Note 8 – Goodwill and Other Intangible Assets

The carrying amount of goodwill was $7.8 million at December 31, 2025 and December 31, 2024. There were no changes in the recorded balance of goodwill during the twelve months ended December 31, 2025.

 

The Company had $2.7 million and $3.8 million of other intangible assets as of December 31, 2025 and December 31, 2024, respectively, which were recognized in connection with the core deposits acquired from the Merger in 2021.

 

The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets:

 

(Dollars in thousands)

December 31, 2025

 

 

December 31, 2024

 

 

Gross Carrying Amount

 

Accumulated Amortization

 

 

Gross Carrying Amount

 

Accumulated Amortization

 

Amortized intangible assets:

 

 

 

 

 

 

 

 

 

    Core deposit intangible

$

9,660

 

$

(6,978

)

 

$

9,660

 

$

(5,868

)

 

 

 

Core

 

 

 

Deposit

 

 

(Dollars in thousands)

Intangible

 

 

2026

$

918

 

 

2027

 

726

 

 

2028

 

535

 

 

2029

 

343

 

 

2030

 

152

 

 

Thereafter

 

8

 

 

Total

$

2,682

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 28, 2025
2023Mar 28, 2024
2022Mar 29, 2023
2021Mar 25, 2022
2020Mar 19, 2021
2019Mar 12, 2020
2018Mar 15, 2019
2017Mar 27, 2018
2016Mar 27, 2017

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.