Goodwill and Other Intangible Assets

(a) Goodwill

The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in the Washington Banking Merger on May 1, 2014, and the acquisitions of Valley Community Bancshares, Inc. on July 15, 2013, Western Washington Bancorp in 2006 and North Pacific Bank in 1998. The Company’s goodwill is assigned to the Bank and is evaluated for impairment at the Bank level (reporting unit).

The Company recorded additions of goodwill of $89.7 million during the year ended December 31, 2014 as a result of the Washington Banking Merger. The Company recorded additions to goodwill of $16.4 million during the year ended December 31, 2013 as a result of the Valley Acquisition. For additional information on the additions to goodwill, see "Note 2. Business Combinations."

At December 31, 2014, the Company’s step-one analysis concluded that the reporting unit’s fair value was greater than its carrying value and therefore no goodwill impairment charges were required for the year ended December 31, 2014. The Company did not record any goodwill impairment charges for the years ended December 31, 2013 and 2012. Even though there was no goodwill impairment at December 31, 2014, adverse events may impact the recoverability of goodwill and could result in a future impairment charge which could have a material impact on the Company’s operating results.

b) Other Intangible Assets

The other intangible assets represent the core deposit intangible ("CDI") acquired in business combinations. The useful life of the CDI related to the Washington Banking Merger, the acquisitions of Valley, NCB, Pierce, Cowlitz, and Western Washington Bancorp were estimated to be ten, ten, five, four, nine and eight years, respectively.

The following table presents the change in the other intangible assets for the periods indicated:



	Years Ended December 31,
	2014		2013		2012
	(In thousands)
Balance at the beginning of the year	$	1,615	$	1,086	$	1,513
Additions as a result of acquisitions	11,194		1,072		—
Less: amortization expense	1,920		543		427
Balance at the end of the year	$	10,889	$	1,615	$	1,086

The estimated aggregated amortization expense related to these intangible assets for future years is as follows:



	Years Ending December 31,
	(In thousands)
2015	$	2,072
2016	1,443
2017	1,285
2018	1,122
2019	1,043
Thereafter	3,924
	$	10,889