Note 7 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company’s intangible assets consist of goodwill, core deposit intangible assets arising from acquisitions, and a trademark intangible. At December 31, 2023 and 2022, “Goodwill and other intangible assets, net” in the accompanying consolidated balance sheets totaled $42.3 million and $43.1 million, respectively, and included no accumulated impairment losses.

The carrying amount of goodwill at December 31, 2023 and 2022 was $40.1 million. The trademark intangible had a carrying value of $0.1 million at December 31, 2023 and 2022.

In accordance with ASC Topic 350, “Intangibles – Goodwill and Other,” the Company reviews the carrying value of indefinite-lived intangible assets at least annually, or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing on October 31, 2023 and determined that there was no impairment to its goodwill or trademark intangible asset.

Core deposit intangibles have finite lives and are being amortized on an accelerated basis over their estimated useful lives, which range from 10 to 15 years. The table below shows a summary of the core deposit intangible assets as of the dates presented (dollars in thousands).

	December 31,
Core deposit intangibles	2023			2022
Gross carrying amount	$	7,486		$	7,486
Accumulated amortization		(5,354	)		(4,527	)
Net carrying amount	$	2,132		$	2,959

Amortization expense for the core deposit intangible assets recorded in “Depreciation and amortization” in the accompanying consolidated statements of income totaled approximately $0.8 million, $0.9 million, and $1.0 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The future amortization schedule for the Company’s core deposit intangible assets is displayed in the table below (dollars in thousands). The weighted average amortization period remaining for core deposit intangibles is 5.4 years.

2024		624
2025		512
2026		398
2027		278
2028		161
Thereafter		159
	$	2,132