Note 5 – Goodwill and Other Intangible Assets

​

The table below sets forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization as of the dates indicated:

​

​

​

The changes in the carrying value of goodwill for the periods indicated were as follows:

​

​

There was no goodwill for the three and nine months ended September 30, 2025 as the Bank did not record any goodwill until the acquisition of Provident on November 15, 2025.

​

During the three months ended September 30, 2026, the Company identified an error related to the acquisition-date fair value adjustment recorded on a FHLB advance assumed in the BankProv acquisition completed on November 15, 2025. The acquisition-date fair value adjustment was recorded in the incorrect direction, resulting in an offsetting overstatement of goodwill and an immaterial impact on subsequent accretion/amortization recognized since the acquisition date.

​

Management evaluated the error in accordance with ASC 250 and SEC Staff Accounting Bulletin Nos. 99 and 108, and concluded that the error was not material to any previously issued financial statements and that correction of the error is not material to the current period. Accordingly, the Company corrected the error during the current quarter, resulting in a decrease in goodwill of approximately $2.0 million and a corresponding decrease in the carrying value of FHLB advances of approximately $2.8 million, net of the deferred tax impact. Additionally, for the year ended December 31, 2025 and for the nine months ended September 30, 2026, pre-tax net income was immaterially overstated by $16,000 and $108,000, respectively, and on a tax effected basis by $11,000 and $77,000, respectively, due to accretion being recorded instead of amortization as a result of the Day 1 fair value adjustment being recorded in reverse. Prior-period financial statements have not been restated.

The following table sets forth the carrying amount of the Company’s other intangible assets, net of accumulated amortization, as of the dates indicated below:

​

​

​

In accordance with the accounting guidance codified in ASC 350-20, the Company performs a test of goodwill for impairment at the reporting segment level on an annual basis, or sooner, if an event occurs or circumstances change which might indicate that it is more-likely-than-not that the fair value of a reporting segment is less than its carrying amount. The Company has one identified reporting segment and assigned goodwill to the banking business reporting segment.

​

The Company performed its annual assessment for the banking business as of December 31, 2025. The assessment included a qualitative assessment which indicated that it was more likely than not that the fair value of the reporting unit exceeded the carrying value. Based upon the assessment, it was determined there was no impairment of the Company’s goodwill as of December 31, 2025.

​

The amortization expense of the Company’s other intangible assets was $892,000 and $37,000 during the three months ended September 30, 2026 and 2025, respectively, and $2.7 million and $112,000 during the nine months ended September 30, 2026 and 2025, respectively.

​

The weighted average original amortization period and weighted average remaining useful life of the Company’s other intangible assets is 10.0 years and 8.8 years, respectively. Management performs an assessment of the remaining useful lives of the Company’s intangible assets on a quarterly basis to determine if such lives remain appropriate.

​

The estimated amortization expense for the remaining useful life of the Company’s other intangible assets is as follows (in thousands):

​