GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2023

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

7. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

On September 8, 2006, the Company acquired a branch office in Richfield, PA. Goodwill associated with this transaction is carried at $2.0 million. On November 30, 2015, the Company acquired FNBPA Bancorp, Inc. and, as a result, the Company carries goodwill of $3.4 million relating to the acquisition. On April 30, 2018, the Company acquired the remainder of the outstanding common stock of Liverpool Community Bank and, as a result, the Company carries goodwill of $3.6 million relating to the acquisition. On May 12, 2023, the Company acquired a branch office (“Path Valley”) in Spring Run, Pennsylvania. Goodwill associated with this transaction is carried at $765,000.

Total goodwill at September 30, 2023 and December 31, 2022 was $9.8 million and $9.0 million, respectively. Goodwill is not amortized but is tested annually for impairment as of December 31, or more frequently if certain events occur which might indicate goodwill has been impaired. There was no goodwill impairment during the nine months ended September 30, 2023 or September 30, 2022.

Intangible Assets

On November 30, 2015, a core deposit intangible in the amount of $303,000 associated with the FNBPA Bancorp, Inc. acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digits basis. Amortization expense recognized for the intangibles related to the FNBPA acquisition for the three and nine months ended September 30, 2023 was $4,000 and $12,000, respectively, and for the three and nine months ended September 30, 2022 was $5,000 and $16,000, respectively.

On April 30, 2018, a core deposit intangible in the amount of $289,000 associated with the Liverpool Community Bank acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digit basis. Amortization expense recognized for the intangible related to the Liverpool Community Bank acquisition for the three and nine months ended September 30, 2023 was $7,000 and $21,000, respectively, and for the three and nine months ended September 30, 2022 was $9,000 and $25,000, respectively.

On May 12, 2023, a core deposit intangible in the amount of $303,000 associated with the Path Valley branch acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digit basis. Amortization expense recognized for the intangible related to the Path Valley branch acquisition for the three and nine months ended September 30, 2023 was $14,000 and $23,000, respectively, while no amortization expense was recorded for the three and nine months ended September 30, 2022.

The following table shows the amortization schedule for each of the intangible assets recorded.

(Dollars in thousands)	Path Valley		FNBPA		LCB
	Acquisition		Acquisition		Acquisition
	Core		Core		Core
	Deposit		Deposit		Deposit
	Intangible		Intangible		Intangible
Beginning Balance at Acquisition Date	$	303	$	303	$	289
Amortization expense recorded prior to January 1, 2022		—		250		167
Amortization expense recorded in the twelve months
ended December 31, 2022		—		21		33
Unamortized balance as of December 31, 2022		—		32		89
Amortization expense recorded in the
nine months ended September 30, 2023		23		12		21
Unamortized balance as of September 30, 2023	$	280	$	20	$	68
Scheduled remaining amortization expense for years ended:
December 31, 2023	$	14	$	4	$	7
December 31, 2024		51		11		23
December 31, 2025		46		5		17
December 31, 2026		40		—		12
December 31, 2027		35		—		7
Thereafter		94		—		2