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Goodwill and Acquired Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Acquired Intangible Assets | Note 6 - Goodwill and Acquired Intangible Assets Goodwill The change in the balance for goodwill was as follows:
(Dollars in thousands) | 2023 |  |  | 2022 |
Balance, beginning of year | $ | 59,946 |  |  | $ | 59,946 |
Goodwill adjustment from merger with Community Shores Bank Corporation |  | - |  |  |  | - |
Balance, end of year | $ | 59,946 |  |  | $ | 59,946 |
The Company acquired Valley Ridge Financial Corp. in 2006, County in 2019, and Community Shores in 2020, which resulted in the recognition of goodwill of $13.7 million, $38.9 million and $7.3 million, respectively. ChoiceOne conducted an annual assessment of goodwill as of June 30, 2023 and no impairment was identified. ChoiceOne used a qualitative assessment to determine goodwill was not impaired. During the prior year, ChoiceOne engaged a third party valuation firm to assist in performing a quantitative analysis of goodwill as of November 30, 2022 ("the valuation date"). In deriving the fair value of the reporting unit (the Bank), the third-party firm assessed general economic conditions and outlook; industry and market considerations and outlook; the impact of recent events to financial performance; the market price of ChoiceOne’s common stock and other relevant events. In addition, the valuation relied on financial projections through 2027 and growth rates prepared by management. Based on the valuation prepared, it was determined that ChoiceOne's estimated fair value of the reporting unit at the valuation date was greater than its book value and impairment of goodwill was not required. Management concurred with the conclusion derived from the quantitative goodwill analysis as of the valuation date and determined that there were no material changes and that no triggering events had occurred that indicated impairment from the valuation date through December 31, 2023, and as a result that it is more likely than not that there was no goodwill impairment as of December 31, 2023. Acquired Intangible Assets Information for acquired intangible assets at December 31 is as follows:
| 2023 |  |  | 2022 |
| Gross |  |  |  |  |  | Gross |  |  |  |
| Carrying |  |  | Accumulated |  |  | Carrying |  |  | Accumulated |
(Dollars in thousands) | Amount |  |  | Amortization |  |  | Amount |  |  | Amortization |
Core deposit intangible | $ | 7,120 |  |  | $ | 5,266 |  |  | $ | 7,120 |  |  | $ | 4,311 |
The core deposit intangible from the County and Community Shores mergers is being amortized on a sum-of-the-years digits basis over ten years and eight years, respectively. Amortization expense was $955,000 in 2023, $1,153,000 in 2022 and $1,307,000 in 2021. The estimated amortization expense for the next five years ending December 31 is as follows (dollars in thousands):
2024 | $ | 757 |
2025 |  | 560 |
2026 |  | 362 |
2027 |  | 164 |
2028 |  | 11 |
Total | $ | 1,854 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
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