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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The Company’s acquisitions are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Both the purchased assets and liabilities assumed are recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities, especially the loan portfolio, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values. At date of acquisition fair values are generally preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding fair values becomes available.
Information on goodwill for the year ended December 31, 2024, 2023 and 2022 is as follows:
Year Ended December 31,
(In thousands)202420232022
Balance, beginning of period$— $1,107 $1,107 
Impairment$— $(1,107)$— 
Balance, end of period$— $— $1,107 
Goodwill is evaluated for impairment annually or whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors, supply costs, unanticipated competitive activities, and acts by governments and courts.
Management estimates the fair value of the reporting unit by considering multiple valuation techniques, which include subjective assumptions about the future cash flows of the Company, assumptions within the capitalization rate, valuation multiples, and market data used. The fair value of each reporting unit is compared to the carrying amount of such reporting unit in order to determine if impairment is indicated.
The Company performed a quantitative assessment as of October 31, 2023, the Company’s annual goodwill impairment measurement date. The analysis determined that the estimated fair value of the reporting unit was less than its carrying value as of October 31, 2023. As a result, the goodwill was considered impaired, and a full impairment charge of $1.1 million was recorded in 2023. Therefore the goodwill balance was zero as of December 31, 2024 and 2023.
The table below provides information regarding the carrying amounts and accumulated amortization of amortized Core deposit intangible assets as of the dates set forth below.
(In thousands)As of December 31,
20242023
Gross carrying amount$748 $748 
Accumulated amortization(386)(339)
Impairment(206)(206)
Net carrying amount$156 $203 
CDI was recorded as part of the Prime Bank business combination in May 2018. The CDI is amortized over a 10-year period using the straight-line method. For the year ended December 31, 2024, 2023 and 2022 the amortization was $47,000, $46,000 and 47,000, respectively. The amortization expense was included in the other operating expenses on the Consolidated Statements of Operations.