Goodwill and Core Deposit Intangible

6 Months Ended

Jun. 30, 2023

Goodwill and Core Deposit Intangible [Abstract]

Goodwill and Core Deposit Intangible

Note 5: Goodwill and Core Deposit Intangible

Goodwill is measured as the excess of the fair value of consideration paid over the fair value of net assets acquired. In accordance

with GAAP, the Company performs annual tests to identify impairment of goodwill and more frequently if events or circumstances

indicate a potential impairment may exist.

No

 goodwill impairment was recorded during the six-months ended June 30, 2023.

The Company is amortizing the core deposit intangible (“CDI”) from the Farmers & Stockmens acquisition over its estimated

useful life of approximately

10

 years using the sum of the years’ digits accelerated method. The Company recognized core deposit

intangible amortization expense of $

0.8

 million and $

1.6

 million for the three- and six-month periods ended June 30, 2023, respectively.

The gross carrying amount of goodwill and the gross carrying amount and accumulated amortization of the CDI at June 30, 2023

and December 31, 2022 were:

The following table shows the estimated future amortization expense for the CDI as of June 30, 2023:

Amount

Years ending December 31,

(Dollars in thousands)

For the six months ending December 31, 2023

$

1,517

For the year ending December 31, 2024

2,762

For the year ending December 31, 2025

2,436

For the year ending December 31, 2026

2,109

For the year ending December 31, 2027

1,783

Gross Carrying

Amount

Accumulated

Amortization

Net Carrying

Amount

(Dollars in thousands)

June 30, 2023

Goodwill

$

12,836

$

-

$

12,836

Core deposit intangible

17,479

2,858

14,621

Total goodwill and intangible assets

$

30,315

$

2,858

$

27,457

December 31, 2022

Goodwill

$

12,836

$

-

$

12,836

Core deposit intangible

17,479

1,234

16,245

Total goodwill and intangible assets

$

30,315

$

1,234

$

29,081