GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill were as follows as of December 31 (in thousands):

	December 31,		December 31,
	2021		2020
Beginning balance	$	24,191	$	19,686
Acquisition activity		6,397		4,505
Ending balance	$	30,588	$	24,191

During the year ended December 31, 2021, the Company recorded $6.4 million of goodwill as a result of the Teton Acquisition on December 31, 2021.  During the year ended December 31, 2020, the Company recorded $4.5 million of goodwill as a result of the Simmons Branch Acquisition on May 15, 2020. For additional information on goodwill and other intangible related to the Teton and Simmons Branch Acquisitions, see Note 2 – Acquisitions.

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 not required to perform the second step to the impairment test.

As of December 31, 2021, 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 its carrying 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):

	2021		2020
Other intangibles	$	5,857	$	4,593
Less: accumulated amortization on other intangibles		(4,543)		(4,526)
Other intangible assets, net	$	1,314	$	67

Amortization expense on definite-lived customer relationship and non-compete intangible assets was immaterial for the years ended December 31, 2021 and 2020. The following presents the expected amortization expense on definite-lived intangible assets existing as of December 31, 2021 (in thousands):

Year		Expense
2022	$	241
2023		165
2024		145
2025		130
2026		122
Thereafter		511
Total	$	1,314