GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill totaled $44.2 million as of both December 31, 2023 and 2022. There were no goodwill impairment charges in 2023 based on the annual goodwill assessment. On February 28, 2022, ACNB Insurance Services, Inc. completed its acquisition of Hockley & O’Donnell of Gettysburg, Pennsylvania. The purchase price was $7.8 million and was funded with all cash and no additional contingent payments were required. The acquisition of Hockley & O’Donnell resulted in goodwill of approximately $2.1 million and generated $5.7 million in customer list and non-compete covenants intangible assets.

Goodwill, which has an indefinite useful life, is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. The Corporation did not identify any goodwill impairment on ACNB Insurance Services, Inc. or the Bank’s outstanding goodwill from its most recent testing. There were no impairment losses or accumulated impairment losses associated with goodwill as of December 31, 2023 and 2022.

The carrying value and accumulated amortization of the intangible assets and core deposit intangibles are as follows:


	2023				2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
ACNB Insurance Services - amortizing intangible assets	$	16,331	$	8,956	$	16,151	$	8,177
Core deposit intangibles	5,978		4,271		5,978		3,620
	$	22,309	$	13,227	$	22,129	$	11,797

Amortization expense was $1.4 million and $1.5 million for the years ended December 31, 2023 and 2022, respectively.

The following table shows the amortization expense of the intangible assets for future periods:


Year	(in thousands)
2024	$	1,244
2025	1,115
2026	1,004
2027	857
2028	711
Thereafter	4,151
	$	9,082