BAR HARBOR BANKSHARES Goodwill & Intangibles Disclosure
NOTE 6. GOODWILL AND OTHER INTANGIBLES
The activity impacting goodwill in 2025 and 2024 is as follows:
(in thousands) | | December 31, 2025 | | December 31, 2024 | ||
Balance at beginning of year | $ | 119,477 | $ | 119,477 | ||
Acquisition (1) |
| 22,342 |
| — | ||
Balance at end of year | $ | 141,819 | $ | 119,477 | ||
| (1) | In the third quarter 2025, the Company completed its acquisition of Woodsville and recorded $22.3 million in goodwill. Refer to Note 2 for further details. |
Impairment exists when a reporting unit’s carrying amount exceeds its fair value. In accordance with ASC 350-20, the Company elected to perform a qualitative assessment as of December 31, 2025, to determine whether it was more likely than not that the fair value of the reporting unit exceeded its carrying amount, including goodwill. In making this determination, management evaluated relevant events and circumstances, including macroeconomic conditions, industry and market considerations, financial performance trends, and other entity-specific factors. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. No goodwill impairment was recognized for the years ended 2025, 2024, 2023. The components of other intangible assets in 2025 and 2024 are as follows:
December 31, 2025 | |||||||||
Gross | Accumulated | Net Intangible | |||||||
(in thousands) | | Intangible Assets | | Amortization | | Assets | |||
Core deposit intangible (non-maturity deposits) (1) | $ | 22,691 | $ | (6,969) | $ | 15,722 | |||
Customer list and other intangibles |
| 2,120 |
| (1,435) |
| 685 | |||
Total | $ | 24,811 | $ | (8,404) | $ | 16,407 | |||
| (1) | In the third quarter 2025, the Company completed its acquisition of Woodsville and recorded $14.0 million in CDI assets that will amortize over a 10 year period. Refer to Note 2 for further details. |
December 31, 2024 | |||||||||
Gross | Accumulated | Net Intangible | |||||||
(in thousands) | | Intangible Assets | | Amortization | | Assets | |||
Core deposit intangible (non-maturity deposits) | $ | 9,483 | $ | (6,423) | $ | 3,060 | |||
Customer list and other intangibles |
| 2,118 |
| (1,240) |
| 878 | |||
Total | $ | 11,601 | $ | (7,663) | $ | 3,938 | |||
Other intangible assets are amortized on a straight-line basis over their estimated lives, which range from five years to 11 years. Amortization expenses related to intangibles totaled $1.5 million in 2025, $932 thousand in 2024 and $932 thousand in 2023.
The estimated aggregate future amortization expense for other intangible assets remaining at year end 2025 is as follows:
Other Intangible | |||
(in thousands) | | Assets | |
2026 | $ | 2,330 | |
2027 | 2,330 | ||
2028 |
| 2,357 | |
2029 |
| 1,583 | |
2030 |
| 1,398 | |
2031 and thereafter |
| 6,409 | |
Total | $ | 16,407 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 12, 2019 | |
| 2017 | Mar 13, 2018 | |
| 2016 | Mar 14, 2017 | |
| 2015 | Mar 14, 2016 | |
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.