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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
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)
Net
Intangible
Assets
AdditionsAccumulated
Amortization
Impairment
Net
Intangible
Assets
December 31, 2024:          
Goodwill$104,168 $— $— $(104,168)$— 
Excess servicing (1)
37 — (21)— 16 
Non-compete agreements720 — (720)— — 
Total $104,925 $— $(741)$(104,168)$16 
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, which are included in other assets. The Company has suspended its origination and selling activities in multifamily FHA loans, and therefore, as of December 31, 2024, the Company had no unamortized excess servicing assets for multifamily FHA loans.
The aggregate amortization expense was $741 thousand, $542 thousand and $89 thousand for the years ended December 31, 2024, 2023 and 2022, respectively.
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. 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.