GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

7. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

On September 8, 2006, the Company acquired a branch office in Richfield, PA. Goodwill associated with this transaction is carried at $2.0 million. On November 30, 2015, the Company acquired FNBPA Bancorp, Inc. and, as a result, the Company carries goodwill of $3.4 million relating to the acquisition. On April 30, 2018, the Company acquired the remainder of the outstanding common stock of Liverpool Community Bank and, as a result, the Company carries goodwill of $3.6 million relating to the acquisition. On May 12, 2023, the Company acquired a branch office (“Path Valley”) in Spring Run, Pennsylvania. Goodwill associated with this transaction is carried at $765,000. Total goodwill at both March 31, 2024 and December 31, 2023 was $9.8 million.

Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually as of December 31, or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. There was no goodwill impairment during the three months ended March 31, 2024 or March 31, 2023.

Intangible Assets

On November 30, 2015, a core deposit intangible in the amount of $303,000 associated with the FNBPA Bancorp, Inc. acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digits basis. Amortization expense recognized for the intangible related to the FNBPA acquisition for the three months ended March 31, 2024 and March 31, 2023 was $3,000 and $4,000, respectively.

On April 30, 2018, a core deposit intangible in the amount of $289,000 associated with the Liverpool Community Bank acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digit basis. Amortization expense recognized for the intangible related to the Liverpool Community Bank acquisition for the three months ended March 31, 2024 and March 31, 2023 was $6,000 and $7,000, respectively.

On May 12, 2023, a core deposit intangible in the amount of $303,000 associated with the Path Valley branch acquisition was recorded and is being amortized over a ten-year period using a sum of the years’ digit basis. Amortization expense recognized for the intangible related to the Path Valley branch acquisition for the three months ended March 31, 2024 was $13,000, while no amortization expense was recorded for the three months ended March 31, 2023.

The following table shows the amortization schedule for each of the intangible assets recorded.

(Dollars in thousands)	Path Valley		FNBPA		LCB
	Acquisition		Acquisition		Acquisition
	Core		Core		Core
	Deposit		Deposit		Deposit
	Intangible		Intangible		Intangible
Beginning Balance at Acquisition Date	$	303	$	303	$	289
Amortization expense recorded prior to January 1, 2023		—		250		167
Amortization expense recorded in the twelve months
ended December 31, 2023		37		37		61
Unamortized balance as of December 31, 2023		266		16		61
Amortization expense recorded in the
three months ended March 31, 2024		13		3		6
Unamortized balance as of March 31, 2024	$	253	$	13	$	55
Scheduled remaining amortization expense for years ended:
December 31, 2024	$	38	$	8	$	17
December 31, 2025		46		5		17
December 31, 2026		40		—		12
December 31, 2027		35		—		7
December 31, 2028		29		—		2
Thereafter		65		—		—