Goodwill and Other Intangible Assets
Goodwill
The Corporation conducted its most recent annual impairment testing in May 2025, utilizing a qualitative assessment. Based on this assessment, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There have been no events since the May 2025 impairment test that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in 2025, 2024, or 2023.
The Corporation had goodwill of $1.1 billion at both December 31, 2025 and 2024.
Core Deposit Intangibles
The Corporation has CDIs which are amortized. Changes in the gross carrying amount, accumulated amortization, and net book value for CDIs were as follows: | | | | | | | | | | | |
| (in thousands) | 2025 | 2024 | 2023 |
| Core deposit intangibles | | | |
| Gross carrying amount at the beginning of the year | $ | 88,109 | | $ | 88,109 | | $ | 88,109 | |
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| Accumulated amortization | (65,260) | | (56,449) | | (47,638) | |
| Net book value | $ | 22,849 | | $ | 31,660 | | $ | 40,471 | |
| Amortization during the year | $ | 8,811 | | $ | 8,811 | | $ | 8,811 | |
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Mortgage Servicing Rights
A summary of changes in the balance of the MSRs asset under the fair value measurement method is as follows:
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| (in thousands) | 2025 | 2024 | |
| Mortgage servicing rights | | | |
| Mortgage servicing rights at beginning of period | $ | 87,683 | | $ | 84,390 | | |
| Additions | 8,716 | | 6,707 | | |
| Decay | (8,621) | | (8,060) | | |
| Valuation: | | | |
| Changes in fair value of asset | (1,441) | | 4,646 | | |
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| Mortgage servicing rights at end of period | $ | 86,337 | | $ | 87,683 | | |
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| Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | $ | 6,191,012 | | $ | 6,285,018 | | |
| Mortgage servicing rights to servicing portfolio | 1.39 | % | 1.40 | % | |
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The projections of amortization expense for CDIs and decay for MSRs are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2025. The actual expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future yearly amortization expense for CDIs and decay for MSRs: | | | | | | | | | | |
| (in thousands) | Core Deposit Intangibles | | | Mortgage Servicing Rights |
| 2026 | $ | 8,811 | | | | $ | 10,559 | |
| 2027 | 8,811 | | | | 11,814 | |
| 2028 | 3,485 | | | | 11,616 | |
| 2029 | 1,681 | | | | 10,645 | |
| 2030 | 61 | | | | 9,440 | |
| Beyond 2030 | — | | | | 32,263 | |
Total estimated amortization expense and MSRs decay(a) | $ | 22,849 | | | | $ | 86,337 | |
(a) Includes the decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.
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.