Goodwill and Intangible Assets
The change in goodwill during the years ended December 31, 2025 and 2024 is as follows:
| | | | | | | | | | | | | | |
| | |
| | |
| (in thousands) | | 2025 | | 2024 |
| Balance at beginning of period | | $ | 21,126 | | | $ | — | |
| Acquired goodwill | | — | | | 21,126 | |
| Measurement period adjustment | | 4,843 | | | — | |
| Balance at end of period | | $ | 25,969 | | | $ | 21,126 | |
During the year ended December 31, 2025, the Company revised the estimate of adjusted servicing assets, acquired PCD loans and other liabilities resulting in a $4.8 million increase in goodwill at December 31, 2025, as compared to December 31, 2024. We have completed the purchase price allocation and the goodwill recorded is final.
At December 31, 2025, each of the Company’s segments that were assigned goodwill had positive equity and earnings. The Company has elected to perform a qualitative assessment annually as of October 1 to determine if it is more than likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more than likely than not that the fair value of the reporting unit exceeded the carrying value, resulting in no impairment. The Company reviews its finite-lived intangible assets, including customer list, trade name, and core deposit intangibles, for indicators of impairment, and no indicators were noted during 2025.
Acquired amortizing intangible assets were as follows at December 31:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | | | |
| | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization | | | | | | | | |
| Amortized intangible assets: | | | | | | | | | | | | | | | | |
| Customer list intangible | | $ | 12,200 | | | $ | (879) | | | $ | 12,200 | | | $ | (188) | | | | | | | | | |
| Trade name intangible | | 2,100 | | | (175) | | | 2,100 | | | (40) | | | | | | | | | |
| Core deposits intangible | | 1,779 | | | (254) | | | 1,779 | | | (34) | | | | | | | | | |
| Total amortized intangible assets | | $ | 16,079 | | | $ | (1,308) | | | $ | 16,079 | | | $ | (262) | | | | | | | | | |
Goodwill represents the intangible value of IFH’s business and reputation within the markets it previously served and is not expected to be deductible for income tax purposes. The customer list intangible and trade name intangible will be amortized over its expected useful life of 17 years and 15 years, respectively, using the straight-line method. The core deposit intangible will be amortized over its expected useful life of 10 years using the sum-of-the-years-digits method.
Aggregate amortization expense was $1.0 million and $262 thousand for the years ended December 31, 2025 and 2024, respectively.
Note 8 - Goodwill and Intangible Assets (continued)
At December 31, 2025, scheduled amortization of the intangible assets for each of the next five years is as follows:
| | | | | | | | |
| | |
| (in thousands) | | |
| | |
| 2026 | | $ | 1,043 | |
| 2027 | | 1,038 | |
| 2028 | | 1,033 | |
| 2029 | | 1,026 | |
| 2030 | | 1,019 | |
| Thereafter | | 9,612 | |
| Total | | $ | 14,771 | |