Note 5. Goodwill and Intangible Assets

In accordance with FASB ASC No. 2017-04, “Goodwill and Other (Topic 350),” 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, or more frequently if conditions warrant it.  There were no conditions present to test goodwill at June 30, 2026.

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.

The carrying amount of goodwill at June 30, 2026, and December 31, 2025, was $90.4 million.

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

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¹Removed $3,012 from the beginning gross balance and $1,471 from accumulated amortization for the sale of SBKI in the third quarter of 2025, in the Customer Relationship Intangibles.

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The aggregate amortization expense for other intangible assets for the three and six months ended June 30, 2026, was $454 thousand and $911 thousand, respectively, and for the three and six months ended June 30, 2025, was $566 thousand and $1.1 million, respectively.

As of June 30, 2026, the estimated aggregate amortization expense for future periods for other intangibles is as follows (in thousands):

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