Note 5 - Core Deposit and Customer List Intangible Assets

6 Months Ended

Jun. 30, 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						Six months ended
	June 30,						June 30,
(in thousands)	2025			2024			2025			2024
Balance at beginning of period	$	8,406		$	11,272		$	8,978		$	11,944
Amortization		(573	)		(671	)		(1,145	)		(1,343	)
Balance at end of period	$	7,833		$	10,601		$	7,833		$	10,601

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						Six months ended
	June 30,						June 30,
(in thousands)	2025			2024			2025			2024
Balance at beginning of period	$	6,498		$	7,980		$	6,840		$	8,360
Amortization		(342	)		(380	)		(684	)		(760	)
Balance at end of period	$	6,156		$	7,600		$	6,156		$	7,600

Future CDI and CLI amortization expense is estimated as follows:

(in thousands)	CDI		CLI
Remainder of 2025	$	1,146	$	684
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	$	7,833	$	6,156