GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and other intangible assets are presented in the tables below.

(dollars in thousands)	As of March 31, 2021		As of December 31, 2020
Goodwill	$	10,835	$	10,835

	As of March 31, 2021						As of December 31, 2020
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets		Gross Carrying Amount		Accumulated Amortization		Net Intangible Assets
Core deposit intangible	$	3,590	$	(2,196)	$	1,394	$	3,590	$	(2,063)	$	1,527

The estimated aggregate future amortization expense for intangible assets remaining as of March 31, 2021 is as follows:

(dollars in thousands)
Remainder of 2021	$	362
2022	398
2023	302
2024	205
2025	109
Thereafter	18
	$	1,394

As of March 31, 2021, the Company did not have impairment to goodwill or core deposit intangibles ("CDI"). At March 31, 2021 the Company had goodwill of $10.8 million or 5.40% of equity and CDI of $1.4 million or 0.69% of equity.

In the third quarter of 2020, management determined that the COVID-19 pandemic and its impact on the banking industry, was deemed a triggering event that required an interim impairment test for goodwill. Management engaged an independent consultant to perform a quantitative goodwill and CDI impairment analysis for the Company's single reporting unit, the Bank, as of September 15, 2020 ("the measurement date"). The impairment analysis used both market and income valuation approaches. The market approach analyzed transaction and control premium information for the Company and a selected peer group. The income approach analyzed discounted cash flows. The results of the methods were weighted to determine an overall value. Significant estimates and assumptions included, but were not limited to, projected profitability ratios, discount rates, cash flows projections selection and evaluation and selection of control premiums in appropriate market transactions and selection of peers.

In accordance with the Bank's policy, management performed its annual analyses of goodwill and CDI during the fourth quarter of 2020 and concluded that there was no impairment at December 31, 2020. At March 31, 2021, management's analysis concluded that there were no changes in the Company's financial statements or operations subsequent to the measurement date and the fourth quarter 2020 annual analyses that would indicate that it was more likely than not that goodwill or CDI was impaired.

It is possible that the length and severity of the COVID-19 crisis could cause the Company's goodwill or CDI to become impaired in future periods due to a sustained decline in the Company's stock price or other financial or qualitative measures. In the event that the Company concludes that all or a portion of its goodwill and CDI are impaired, a non-cash charge for the amount of such impairment would be recorded to earnings in that quarter. Such a charge would have no impact on tangible capital or regulatory capital.