Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company completed its annual assessment of the carrying value of goodwill during 2024 and concluded that its carrying value was not impaired. The Company's reporting unit had positive equity and a qualitative assessment was completed, indicating that it was not more likely than not that goodwill was impaired. The following table presents a roll forward of the Company's goodwill activity (in thousands):


	2024		2023

Beginning balance	$	149,902	$	108,941
Goodwill acquired in conjunction with the acquisition of Citizens Commerce (preliminary)	(140)		40,961
Ending balance	$	149,762	$	149,902

See Note Three for additional information on the acquisition of Citizens Commerce.

The Company believes that the customer relationships with the deposits acquired have an intangible value. In connection with acquisitions, the Company recorded a core deposit intangible, which represented the value that the acquiree had with their deposit customers. The fair value was estimated based on a discounted cash flow methodology that considered the type of deposit, estimated deposit retention, the cost of the deposit base and an alternate cost of funds. The following tables present the details of the Company's core deposit intangibles (in thousands):


	2024		2023

Gross carrying amount	$	29,462	$	29,462
Accumulated amortization	(19,180)		(16,796)
	$	10,282	$	12,666

Beginning balance	$	12,666	$	6,793
Core deposit intangible acquired in conjunction with the acquisition of Citizens Commerce	—		8,272
Amortization expense	(2,384)		(2,399)
Ending balance	$	10,282	$	12,666

The core deposit intangibles are being amortized over 10 years. The estimated amortization expense for core deposit intangible assets for each of the next five years is as follows (in thousands):


2025	$	2,172
2026	1,953
2027	1,855
2028	1,713
2029	674
Thereafter	1,915
	$	10,282