Note 7. Goodwill and Intangible Assets

Goodwill and Intangible Assets:

In accordance with FASB ASC 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.  The Company performs its annual goodwill impairment test as of December 31, of each year, and for 2025 the results of the qualitive assessment provided no indication of potential impairment. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes.

The Company’s other intangible assets consist of core deposit intangibles and customer relationship intangibles. They are initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits and the leasing company’s client list is amortized over 8 years. During the third quarter of 2025, the Company sold SBKI (see Note 2 – Sale of Insurance Company for more information) and its customer relationship intangibles were written off.

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The carrying amount of goodwill at December 31, 2025, was $90.4 million and $96.1 million at December 31, 2024. The reduction was from the write-off of goodwill from the sale of SBKI.

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Other intangible assets as of the dates indicated is summarized below (in thousands):

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The aggregate amortization expense for other intangibles assets for the year ended December 31, 2025, was $2.2 million, for the year ended December 31, 2024, was $2.4 million, and for the year ended December 31, 2023, was $2.6 million.

The estimated aggregate amortization expense for future periods for other intangible assets is as follows (in thousands):

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