Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

(8.) GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The carrying amount of goodwill totaled $67.1 million as of both June 30, 2022 and December 31, 2021. The Company performs a goodwill impairment test on an annual basis as of October 1st or more frequently if events and circumstances warrant.


	Banking		All Other (1)		Total
Balance, December 31, 2021	$	48,536	$	18,535	$	67,071
Acquisitions		—		—		—
Balance, June 30, 2022	$	48,536	$	18,535	$	67,071

(1) All Other includes the SDN, Courier Capital and HNP Capital reporting units

Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Based on the decrease in Company stock price in 2022, along with a reduction in the Company's outstanding shares due to share repurchases in 2021 and 2022, a goodwill impairment test was performed in the second quarter of 2022. Based on its qualitative assessment, the Company concluded that it was not more likely than not that goodwill was impaired as of June 30, 2022. Therefore no quantitative assessment was deemed necessary as of June 30, 2022.

Other Intangible Assets

The Company has other intangible assets that are amortized, consisting of core deposit intangibles and other intangibles (primarily related to customer relationships). Gross carrying amount, accumulated amortization and net book value, were as follows (in thousands):


	June 30,			December 31,
	2022			2021
Core deposit intangibles:
Gross carrying amount	$	2,042		$	2,042
Accumulated amortization		(2,042	)		(2,039	)
Net book value	$	—		$	3

Other intangibles:
Gross carrying amount	$	14,545		$	14,545
Accumulated amortization		(7,719	)		(7,219	)
Net book value	$	6,826		$	7,326

Amortization expense for total other intangible assets was $249 thousand and $503 thousand for the three and six months ended June 30, 2022, and $266 thousand and $537 thousand for the three and six months ended June 30, 2021. As of June 30, 2022, the estimated amortization expense of other intangible assets for the remainder of 2022 and each of the next five years is as follows (in thousands):


2022 (remainder of year)	$	482
2023		910
2024		838
2025		766
2026		694
2027		623