Note 6 - Goodwill and Acquired Intangible Assets

12 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6 – GOODWILL AND ACQUIRED INTANGIBLE ASSETS

The change in goodwill was as follows:

	2023		2022
Beginning of year	$	2,452	$	836
Acquired goodwill		—		1,616
Ending balance as of June 30,	$	2,452	$	2,452

The following table summarizes the Corporation’s acquired intangible assets as of June 30, 2023 and 2022.

	June 30, 2023				June 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit intangible	$	565	$	151	$	565	$	95

Goodwill and the core deposit intangible assets resulted from the acquisition of Peoples Bancorp of Mt. Pleasant, Inc. that was completed on January 1, 2020, and the branch acquisition that was completed on July 16, 2021. Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset might be impaired. Impairment exists when a reporting unit’s carrying amount exceeds its fair value. For the goodwill impairment analysis, the Corporation is the only reporting unit. Management performed a quantitative impairment assessment at April 30, 2023. The assessment estimated fair value on an income approach that incorporated a discounted cash flow model that involved management assumptions based upon future growth and earnings projections. The results of the assessment indicated no impairment as of the measurement date. Goodwill is the only intangible asset on the Corporation’s balance sheet with an indefinite life. Management will continue to monitor its goodwill for possible impairment.

The core deposit intangible asset is amortized on a straight-line basis over ten years. The Corporation recorded intangible amortization expense of $56 in 2023 and $54 in 2022. The intangible amortization expense is expected to be $57 per year for each of the next four fiscal years and $186 thereafter.