ALERUS FINANCIAL CORP Goodwill & Intangibles Disclosure
NOTE 8 Goodwill and Other Intangible Assets
Goodwill was $85.6 million as of both December 31, 2025 and 2024.
The following table summarizes the carrying amounts of goodwill, by segment, as of December 31, 2025 and 2024:
| December 31, | December 31, | |||||||
| (dollars in thousands) | 2025 | 2024 | ||||||
| Banking | $ | 74,111 | $ | 74,111 | ||||
| Retirement and benefit services | 11,523 | 11,523 | ||||||
| Total goodwill | $ | 85,634 | $ | 85,634 | ||||
The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| (dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Total | Gross Carrying Amount | Accumulated Amortization | Total | ||||||||||||||||||
| Identifiable customer intangibles | $ | 27,504 | $ | (22,456 | ) | $ | 5,048 | $ | 41,423 | $ | (33,736 | ) | $ | 7,687 | ||||||||||
| Core deposit intangible assets | 41,092 | (12,769 | ) | 28,323 | 41,092 | (4,897 | ) | 36,195 | ||||||||||||||||
| Total intangible assets | $ | 68,596 | $ | (35,225 | ) | $ | 33,371 | $ | 82,515 | $ | (38,633 | ) | $ | 43,882 | ||||||||||
Aggregate amortization expense for the years ended December 31, 2025, 2024, and 2023 was $10.5 million, $6.8 million, and $5.3 million, respectively.
Estimated aggregate amortization expense for future years is as follows:
| (dollars in thousands) | Amount | |||
| 2026 | $ | 7,569 | ||
| 2027 | 6,389 | |||
| 2028 | 5,516 | |||
| 2029 | 4,512 | |||
| 2030 | 3,903 | |||
| Thereafter | 5,482 | |||
| Total | $ | 33,371 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 13, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 26, 2020 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.