Note 7—GOODWILL, CORE DEPOSIT INTANGIBLE

Intangible assets (excluding goodwill) consisted of the following:

Schedule of Intangible Assets excluding Goodwill 

Based on the core deposit and other intangibles as of December 31, 2025, the following table presents the aggregate amortization expense for each of the succeeding years ending December 31:

Schedule of Aggregate Amortization Expenses

Amortization of the intangibles amounted to $158 thousand, $158 thousand, and $158 thousand for the years ended December 31, 2025, 2024 and 2023, respectively. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Qualitative factors are assessed to first determine if it is more likely than not (more than 50%) that the carrying value of goodwill is less than fair value. During the year ended December 31, 2025, qualitative factors indicated it was more likely than not that the carrying value of goodwill was less than fair value, there were no indicators of impairment at December 31, 2025 and no quantitative testing was performed.

The Company’s carrying amount of goodwill at December 31, 2025, December 31, 2024, and changes to the goodwill are summarized as follows:

Schedule of Goodwill