Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill and Other Intangible Assets.

Goodwill and Other Intangible Assets

Note 9. Goodwill and Other Intangible Assets

FASB ASC 350, Intangibles - Goodwill and Other, requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstance indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

The following table presents activity for goodwill and other intangible assets, which consist of core deposit intangibles:

	September 30,
(in thousands)	2022		2021
Goodwill at beginning of period	$	19,168	$	1,901
Acquisition		—		17,457
Measurement period adjustment for previous acquisition		—		(190)
Goodwill at end of period	$	19,168	$	19,168
Other intangible assets at beginning of period	$	480	$	22
Acquisition		—		490
Amortization		(81)		(32)
Other intangible assets at end of period	$	399	$	480

The Company has identified one reporting unit for purposes of testing goodwill for impairment, which is the Company as a whole.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At August 31, 2022, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

The following table presents the gross carrying amount and accumulated amortization for the Company’s other intangible assets, which consist of core deposit intangibles:

	September 30,
(in thousands)	2022		2021
Gross carrying amount	$	517	$	517
Accumulated amortization		(118)		(37)
Net book value	$	399	$	480

At September 30, 2022, the weighted-average remaining life of the Company’s other intangible assets was 4.06 years.

The following table presents estimated future amortization expense for other intangible assets:

(in thousands)
2023	$	72
2024		63
2025		55
2026		49
2027		43
Thereafter		117
Total	$	399