Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is tested for impairment annually, or more often if circumstances warrant. If, as a result of impairment testing, it is determined that the fair value of goodwill is lower than its carrying amount, goodwill must be written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. Goodwill totaled $7.4 million as of both December 31, 2024 and 2023. Goodwill impairment was neither indicated nor recorded during the years ended December 31, 2024 and 2023.

Core deposit premiums are amortized over a seven-year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value. No write-downs of core deposit premiums were recorded by the Company during the years ended December 31, 2024 and 2023.

The Company’s goodwill and other intangible assets (carrying basis and accumulated amortization) as of December 31, 2024 and 2023 were as follows:


	December 31, 2024			December 31, 2023
	(Dollars in Thousands)			(Dollars in Thousands)
Goodwill	$	7,435		$	7,435
Core deposit intangible assets:
Gross carrying amount		2,048			2,048
Accumulated amortization		(1,999	)		(1,877	)
Core deposit intangible, net		49			171
Total	$	7,484		$	7,606

The Company’s estimated remaining amortization expense on intangible assets as of December 31, 2024 was as follows:


	Amortization Expense
	(Dollars in Thousands)
2025	$	49
Total	$	49

The net carrying amount of the Company’s core deposit assets is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use and eventual disposition. That assessment is based on the carrying amount of the intangible assets subject to amortization at the date on which it is tested for recoverability. Intangible assets subject to amortization are tested by the Company for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.