Note 7 – Goodwill and Core Deposit Intangible

The following tables present the changes in the carrying amounts of goodwill and core deposit intangibles for the years ended December 31, 2025 and 2024:

		December 31, 2025
		Goodwill				Core Deposit Intangible
		(In thousands)
Balance at the beginning of the period		$	25,858			$	1,775
Impairment			(25,858	)			–
Amortization			–				(315	)
Balance at the end of the period		$	–			$	1,460

Management engaged a third-party to complete the goodwill impairment testing as of September 30, 2025. The quantitative test indicated that the carrying amount of the goodwill exceeded the fair value of the Company by approximately $25.9 million. On October 15, 2025, the Company’s management, with oversight of the Audit Committee of the Board of Directors of the Company, concluded that, based on its annual impairment analysis, the Company’s goodwill was impaired in accordance with U.S. GAAP. Consequently, the Company recorded a non-cash $25.9 million goodwill impairment charge for the quarter ended September 30, 2025. The Company does not expect that this charge will result in future cash expenditures.

The carrying value and accumulated amortization related to the Company’s core deposit intangible consisted of the following at December 31, 2025 and 2024:

		December 31, 2025				December 31, 2024
		(In thousands)
Core deposit intangible acquired		$	3,329			$	3,329
Less: accumulated amortization			(1,869	)			(1,554	)
		$	1,460			$	1,775

The following table outlines the estimated amortization expense related to the core deposit intangible during the next five fiscal years:

		(In thousands)
2026		$	304
2027			291
2028			279
2029			267
2030			256
Thereafter			63
		$	1,460