Note 13 – Goodwill and Core Deposit Intangible

Goodwill and core deposit intangibles result from the Company’s prior acquisitions. The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:

 

 

Goodwill

 

 

Core Deposit
Intangible

 

 

(In thousands)

 

Balance at January 1, 2025

 

$

14,381

 

 

$

3,632

 

Amortization expense

 

 

 

 

 

(856

)

Balance at December 31, 2025

 

$

14,381

 

 

$

2,776

 

 

 

 

 

 

 

 

 

Goodwill

 

 

Core Deposit
Intangible

 

 

(In thousands)

 

Balance at January 1, 2024

 

$

8,853

 

 

$

1,422

 

Acquisition of Cornerstone Bank

 

 

5,528

 

 

 

2,812

 

Amortization expense

 

 

 

 

 

(602

)

Balance at December 31, 2024

 

$

14,381

 

 

$

3,632

 

 

The core deposit intangible assets are being amortized over 10 years, using the sum of the year’s digits. As of December 31, 2025, the future fiscal periods amortization for the core deposit intangible is as follows:

 

 

Amount

 

 

(In thousands)

 

2026

 

 

717

 

2027

 

 

587

 

2028

 

 

457

 

2029

 

 

320

 

2030

 

 

245

 

Thereafter

 

 

450

 

Total

 

$

2,776

 

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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 14, 2025
2023Mar 25, 2024
2022Mar 24, 2023

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.