GOODWILL AND INTANGIBLE ASSETS
Goodwill— The beginning and ending balance of goodwill was $31,498 during the periods ended December 31, 2025 and December 31, 2024. There were no changes to goodwill during either period. Intangible assets--Intangible assets consist of core deposit intangibles arising from various bank acquisitions. A summary of intangible assets and related amortization for the periods shown below follows:
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| | Year ended | | Year Ended |
| | December 31, 2025 | | December 31, 2024 |
| Gross carrying amount | | $ | 12,180 | | | $ | 12,180 | |
| Accumulated amortization | | (11,785) | | | (11,201) | |
| Net book value | | $ | 395 | | | $ | 979 | |
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| Amortization during the period | | $ | 584 | | | $ | 715 | |
At December 31, 2025, the estimated future aggregate amortization expense for the intangible assets are as follows:
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| | Intangible Assets |
| 2026 | | $ | 395 | |
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| Total | | $ | 395 | |
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.