Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

NOTE (6) – Goodwill and Intangible Assets

In connection with the CFBanc Merger (see Note 2 – Business Combination), the Company recognized goodwill of $26.0 million and a core deposit intangible of $3.3 million. An assessment of goodwill impairment was performed as of June 30, 2022, in which no impairment was determined. The following table presents the changes in the carrying amounts of goodwill for the three- and nine-month period ended September 30, 2022:

	Goodwill			Core Deposit Intangible
	(In thousands)
Balance at the beginning of the period	$	25,996		$	2,936
Additions		–			–
Change in deferred tax estimate		(138	)		–
Amortization		–			(326	)
Balance at the end of the period	$	25,858		$	2,610

The carrying amount of the core deposit intangible consisted of the following at September 30, 2022 (in thousands):

Core deposit intangible acquired	$	3,329
Less: accumulated amortization		(719	)
	$	2,610

The following table outlines the estimated amortization expense for the core deposit intangible during the next five fiscal years (in thousands):

2022	$	110
2023		390
2024		336
2025		315
2026		304
Thereafter		1,155
	$	2,610