NOTE 5 – GOODWILL AND ACQUIRED INTANGIBLE ASSETS

The balance of goodwill was $2,452 as of June 30, 2026 and 2025. The following table summarizes the Company’s acquired intangible assets as of June 30, 2026 and 2025.

Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset might be impaired. Impairment exists when a reporting unit’s carrying amount exceeds its fair value. For the goodwill impairment analysis, the Company is the only reporting unit. Management performed a quantitative impairment assessment as of April 30, 2026 which indicated that there was no impairment as of the measurement date. Goodwill is the only intangible asset on the Company’s balance sheet with an indefinite life. Management will continue to monitor its goodwill for possible impairment.

The core deposit intangible asset is amortized on a straight-line basis over ten years. The Company recorded intangible amortization expense of $57 in 2026 and $56 in 2025. The intangible amortization expense is expected to be $57 per year for each of the next three fiscal years, $43 in the fourth fiscal year, and $30 in the fifth fiscal year.