GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents changes in goodwill for the years ended December 31, 2020 and 2019.


	2020		2019
Balance, beginning of year	$	19,925	$	12,592
Acquired goodwill	—		7,029
Adjustments to acquired goodwill (1)	(1,201)		304

Balance, end of year	$	18,724	$	19,925

(1) The Company finalized its purchase accounting adjustments associated with Hamilton as of May 1, 2020.

Goodwill is not amortized but is reviewed for potential impairment on at least an annual basis, with testing between annual tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit.

The Company typically completes its annual goodwill impairment assessment as of November 30. Due to the severe economic impact of COVID-19 and a resulting sustained decline in the Company's market value below book value, management performed a quantitative Step 1 impairment analysis of its goodwill to determine whether the Company's goodwill was impaired as of August 31, 2020. This analysis, which was performed in accordance with ASU 2017-04, Intangibles-Goodwill and Other, considered several factors, such as future cash flow projections and estimated market acquisition premiums in its analysis. In performing the analysis, management made several assumptions with respect to future operating performance, economic and market conditions and various others, many of which require significant judgment. The analysis performed and the related assumptions reflect the best currently available estimates and judgements regarding future performance of the Company. It was concluded that no impairment existed at August 31, 2020 as the calculated fair value of the reporting unit exceeded its book value. No changes occurred that would impact the results of that analysis through December 31, 2020.

The following tables present changes in and components of other intangible assets for the years ended December 31, 2020 and 2019.


	2020		2019
Balance, beginning of year	$	7,180	$	3,910
Acquired CDI	—		4,550

Non-compete agreement	—		290
Amortization expense	(1,569)		(1,570)
Impairment	(153)		—
Balance, end of year	$	5,458	$	7,180


	2020				2019
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Core deposit intangibles	$	8,390	$	2,935	$	8,390	$	1,493
Other client relationship intangibles	25		22		524		338
Non-compete agreement	—		—		290		193
Total	$	8,415	$	2,957	$	9,204	$	2,024

During the year ended December 31, 2020, other client relationship intangibles with a gross carrying amount of $149 thousand were fully amortized and there was a further reduction of the gross carrying amount of $350 thousand due to the dissolution of Wheatland which resulted in an impairment charge of $153 thousand.

The following table presents future estimated aggregate amortization expense at December 31, 2020.


2021	$	1,275
2022	1,105
2023	935
2024	766
2025	596
Thereafter	781
	$	5,458

The Company incurred amortization expense of $1.6 million, $1.6 million and $286 thousand, respectively, in the years ending December 31, 2020, 2019 and 2018.