Goodwill and intangible assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Goodwill and intangible assets:

The following table summarizes changes in goodwill during the six months ended June 30, 2020 and 2019.

	Goodwill
Balance at December 31, 2018	$	137,190
Addition from acquisition of Atlantic Capital branches	31,396
Relief of goodwill due to sale of TPO mortgage delivery channel	(100)
Balance at June 30, 2019	$	168,486
Balance at December 31, 2019	$	169,051
Addition from acquisition of Farmers National (see Note 2)	6,390
Balance at June 30, 2020	$	175,441

Goodwill is tested annually, or more often if circumstances warrant, for impairment. Impairment exists when a reporting unit's carrying value exceeds its fair value. The Company tested goodwill for impairment as of December 31, 2019 and determined there to be no impairment. Given the significant economic decline during the first half of 2020 due to COVID-19 and the negative impact on most businesses, including banking, management determined it would be prudent to evaluate any adverse impact to the Company's recorded goodwill. As of June 30, 2020, the Company performed a qualitative assessment and determined it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. As such, no impairment was indicated.

Core deposit and other intangibles include core deposit intangibles, customer base trust intangible and manufactured housing servicing intangible. The composition of core deposit and other intangibles as of June 30, 2020 and December 31, 2019 are as follows:

	Core deposit and other intangibles
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
June 30, 2020
Core deposit intangible	$	52,165	$	(36,080)	$	16,085
Customer base trust intangible	1,600		(467)		1,133
Manufactured housing servicing intangible	1,088		(635)		453
Total core deposit and other intangibles	$	54,853	$	(37,182)	$	17,671
December 31, 2019
Core deposit intangible	$	49,675	$	(33,861)	$	15,814
Customer base trust intangible	1,600		(387)		1,213
Manufactured housing servicing intangible	1,088		(526)		562
Total core deposit and other intangibles	$	52,363	$	(34,774)	$	17,589

During the first quarter of 2020, the Company recorded $2,490 of core deposit intangibles resulting from the Farmers National acquisition, which is being amortized over a weighted average life of approximately 4 years.

The estimated aggregate future amortization expense of core deposit and other intangibles is as follows:

2020	$	2,287
2021	4,089
2022	3,350
2023	2,574
2024	2,015
Thereafter	3,356
	$	17,671