Goodwill and Core Deposit Intangible

12 Months Ended

Dec. 31, 2023

Goodwill and Core Deposit Intangible [Abstract]

Goodwill and Core Deposit Intangible

Note 7 – Goodwill and Core Deposit Intangible

The Company recognized goodwill of $25.9 million and a core deposit intangible of $2.1 million. The following table presents the changes in the carrying amounts of goodwill and core deposit intangibles for the year ended December 31, 2023 and 2022:

	December 31, 2023
	Goodwill		Core Deposit Intangible
	(In thousands)
Balance at the beginning of the period	$	25,858	$	2,501
Additions		–		–
Change in deferred tax estimate		–		–
Amortization		–		(390	)
Balance at the end of the period	$	25,858	$	2,111

	December 31, 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		–			(435	)
Balance at the end of the period	$	25,858		$	2,501

No impairment charges were recorded during 2023 or 2022 for goodwill. Management’s assessment of goodwill is performed in accordance with ASC 350-20 – Intangibles-Goodwill and Other, which allows the Company to perform a qualitative assessment of goodwill to determine if it is more likely than not the fair value of the Company’s equity is below its carrying value. The Company performed its qualitative assessment as of December 31, 2023 as well as a quantitative assessment as of December 31, 2023 due to concerns regarding declines in the Company’s stock price. No impairment charges were necessary as a result of the quantitative assessment.

The carrying value and accumulated amortization related to the Company’s core deposit intangible consisted of the following at December 31, 2023 and 2022:

	December 31, 2023			December 31, 2022
	(In thousands)
Core deposit intangible acquired	$	3,329		$	3,329
Less: accumulated amortization		(1,218	)		(828	)
	$	2,111		$	2,501

The following table outlines the estimated amortization expense related to the core deposit intangible during the next five fiscal years:

	(In thousands)
2024	$	336
2025		315
2026		304
2027		291
2028		279
Thereafter		586
	$	2,111