NOTE 7: GOODWILL AND INTANGIBLE ASSETS

The goodwill and intangible assets arising from the fiscal 2022 acquisition of Citizens Bank of Cape Vincent is accounted for in accordance with the accounting guidance in FASB ASC Topic 350, Intangibles- Goodwill and Other. The Company recorded goodwill of $4.2 million and core deposit intangibles of $2.5 million in connection with the acquisition. As of June 30, 2026 (unaudited) and September 30, 2025, intangible assets, net, consisted of $1.1 million and $1.3 million, respectively, of core deposit intangibles, which are amortized over an estimated original useful life of ten years.

The Company performs its annual impairment evaluation on September 30 and will perform more frequently if events and circumstances indicate that the fair value is less than its carrying value.

Goodwill and core deposit intangibles at June 30, 2026 (unaudited) and September 30, 2025 are summarized as follows:

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No impairments of goodwill were recognized for the nine months ended June 30, 2026 or 2025. Amortization expense for other intangible assets was $81,000 and $93,000 for the three months ended June 30, 2026 and 2025, respectively. Amortization expense for other intangible assets was $243,000 and $278,000 for the nine months ended June 30, 2026 and 2025, respectively. The estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter, as of June 30, 2026, is summarized below:

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