NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 7.
FORECLOSED REAL ESTATE
There was no foreclosed real estate as of December 31, 2025 and 2024. During 2025 and 2024, there were no foreclosure losses charged to the allowance for credit losses. At December 31, 2025 and 2024, the Company held one commercial real estate loan in process of foreclosure with a value of $ 2,543,255 and $ 2,488,518, respectively.
NOTE 8.
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill The acquisition of Medora created goodwill during 2025. The changes in goodwill were as follows:
Balance, Beginning of Year Additions from Acquisition of Medora Balance, End of Year
$
$
- 6,025,029 6,025,029
Impairment exists when a reporting unit ' s carrying value exceeds its fair value. At December 31, 2025, the Company ' s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.
Core Deposit Intangible The acquisition of Medora also created core deposit intangibles. The core deposit intangible as of December 31, 2025, was as follows:
Core Deposit Intangible Accumulated Amortization Net Core Deposit Intangible
$
$
1,835,384( 15,295)
1,820,089
The estimated aggregate future amortization expense for each of the next five years is $ 185,538 per year.
NOTE 9.
SUBORDINATED DEBT
On February 1, 2022, the Company issued $ 10,000,000 of subordinated notes.
The interest rate on $ 8,000,000 is a 3.25 % fixed-to-floating rate; fixed through February 1, 2027 and matures February 1, 2032. The notes may not be redeemed before the fifth anniversary. After the fifth anniversary, the notes may be redeemed at the option of the issuer. Redemption price is equal to 100 % of the outstanding principal plus accrued but unpaid interest.
The interest rate on the remaining $ 2,000,000 is a 3.875 % fixed-to-floating rate; fixed through February 1, 2032 and matures February 1, 2037. The notes may not be redeemed before the tenth anniversary. After the tenth anniversary, the notes may be redeemed at the option of the issuer. Redemption price is equal to 100 % of the outstanding principal plus accrued but unpaid interest.
2025 NWSB Annual Report | 45