |  | $ | 20,614 |  |  | $ | 6,088 |
Additions as a result of acquisitions (1) | — |  |  | — |  |  | 18,345 |
Amortization | (3,525) |  |  | (4,001) |  |  | (3,819) |
Balance at the end of the period | $ | 13,088 |  |  | $ | 16,613 |  |  | $ | 20,614 |
(1) See Note (2) Business Combinations The estimated aggregate amortization expense related to these intangible assets for future years is as follows:
| Year Ending December 31,
| (In thousands)
2021 | $ | 3,111 |
2022 | 2,750 |
2023 | 2,435 |
2024 | 1,640 |
2025 | 1,173 |
Thereafter | 1,979 |
Total | $ | 13,088 |

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- Definition The entire disclosure for goodwill. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2144439 + Details
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