Goodwill and Core Deposit Intangible

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Note 9 – Goodwill and Core Deposit Intangible

In accordance with ASC 805, the Company recorded $5.5 million of goodwill along with a core deposit intangible asset of $2.8 million for the Cornerstone Bank acquisition in 2024, and recorded $8.9 million of goodwill along with a core deposit intangible asset of $4.2 million for the five branches acquired in 2019. The Noah Bank acquisition that occurred in 2023 did not generate any goodwill, but the Bank recorded $98 thousand in a core deposit intangible asset. The core deposit intangible assets are being amortized over 10 years, using the sum of the year’s digits. Except as set forth below, GAAP requires that goodwill be tested for impairment annually based on closing date or more frequently if impairment indicators arise. The Company uses May 31

as its annual evaluation date. The reporting unit was determined to be our community banking operations, which is our only operating segment.

ASC Topic

350-20

guidance requires an annual review of the fair value of a Reporting Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a Reporting Unit is less than its carrying amount, including goodwill. A qualitative factor test can be performed to determine whether it is necessary to perform a quantitative goodwill impairment test. If this qualitative test determines it is not more likely than not (less than 50% probability) that the fair value of the Reporting Unit is less than the Carrying Value, then the Company does not have to perform a quantitative test and goodwill can be considered not impaired. After performing the qualitative factor test, the result was the Company determined that a quantitative test would be performed at May 31, 2025, primarily due to the Company’s common

stock trading at 80.0% of book value. This was a possible indication that a goodwill impairment may exist. The result of this quantitative test indicates that fair value is greater than book value and that no Reporting Unit goodwill impairment exists.

The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows:


			Core Deposit
	Goodwill		Intangible
	(In thousands)
Balance at December 31, 2024	$	14,381	$	3,632
Amortization expense		—		(447	)

Balance at June 30, 2025	$	14,381	$	3,185

As of June 30, 2025, the remaining current fiscal year and future fiscal periods amortization for the core deposit intangible is (in thousands):


	Amount
	(In thousands)
2025		400
2026		717
2027		587
2028		457
2029		327
Thereafter		697

Total	$	3,185