NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill were as follows (in thousands):


	Wealth		Capital
	Management		Management		Consolidated
Balance at December 31, 2018	$	15,994	$	8,817	$	24,811
Impairment		—		(1,572)		(1,572)
Reclass of goodwill held for sale		—		(3,553)		(3,553)
Balance at December 31, 2019	$	15,994	$	3,692	$	19,686

Goodwill is tested annually for impairment on October 31 or earlier upon the occurrence of certain events. During the second quarter of 2019, the Company received an unsolicited offer to purchase its Los Angeles-based fixed income team, a portion of the Capital Management segment. This resulted in performing an interim goodwill analysis and we recorded a goodwill impairment loss of $1.6 million during the second quarter of 2019 in the Capital Management segment.

Additionally, goodwill was allocated based on the relative fair value for the portion of the segment held for sale, in the amount of $3.6 million, and was reclassified to assets held for sale at the end of the third quarter 2019. The remaining value of goodwill in the Capital Management segment is $3.7 million.

At October 31, 2019, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value including goodwill. The qualitative assessment indicated that it was more likely than not that the carrying value of the reporting unit exceeded its fair value. Therefore, the Company proceeded to complete the two-step impairment test.

Step 1 of the goodwill impairment analysis includes the determination of the carrying value of the reporting unit, including the existing goodwill, and estimating the fair value of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, we are required to perform the second step to the impairment test.

Our Step 1 goodwill impairment analysis as of October 31, 2019, indicated that the Step 2 analysis was unnecessary.

At December 31, 2019, the Company’s reporting units had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value including goodwill. The qualitative assessment indicated that it was not more likely than not that the carrying value of the reporting unit exceeded its fair value. Therefore, the Company did not complete the two-step impairment test.

The following presents the Company’s intangible assets and related accumulated amortization as of December 31 (in thousands):


	December 31,		December 31,
	2019		2018
Other intangibles	$	4,540	$	9,327
Less accumulated amortization on other intangibles		(4,512)		(8,925)
Other intangible assets, net	$	28	$	402

During the year ended December 31, 2019, the Company retired intangible assets in the amount of $4.8 million that were fully amortized and no longer in service. All intangible assets retired originated in the Capital Management segment.

Amortization expense on definite-lived customer relationship and non-compete intangible assets for the years ended December 31, 2019 and 2018, was $0.4 million and $0.8 million, respectively. The following presents the expected amortization expense on definite-lived intangible assets existing at December 31, 2019 (in thousands):


Year		Expense
2020	$	9
Thereafter		19
Total	$	28