v3.26.1
Note 6 - Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Intangible Asset and Goodwill [Text Block]

NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS

 

The Company’s intangible assets consist of goodwill, core deposit intangible assets arising from acquisitions, and a trademark intangible. At  June 30, 2026 and  December 31, 2025, “Goodwill and other intangible assets, net” in the accompanying consolidated balance sheets totaled $71.7 million and $41.2 million, respectively, and included no accumulated impairment losses.

 

The carrying amount of goodwill at  June 30, 2026 and  December 31, 2025 was $58.3 million and $40.1 million, respectively. The Company recorded $18.2 million of goodwill during 2026, related to the acquisition of WFB. The Company reviews the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if certain impairment indicators exist. No goodwill impairment was recorded during the periods presented.

 

The table below shows a summary of goodwill activity for the periods presented (dollars in thousands).

 

  

June 30, 2026

  

December 31, 2025

 

Beginning balance

 $40,088  $40,088 

Acquisition of WFB

  18,179    

Ending balance

 $58,267  $40,088 

 

Core deposit intangibles have finite lives and are being amortized on an accelerated basis over their estimated useful lives, which range from 10 to 15 years. The Company recorded a core deposit intangible of $13.6 million related to the acquisition of WFB. The table below shows a summary of the core deposit intangible assets as of the dates presented (dollars in thousands).

 

  

June 30, 2026

  

December 31, 2025

 

Gross carrying amount

 $21,055  $7,486 

Accumulated amortization

  (7,718)  (6,490)

Net carrying amount

 $13,337  $996 

 

Amortization expense for the core deposit intangible assets recorded in “Depreciation and amortization” in the accompanying consolidated statements of income totaled approximately $0.6 million and $1.2 million for the three and six months ended June 30, 2026, respectively, and $0.1 million and $0.3 million for the three and six months ended June 30, 2025, respectively.

 

The estimated remaining amortization expense for the Company’s core deposit intangible assets is displayed in the table below (dollars in thousands). The weighted average amortization period remaining for core deposit intangibles is 9.1 years.

 

Remainder of 2026

 $1,198 

2027

  1,939 

2028

  1,702 

2029

  1,475 

2030

  1,366 

Thereafter

  5,657 

Total

 $13,337 

 

The trademark intangible had a carrying value of $0.1 million at  June 30, 2026 and  December 31, 2025.

 

INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)