Beacon Financial CorpBBT

Beacon Financial Corp Goodwill & Intangibles Disclosure

10-KFiled Mar 2, 20262 min read
Goodwill and Other Intangible Assets
The changes in the carrying value of goodwill for the periods indicated were as follows:
 Year Ended December 31,
 20252024
 (In Thousands)
Balance at beginning of year$241,222 $241,222 
Additions110,391 — 
Balance at end of year$351,613 $241,222 
The following is a summary of the Company's other intangible assets:
 At December 31, 2025At December 31, 2024
 Gross
Amount		Accumulated
Amortization		Carrying
Amount		Gross
Amount		Accumulated
Amortization		Carrying
Amount
 (In Thousands)
Other intangible assets:
Core deposits$204,680 $28,400 $176,280 $32,387 $16,015 $16,372 
Trade name— — — 1,600 511 1,089 
Customer relationships intangible asset14,000 718 13,282 — — — 
Total other intangible assets$218,680 $29,118 $189,562 $33,987 $16,526 $17,461 
The addition of goodwill at December 31, 2025 is due to excess of the purchase price paid over the fair value of the net assets acquired from the Transaction. In connection with the Transaction, an intangible asset for wealth and investment services for customer relationships was recognized with a fair value of $14.0 million.
The weighted-average amortization period for the intangible assets is 11.5 years. During the year ended December 31, 2025, the Company wrote off the trade name associated with BankRI in connection with the Bank Mergers. The expense was recorded in merger and restructuring expense in the accompanying consolidated statements of income. There were no impairment losses relating to other acquisition-related intangible assets recorded during the years ended December 31, 2025, 2024 and 2023.
The estimated aggregate future amortization expense for other intangible assets for each of the next five years and thereafter is as follows:
Year ended December 31:Amount
(In Thousands)
2026$32,506 
202729,009 
202825,512 
202922,016 
203018,519 
Thereafter62,000 
Total$189,562 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025

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.

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