Note 5 - Core Deposit and Customer List Intangible Assets

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

(5) Core Deposit and Customer List Intangible Assets

Bancorp recorded CDI assets of $13 million, $4 million, $2 million and $3 million in association with the acquisitions of CB in 2022, KB in 2021, KSB in 2019 and TBOC in 2013, respectively.

Changes in the net carrying amount of CDIs follows:

	Three months ended						Six months ended
	June 30,						June 30,
(in thousands)	2024			2023			2024			2023
Balance at beginning of period	$	11,272		$	14,196		$	11,944		$	14,958
Amortization		(671	)		(754	)		(1,343	)		(1,516	)
Balance at end of period	$	10,601		$	13,442		$	10,601		$	13,442

As a result of the CB acquisition, Bancorp also recorded intangible assets totaling $14 million associated with the customer lists of the acquired WM&T business. Similar to CDI assets, this intangible asset also amortizes over its estimated useful life.

Changes in the net carrying amount of the CLI follows:

	Three months ended						Six months ended
	June 30,						June 30,
(in thousands)	2024			2023			2024			2023
Balance at beginning of period	$	7,980		$	9,614		$	8,360		$	10,032
Amortization		(380	)		(418	)		(760	)		(836	)
Balance at end of period	$	7,600		$	9,196		$	7,600		$	9,196

Future CDI and CLI amortization expense is estimated as follows:

(in thousands)	CDI		CLI
Remainder of 2024	$	1,344	$	760
2025		2,375		1,368
2026		2,063		1,216
2027		1,752		1,064
2028		1,339		912
2029		888		760
2030		576		608
2031		264		456
2032		-		304
2033		-		152
Total future expense	$	10,601	$	7,600