Goodwill and Core Deposit Intangible

9 Months Ended

Sep. 30, 2024

Goodwill and Core Deposit Intangible

Goodwill and Core Deposit Intangible

Note 5:   Goodwill and Core Deposit Intangible

Goodwill is measured as the excess of the fair value of consideration paid over the fair value of net assets acquired. In accordance with GAAP, the Company performs annual tests to identify impairment of goodwill and more frequently if events or circumstances indicate a potential impairment may exist. No goodwill impairment was recorded during the nine months ended September 30, 2024.

The Company is amortizing the core deposit intangible (“CDI”) over its estimated useful life of approximately 10 years from the date of each respective acquisition using the sum of the years’ digits accelerated method.

The gross carrying amount of goodwill and the gross carrying amount and accumulated amortization of the CDI at September 30, 2024 and December 31, 2023 were as follows:

	Gross Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount
	(Dollars in thousands)
September 30, 2024
Goodwill	$	14,135	$	—	$	14,135
Core deposit intangible		21,938		7,453		14,485
Total goodwill and intangible assets	$	36,073	$	7,453	$	28,620
December 31, 2023
Goodwill	$	14,135	$	—	$	14,135
Core deposit intangible		21,938		4,738		17,200
Total goodwill and intangible assets	$	36,073	$	4,738	$	31,335

The estimated aggregate future amortization expense over the next five years for the CDI is as follows at September 30, 2024:

(Dollars in thousands)
For the three months ending December 31, 2024	$	854
For the year ending December 31, 2025		3,155
For the year ending December 31, 2026		2,739
For the year ending December 31, 2027		2,325
For the year ending December 31, 2028		1,909