Note 7 - Core Deposit and Customer List Intangible Assets

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

(7) Core Deposit and Customer List Intangible Assets

Bancorp recorded initial CDI assets of $13 million, $4 million, $2 million and $3 million in association with the acquisition of CB in 2022, KB in 2021, KSB in 2019 and TBOC in 2013, respectively.

Changes in the net carrying amount of CDIs follows:

Years ended December 31, (in thousands)	2024			2023			2022
Balance at beginning of period	$	11,944		$	14,958		$	5,596
Added from acquisition		—			—			12,724
Provisional period adjustment		—			—			—
Amortized to expense		(2,966	)		(3,014	)		(3,362	)
Balance at end of period	$	8,978		$	11,944		$	14,958

As a result of the CB acquisition, Bancorp also recorded an initial intangible asset totaling $14 million associated with the customer list of the acquired WM&T business. Similar to CDI assets, this intangible asset also amortizes over its estimated useful life.

Changes in the carrying amount of the CLI follows:

Year ended December 31, (in thousands)	2024			2023			2022
Balance at beginning of period	$	8,360		$	10,032		$	-
Added from acquisition		—			—			14,360
Disposition of LFA		—			—			(2,146	)
Amortized to expense		(1,520	)		(1,672	)		(2,182	)
Balance at end of period	$	6,840		$	8,360		$	10,032

Future CDI and CLI amortization expense is estimated as follows:

(in thousands)	CDI		CLI
2025		2,291		1,368
2026		1,979		1,216
2027		1,668		1,064
2028		1,311		912
2029		888		760
2030		576		608
2031		265		456
2032		-		304
2033		-		152
Total future expense	$	8,978	$	6,840