Goodwill is not amortized, but is subject to impairment tests on an annual basis and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount (including goodwill). At December 31, 2024 and 2023, the Corporation had goodwill of $10.7 million, which was related to the acquisition of Alterra Bank in 2014.

The Corporation conducted its annual impairment test on July 1, 2024, utilizing a qualitative assessment, and concluded that it was more likely than not the estimated fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

The Corporation has intangible assets that are amortized consisting of loan servicing rights.

Loan servicing rights are recognized upon sale of the guaranteed portions of SBA loans with servicing rights retained. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Loan servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The amortization of loan servicing rights is included in interest income in the accompanying Consolidated Statement of Income.

Activity in the Corporation's servicing asset and related valuation allowance is as follows:


	For the Year Ended December 31,
	2024			2023			2022
	(In Thousands)
Loan Servicing Rights:
Carrying amount, net, beginning of year	$	1,356		$	1,492		$	1,601
Additions		390			437			525
Amortization		(537	)		(500	)		(634	)
Change in valuation allowance		36			(73	)		—
Carrying amount, net, end of year	$	1,245		$	1,356		$	1,492

Valuation Allowance:
Beginning of year	$	88		$	15		$	15
Change in valuation allowance		(36	)		73			—
End of year	$	52		$	88		$	15

The estimated fair value of the Corporation’s loan servicing asset was $1.2 million and $1.4 million as of December 31, 2024 and 2023, respectively. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. The fair value at December 31, 2024 was established using a discount rate of 13.75% and a constant prepayment rate ("CPR") of 16.05%. The fair value at December 31, 2023 was established using a discount rate of 14.50% and a CPR of 15.50%.