XML 30 R14.htm IDEA: XBRL DOCUMENT v3.24.3
Goodwill and Intangibles
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles Goodwill and Intangibles
Intangible assets are included in the Consolidated Balance Sheets as a separate line item, net of accumulated amortization and consist of the following items:
(dollars in thousands)Gross
Intangible
Assets		AdditionsAccumulated
Amortization		ImpairmentNet
Intangible
Assets
September 30, 2024:          
Goodwill$104,168 $— $— $(104,168)$— 
Excess servicing (1)
37 — (16)— 21 
Non-compete agreements720 — (720)— — 
Total $104,925 $— $(736)$(104,168)$21 
December 31, 2023:
Goodwill$104,168 $— $— $— $104,168 
Excess servicing (1)
65 — (28)— 37 
Non-compete agreements— 1,234 (514)— 720 
Total $104,233 $1,234 $(542)$— $104,925 
(1)The Company recognizes a servicing asset for the computed value of servicing fees on the sale of multifamily FHA loans and the sale of the guaranteed portion of SBA loans. Assumptions related to loan terms and amortization are made to arrive at the initial recorded values.
During the second quarter ended June 30, 2024, Management determined that a triggering event had occurred as a result of the share price trading under book value for more than four quarters due to changes in macroeconomic conditions and market volatility in the financial markets and the banking industry due to the impact from rising interest rates which resulted in fluctuations of the Company's stock price with a sustained decrease. As a result of the triggering event, the Company engaged a third-party service provider to assist Management with the determination of the fair value of the Company in the second quarter of 2024. The resulting calculations indicated that the fair value did not exceed the carrying amount of the Company's only reporting unit as of May 31, 2024 which resulted in a determination that goodwill had become fully impaired. The goodwill impairment charge of $104.2 million reduced fully the carrying value of the Company's goodwill as of May 31, 2024. The impaired goodwill is primarily related to the acquisition of the Virginia Heritage Bank in October 2014. The impairment charge did not impact our cash flows, liquidity ratios, core operating performance, or regulatory capital ratios.