Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 7. Goodwill and Intangible Assets

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.  Considering the recent economic conditions resulting from the COVID-19 pandemic, the Company performed a Step 1 goodwill impairment test (which compares the fair value of a reporting unit with its carrying amount, including goodwill) at September 30, 2020, and December 31, 2020, the results indicated that there was no impairment. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes.

The Company’s other intangible assets consist of core deposit intangibles, insurance agency customer relationships and insurance agency 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 insurance agency customer relationships are amortized over ten years and the insurance agency 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):

	December 31,		December 31,
	2020		2019
Goodwill:
Balance, beginning of period	$	65,614	$	66,087
Adjustment to values initially recorded for Acquisition of Foothills Bancorp, Inc.		—		(473)
Acquisition of PFG		8,521		—
Balance, end of the period	$	74,135	$	65,614

	Core Deposit		Insurance Agency		Insurance Agency
Amortized other intangible assets:	Intangibles		Customer Relationships		Tradename		Total
Beginning balance January 1, 2020	$	14,550	$	-	$	-	$	14,550
Acquisition of PFG		1,370		1,064		63		2,497
Balance, December 31, 2020, other intangible assets, gross		15,920		1,064		63		17,047
Less: accumulated amortization		(4,540)		(161)		(10)		(4,711)
Balance, December 31, 2020, other intangible assets, net		11,380		903		53		12,336
Beginning balance January 1, 2019	$	14,550	$	-	$	-	$	14,550
Less: accumulated amortization		(2,971)		-		-		(2,971)
Balance, December 31, 2019, other intangible assets, net		11,579		-		-		11,579

The aggregate amortization expense for other intangibles assets for the years ended December 31, 2020 and 2019, was $1.7 million and $1.4 million, respectively.

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

2021	$	1,760
2022		1,697
2023		1,636
2024		1,588
2025		1,531
Thereafter		4,124
Total	$	12,336