Goodwill and intangible assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Goodwill and intangible assets:

Goodwill
Balance at December 31, 2019	$	169,051
Addition from acquisition of Farmers National (see Note 2)	6,390
Addition from merger with Franklin (see Note 2)	60,645
Balance at September 30, 2020	$	236,086
Core deposit and other intangibles
Balance at December 31, 2019	$	17,589
Addition of core deposit intangible from acquisition of Farmers National (see Note 2)	2,490
Addition of core deposit intangible from merger with Franklin (see Note 2)	7,670
Less: amortization expense	(3,825)
Balance at September 30, 2020	$	23,924

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 performed a qualitative test of goodwill for impairment as of December 31, 2019 and determined there to be no impairment. Given the significant economic decline during the first nine months of 2020 due to COVID-19 and the resulting 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 September 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. The Company recorded $100 in relief of goodwill during the nine months ended September 30, 2019, related to the sale of the TPO mortgage delivery channel.

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 September 30, 2020 and December 31, 2019 is as follows:

	Core deposit and other intangibles
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
September 30, 2020
Core deposit intangible	$	59,835	$	(37,403)	$	22,432
Customer base trust intangible	1,600		(507)		1,093
Manufactured housing servicing intangible	1,088		(689)		399
Total core deposit and other intangibles	$	62,523	$	(38,599)	$	23,924
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. During the third quarter of 2020, the Company recorded $7,670 of core deposit intangibles resulting from the Franklin merger, 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:

Remainder of 2020	$	1,494
2021	5,477
2022	4,586
2023	3,658
2024	2,946
Thereafter	5,763
	$	23,924