Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Note 7. Goodwill and Other Intangible Assets

As of December 31, 2021 and 2020, goodwill totaled $26.8 million and $19.6 million, respectively.

The following tables present information on amortizable intangible assets included on the consolidated balance sheets as of the dates stated.


	Gross					Net
(Dollars in thousands)	Carrying		Accumulated			Carrying
December 31, 2021	Value		Amortization			Value
Core deposit intangibles	$	9,626	$	(2,908	)	$	6,718
Other amortizable intangibles		2,659		(1,635	)		1,024
Total	$	12,285	$	(4,543	)	$	7,742

	Gross					Net
(Dollars in thousands)	Carrying		Accumulated			Carrying
December 31, 2020	Value		Amortization			Value
Core deposit intangibles	$	2,776	$	(1,366	)	$	1,410
Other amortizable intangibles		2,187		(1,016	)		1,171
Total	$	4,963	$	(2,382	)	$	2,581

As a result of the Bay Banks Merger, a core deposit intangible asset of $6.9 million was recorded as of the acquisition date and is being amortized on an accelerated basis over 10 years using the sum-of-years digits method.

Intangible amortization expense is included in noninterest expense or interest and fees on loans in the consolidated statements of operations depending on the intangible. For the years ended December 31, 2021 and 2020, intangible amortization expense totaled $1.9 million and $825 thousand, respectively.

The following table presents estimated intangible asset amortization expense of the core deposit intangibles and other amortizable intangibles for the next five years and thereafter from the date stated.


(Dollars in thousands)	December 31, 2021
2022	$	1,808
2023		1,455
2024		1,251
2025		1,050
2026		864
Thereafter		1,314
Total	$	7,742

Included in other amortizable intangibles were loan servicing assets of $362 thousand and $209 thousand as of December 31, 2021 and 2020, respectively, related to the sale of the government guaranteed portion of certain loans that the Company continues to service. Loan servicing assets of $266 thousand and $189 thousand were added during the years ended December 31, 2021 and 2020, respectively. The amortization of these intangibles is included in interest and fees on loans in the consolidated statement of operations.

The Company retains MSR assets on mortgages originated and sold to the secondary market. As of December 31, 2021 and 2020, the carrying value of MSR assets included in the consolidate balance sheets were $16.5 million and $7.1 million, respectively.