Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

In accordance with FASB ASC 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performs its annual goodwill impairment test as of December 31 of each year.  

The Company’s other intangible assets consist of core deposit intangibles, insurance agency customer relationships and insurance agency tradename. They are initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, the insurance agency customer relationships are amortized over 14 years and the insurance agency tradename is amortized over five years.

The carrying amount of goodwill at March 31, 2024, and December 31, 2023, was $96.1 million, respectively.

Other intangible assets as of the dates indicated is summarized below (in thousands):

	Core Deposit		Customer Relationships		Tradename
Amortized other intangible assets:	Intangibles		Intangibles		Intangibles		Total
March 31, 2024:
Beginning balance January 1, 2024, gross	$	17,470	$	5,670	$	63	$	23,203
Less: accumulated amortization		(10,183)		(2,565)		(63)		(12,811)
Balance, March 31, 2024, other intangible assets, net	$	7,287	$	3,105	$	-	$	10,392
December 31, 2023:
Beginning balance January 1, 2023, gross	$	17,470	$	5,670	$	63	$	23,203
Less: accumulated amortization		(9,758)		(2,379)		(63)		(12,200)
Balance, December 31, 2023, other intangible assets, net	$	7,712	$	3,291	$	-	$	11,003

The aggregate amortization expense for other intangible assets for the three months ended March 31, 2024, and 2023, was $612 thousand and $659 thousand, respectively.

As of March 31, 2024, the estimated aggregate amortization expense for future periods for intangibles is as follows (in thousands):

Remainder of 2024	$	1,813
2025		2,256
2026		2,086
2027		1,904
2028		1,139
Thereafter		1,194
Total	$	10,392