Note 5 - Core Deposit and Customer List Intangible Assets

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

(5) 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 acquisitions of CB in 2022, KB in 2021, KSB in 2019 and TBOC in 2013, respectively.

Changes in the net carrying amount of CDIs follows:

	Three months ended
	March 31,
(in thousands)	2025			2024
Balance at beginning of period	$	8,978		$	11,944
Amortization		(572	)		(672	)
Balance at end of period	$	8,406		$	11,272

As a result of the CB acquisition, Bancorp also recorded initial intangible assets 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 net carrying amount of the CLI follows:

	Three months ended
	March 31,
(in thousands)	2025			2024
Balance at beginning of period	$	6,840		$	8,360
Amortization		(342	)		(380	)
Balance at end of period	$	6,498		$	7,980

Future CDI and CLI amortization expense is estimated as follows:

(in thousands)	CDI		CLI
Remainder of 2025	$	1,719	$	1,026
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	$	8,406	$	6,498