Note 5 – Goodwill and Intangible Assets

The activity in core deposit intangible assets for the years ended December 31, 2025 and ended December 31, 2024 was as follows:

 

 

 

 

 

 

 

December 31, 2025

 

 

December 31, 2024

 

(dollars in thousands)

 

 

 

 

 

 

Net carrying amount at beginning of period

 

$

831

 

 

$

1,012

 

Amortization

 

 

(180

)

 

 

(181

)

Net carrying amount at end of period

 

$

651

 

 

$

831

 

 

 

 

 

 

 

 

 

At December 31, 2025 future estimated annual amortization expense is as follows:

 

Year ending

 

 

 

(in thousands)

 

 

 

2026

 

$

180

 

2027

 

 

180

 

2028

 

 

180

 

2029

 

 

72

 

2030

 

 

30

 

Thereafter

 

 

9

 

Total Estimated Amortization Expense

 

$

651

 

 

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

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

 

Carrying Amount

 

 

Accumulated Amortization

 

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit intangible

 

$

1,868

 

 

$

1,217

 

 

$

651

 

 

$

1,868

 

 

$

1,037

 

 

$

831

 

 

(dollars in thousands)

 

December 31, 2025

 

 

December 31, 2024

 

 

 

 

 

 

 

 

Goodwill

 

$

14,420

 

 

$

14,420

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 27, 2025
2023Mar 22, 2024

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.