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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS

The balance of goodwill was $125,520 at December 31, 2024 and $125,520 at December 31, 2023.

Management performs an evaluation of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2024. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2024.

Acquired intangible assets were as follows as of year-end.

 

 

 

2024

 

 

2023

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Core deposit intangible assets(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit intangibles

 

 

12,668

 

 

 

7,662

 

 

 

5,006

 

 

 

12,668

 

 

 

6,178

 

 

 

6,490

 

Total core deposit intangible assets

 

$

12,668

 

 

$

7,662

 

 

$

5,006

 

 

$

12,668

 

 

$

6,178

 

 

$

6,490

 

 

(1)
Excludes fully amortized core deposit intangible assets

Aggregate core deposit intangible amortization expense was $1,484, $1,579 and $1,296 for 2024, 2023 and 2022, respectively.

Activity for mortgage servicing rights (MSRs) and the related valuation allowance follows:

 

 

 

2024

 

 

2023

 

2022

 

Mortgage Servicing Rights:

 

 

 

 

 

 

 

 

Beginning of year

 

$

3,018

 

 

$

2,689

 

$

2,642

 

Additions

 

 

202

 

 

 

659

 

 

397

 

Disposals

 

 

—

 

 

 

—

 

 

—

 

Amortized to expense

 

 

343

 

 

 

330

 

 

350

 

Other Charges

 

 

—

 

 

 

—

 

 

—

 

Change in valuation allowance

 

 

—

 

 

 

—

 

 

—

 

End of year

 

$

2,877

 

 

$

3,018

 

$

2,689

 

 

 

 

 

 

 

 

 

 

Valuation allowance:

 

 

 

 

 

 

 

 

Beginning of year

 

$

—

 

 

$

—

 

$

—

 

Additions expensed

 

 

—

 

 

 

—

 

 

—

 

Reductions credited to operations

 

 

—

 

 

 

—

 

 

—

 

Direct write-offs

 

 

—

 

 

 

—

 

 

—

 

End of year

 

$

—

 

 

$

—

 

$

—

 

The unpaid principal balance of mortgage loans serviced for third parties was $419,407 at December 31, 2024, compared to $442,635 at December 31, 2023 and $456,149 at December 31, 2022.

Aggregate mortgage servicing rights (MSRs) amortization was $343, $330 and $350 for 2024, 2023 and 2022, respectively.

Mortgage loan contractual servicing fees were $1,085, $1,137 and $1,063 for 2024, 2023 and 2022, respectively. Mortgage loan contractual servicing fees are included in Other income on the Consolidated Statements of Operations.

The fair value of servicing rights was $3,854, $3,018, and $2,689 at year-end 2024, 2023 and 2022, respectively. Fair value at year-end 2024 was determined using a discount rate range of 5.3% to 10.4% with the average discount rate of 6.96%, weighted average prepayment speed of 10.83%, depending on the stratification of the specific right, and a weighted average default rate of 0.0%. Fair value at year-end 2023 was determined using a discount rate of 12.0%, prepayment speeds ranging from 4.6% to 11.0%, depending on the stratification of the specific right, and a default rate of 0.0%.

Estimated amortization expense for each of the next five years and thereafter is as follows:

 

 

 

MSRs

 

 

Core deposit
intangibles

 

 

Total

 

2025

 

$

165

 

 

$

1,316

 

 

$

1,481

 

2026

 

 

163

 

 

 

1,193

 

 

 

1,356

 

2027

 

 

159

 

 

 

1,071

 

 

 

1,230

 

2028

 

 

153

 

 

 

782

 

 

 

935

 

2029

 

 

151

 

 

 

282

 

 

 

433

 

Thereafter

 

 

2,086

 

 

 

362

 

 

 

2,448

 

 

 

$

2,877

 

 

$

5,006

 

 

$

7,883