The Company has goodwill from business combinations, intangible assets from branch acquisitions, identifiable intangible assets assigned to core deposit relationships and customer lists of First Mid Wealth Management Company and First Mid Insurance. The following table presents gross carrying value and accumulated amortization by major intangible asset class as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025				December 31, 2024
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Goodwill not subject to amortization	$	207,151	$	3,760	$	207,151	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		79,945		51,313		79,945		44,736
Other intangibles		33,657		15,286		30,857		13,180
Total	$	323,768	$	73,374	$	320,968	$	64,691

Core deposit intangibles are being amortized over a period of 10 years and other intangibles, primarily customer lists, are being amortized over periods ranging from 3 to 12 years.

During the quarter ended September 30, 2025, a customer list intangible asset of $2.8 million was recorded for the acquisition of a portion of AAIG’s customer list in connection with its insurance business. First Mid Insurance was assigned all of this intangible asset. The purchase consideration given to AAIG matches the amount of intangible assets recorded.

During the quarter ended September 30, 2024, goodwill of $6.9 million was recorded for the acquisition of the stock of MRIG in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for MRIG and the amount of goodwill recorded (in thousands):


Unallocated purchase price				$	10,059
Less purchase accounting adjustments:
Insurance Company intangible	$	4,305
Other liabilities		(1,176	)
Total purchase accounting adjustments					3,129
Goodwill recorded				$	6,930

The Company has mortgage servicing rights acquired in previous acquisitions. Mortgage servicing rights are accounted for under the amortization method. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of September 30, 2025, September 30, 2024 and December 31, 2024 (in thousands):


	September 30, 2025			September 30, 2024			December 31, 2024
Beginning balance	$	5,629		$	6,859		$	6,859
Adjustment to valuation reserve		1			(77	)		7
Mortgage servicing rights amortized		(797	)		(939	)		(1,226	)
Interest only strip		(10	)		(8	)		(11	)
Ending balance	$	4,823		$	5,835		$	5,629
Fair value of portfolio	$	5,863		$	6,470		$	6,716

Total amortization expense for three and nine months ended September 30, 2025 and 2024 was as follows (in thousands):


	Three months ended				Nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Core deposit intangibles	$	2,128	$	2,416	$	6,577	$	7,445
Other intangibles		744		702		2,106		1,858
Mortgage servicing rights		256		287		797		939
Total	$	3,128	$	3,405	$	9,480	$	10,242

Aggregate amortization expense for the current year and estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):


Aggregate amortization expense:
For period 01/01/25-09/30/25	$	9,480
Estimated amortization expense:
For period 10/01/25-12/31/25		2,956
For year ended 12/31/26		10,849
For year ended 12/31/27		9,584
For year ended 12/31/28		8,371
For year ended 12/31/29		7,019

In accordance with GAAP, the Company performed its annual goodwill impairment test as of September 30, 2025 and determined that, as of that date, goodwill was not impaired. The Company experienced no triggering events during the nine months ended September 30, 2025.

Note 5 -- Goodwill and Intangible Assets