Goodwill and Intangibles

6 Months Ended

Dec. 31, 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 2018 acquisition of Audubon Savings Bank. The Company also recorded core deposit intangibles totaling $65 thousand and $197 thousand in connection with the 2020 acquisitions of Fidelity Savings and Loan Association of Bucks County (“Fidelity”) and Washington Savings Bank (“Washington”), respectively. As of December 31, 2023 and June 30, 2023, the other intangibles consisted of $437 thousand and $519 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, management 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 existed at June 30, 2023. During the six months ended December 31, 2023, management considered the current economic environment in its evaluation, and determined based on the totality of its qualitative assessment that it is not more likely than not that the carrying value of goodwill is impaired. No goodwill impairment existed during the six months ended December 31, 2023.

Goodwill and other intangibles are summarized as follows for the periods presented:

			Core Deposit
(Dollars in thousands)	Goodwill		Intangibles
Balance, June 30, 2023	$	4,858	$	519
Adjustments:
Additions		—		—
Amortization		—		(41)
Balance, September 30, 2023	$	4,858	$	478
Adjustments:
Additions		—		—
Amortization		—		(41)
Balance, December 31, 2023	$	4,858	$	437

			Core Deposit
(Dollars in thousands)	Goodwill		Intangibles
Balance, June 30, 2022	$	4,858	$	712
Adjustments:
Additions		—		—
Amortization		—		(48)
Balance, September 30, 2022	$	4,858	$	664
Adjustments:
Additions		—		—
Amortization		—		(49)
Balance, December 31, 2022	$	4,858	$	615

Aggregate amortization expense was $41 thousand and $82 thousand for the three and six months ended December 31, 2023, respectively, and $49 thousand and $97 thousand for the three and six months ended December 31, 2022, respectively.