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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Goodwill and Intangible Assets

In accordance with FASB ASC 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performs its annual goodwill impairment test as of December 31 of each year. For 2021, the results of the qualitative assessment provided no indication of potential impairment.

The Company’s other intangible assets consist of core deposit, customer relationships and tradename. They are initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, the customer relationships are amortized over a weighted average of 10.4 years and the tradename is amortized over five years.

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands):


	September 30,		December 31,
	2022		2021
Goodwill:
Balance, beginning of period	$	91,565	$	74,135
Acquisition of PFG		—		323
Acquisition of Fountain		—		2,400
Acquisition of SCB		—		17,171
Acquisition of Sunbelt		4,580		—
Adjustment, due to sale		—		(2,464)
Balance, end of the period	$	96,145	$	91,565


	Core Deposit		Customer Relationships		Tradename
Amortized other intangible assets:	Intangibles		Intangibles		Intangibles		Total
September 30, 2022:
Beginning balance January 1, 2022, gross	$	17,470	$	3,722	$	63	$	21,255
Acquisition of Sunbelt		-		1,948		-		1,948
Balance, September 30, 2022, other intangible assets, gross		17,470		5,670		63		23,203
Less: accumulated amortization		(7,575)		(1,280)		(33)		(8,888)
Balance, September 30, 2022, other intangible assets, net	$	9,895	$	4,390	$	30	$	14,315

December 31, 2021:
Beginning balance January 1, 2021, gross	$	15,920	$	1,064	$	63	$	17,047
Acquisition of Fountain		-		2,658		-		2,658
Acquisition of SCB		1,550		-		-		1,550
Balance, December 31, 2021, other intangible assets, gross		17,470		3,722		63		21,255
Less: accumulated amortization		(6,212)		(733)		(23)		(6,968)
Balance, December 31, 2021, other intangible assets, net	$	11,258	$	2,989	$	40	$	14,287

The aggregate amortization expense for other intangible assets for the three and nine months ended September 30, 2022, was $650 thousand and $1.9 million, respectively, and for the three and nine months ended September 30, 2021, was $711 thousand and $1.6 million, respectively,

The estimated aggregate amortization expense for future periods for intangibles is as follows (in thousands):


Remainder of 2022	$	688
2023		2,609
2024		2,438
2025		2,258
2026		2,086
Thereafter		4,236
Total	$	14,315