GOODWILL AND OTHER INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

10. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. There were no changes in the carrying amount of goodwill in 2022 and 2021. The balance in goodwill was $52,505,000 at December 31, 2022 and 2021. The Corporation did not complete any acquisitions in 2022 or 2021.

In testing goodwill for impairment at December 31, 2022, the Corporation by-passed performing a qualitative assessment and performed a quantitative assessment based on comparison of the Corporation’s market capitalization to its stockholders’ equity, resulting in the determination that the fair value of its reporting unit, its community banking operation, exceeded its carrying amount. Accordingly, there was no goodwill impairment at December 31, 2022.

There were no goodwill impairment charges recorded in the years ended December 31, 2022, 2021 and 2020.

Information related to the core deposit intangibles is as follows:

(In Thousands)	December 31,
	2022		2021
Gross amount	$	6,639	$	6,639
Accumulated amortization		(3,762)		(3,323)
Net	$	2,877	$	3,316

Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows:

(In Thousands)	Year Ended December 31,
	2022		2021		2020
Amortization expense	$	439	$	535	$	540

The amount of amortization expense to be recognized in each of the ensuing five years is as follows:

(In Thousands)
2023	$	408
2024		390
2025		424
2026		396
2027		361