GOODWILL

6 Months Ended

Jun. 30, 2021

Goodwill.

Goodwill

NOTE 4 - GOODWILL

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

	June 30,		December 31,
	2021		2020
Beginning balance	$	24,191	$	19,686
Acquisition activity		—		4,505
Ending balance	$	24,191	$	24,191

During the year ended December 31, 2020, the Company recorded $4.5 million of goodwill as a result of the Branch Acquisition on May 15, 2020.

Goodwill is tested annually for impairment on October 31 or earlier upon the occurrence of certain events.

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.

As of June 30, 2021 and December 31, 2020, 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 fair value of the reporting unit exceeded the carrying value. Therefore, the Company did not complete the two-step impairment test.