GOODWILL AND OTHER INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2024

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

9. GOODWILL AND CORE DEPOSIT INTANGIBLES, NET

Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired. There were no changes in the carrying amount of goodwill in 2024 and 2023. The balance in goodwill was $52,505,000 at December 31, 2024 and 2023. The Corporation did not complete any acquisitions in 2024 or 2023.

In testing goodwill for impairment at December 31, 2024, the Corporation performed a qualitative assessment based on comparison of the Corporation’s market capitalization to its stockholders’ equity, resulting in the determination that the fair value of its reporting unit, its community banking operation, exceeded its carrying amount. Accordingly, there was no goodwill impairment at December 31, 2024.

There were no goodwill impairment charges recorded in the years ended December 31, 2024, 2023 and 2022.

Information related to the core deposit intangibles is as follows:

(In Thousands)		December 31,
	2024			2023
Gross amount	$	6,639	$	6,639
Accumulated amortization		(4,559)		(4,170)
Net	$	2,080	$	2,469

Amortization expense related to core deposit intangibles is included in other noninterest expense in the consolidated statements of income, as follows:

(In Thousands)	Year Ended December 31,
	2024		2023			2022
Amortization expense	$	389	$	408	$	439

The amount of amortization expense to be recognized in each of the ensuing five years is as follows:

(In Thousands)
2025	$	424
2026		396
2027		361
2028		304
2029		250