Goodwill and Intangibles

12 Months Ended

Jun. 30, 2023

Goodwill and Intangibles

Goodwill and Intangibles

Note 8 – Goodwill and Intangibles

The goodwill and intangible assets arising from acquisitions is accounted for in accordance with the accounting guidance in FASB ASC Topic 350 for Intangibles — Goodwill and Other. The Company recorded goodwill of $4.9 million and core deposit intangibles of $1.4 million in connection with the acquisition of Audubon. The Company also recorded core deposit intangibles totaling $65 thousand and $197 thousand in connection with the acquisitions of Fidelity and Washington, respectively. As of June 30, 2023 and 2022, the other intangibles consisted of $519 thousand and $712 thousand, respectively, of core deposit intangibles, which are amortized over an estimated useful life of ten years.

The Company performs its annual impairment evaluation on June 30 or more frequently if events and circumstances indicate that the fair value of the banking unit is less than its carrying value. During the year ended June 30, 2023, the Company included considerations of the current economic environment in its evaluation, and determined that it is not more likely than not that the carrying value of goodwill is impaired.  No goodwill impairment exists during the year ended June 30, 2023.  

Goodwill and other intangibles at June 30, 2023 and 2022, are summarized as follows:

			Core Deposit
(Dollars in thousands)	Goodwill		Intangibles
Balance, July 1, 2021	$	4,858	$	937
Adjustments:
Additions		—		—
Amortization		—		(225)
Balance, June 30, 2022	$	4,858	$	712
Adjustments:
Additions		—		—
Amortization		—		(193)
Balance, June 30, 2023	$	4,858	$	519

The following tables summarize amortizing intangible assets at June 30, 2023 and 2022:

	June 30, 2023
			Accumulated
(Dollars in thousands)	Gross		Amortization		Net
Core deposit intangibles	$	1,694	$	(1,175)	$	519

	June 30, 2022
			Accumulated
(Dollars in thousands)	Gross		Amortization		Net
Core deposit intangibles	$	1,694	$	(982)	$	712

Aggregate amortization expense was $193 thousand and $225 thousand for the years ended June 30, 2023 and 2022, respectively. Amortization expense for the next five years and thereafter is expected to be as follows:

(Dollars in thousands)
For the year ended June 30,	Expense
2024	$	163
2025		132
2026		101
2027		70
2028		40
2029 and thereafter		13
	$	519