Goodwill and intangible assets
Goodwill represents the excess of the cost of a business combination over the fair value of the net assets acquired.
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| Goodwill | | |
| | |
| | |
| Balance at December 31, 2024 | | 242,561 | |
| Addition from merger with Southern States (See Note 2) | | 107,792 | |
| Balance at December 31, 2025 | | $ | 350,353 | |
The Company’s policy is to assess goodwill for impairment at the reporting unit level on an annual basis or more frequently, if an event occurs or circumstances change which indicate that the fair value of a reporting unit is below its carrying amount. Impairment is the condition that exists when the carrying amount of the reporting unit exceeds the fair value of that reporting unit. The Company performed a qualitative assessment as of October 1, 2025 and determined it was more likely than not the fair value of the applicable reporting unit exceeded its carrying value, including goodwill. As such, no impairment of goodwill was recorded. No events of circumstances since the October 1, 2025 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.
Core deposit and other intangibles include core deposit intangibles and a customer base trust intangible. The composition of core deposit and other intangibles, which excludes fully amortized intangibles, as of December 31, 2025 and 2024 is as follows:
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| | | Core deposit and other intangibles | | |
| | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | |
| December 31, 2025 | | | | | | | | |
| Core deposit intangible | | $ | 90,655 | | | $ | (59,625) | | | $ | 31,030 | | | |
| Customer base trust intangible | | 1,600 | | | (1,346) | | | 254 | | | |
| | | | | | | | |
| Total core deposit and other intangibles | | $ | 92,255 | | | $ | (60,971) | | | $ | 31,284 | | | |
| | | | | | | | |
| December 31, 2024 | | | | | | | | |
| Core deposit intangible | | $ | 59,835 | | | $ | (54,486) | | | $ | 5,349 | | | |
| Customer base trust intangible | | 1,600 | | | (1,187) | | | 413 | | | |
| | | | | | | | |
| Total core deposit and other intangibles | | $ | 61,435 | | | $ | (55,673) | | | $ | 5,762 | | | |
Amortization of core deposit and other intangibles totaled $5,298, $2,947, and $3,659 for the years ended December 31, 2025, 2024, and 2023, respectively.
During the year ended December 31, 2025, the Company recorded $30,820 of core deposit intangibles resulting from the Southern States merger. See Note 2, “Mergers and acquisitions” for additional information regarding this transaction.
The estimated aggregate future years amortization expense of core deposit and other intangibles is as follows:
| | | | | | | | | |
| 2026 | | $ | 6,929 | | |
| 2027 | | 6,063 | | |
| 2028 | | 4,971 | | |
| 2029 | | 3,904 | | |
| 2030 | | 3,112 | | |
| Thereafter | | 6,305 | | |
| | | $ | 31,284 | | |