Bridgewater Bancshares Inc Goodwill & Intangibles Disclosure
Note 8: Goodwill and Other Intangible Assets
Goodwill was $12.0 million at both December 31, 2025 and 2024. Goodwill is not amortized but is subject to, at a minimum, an annual test for impairment. Other intangible assets consist of core deposit relationships and favorable lease terms.
The following table presents a summary of other intangible assets at December 31, 2025 and 2024:
December 31, | ||||||
(dollars in thousands) | | 2025 | | 2024 | ||
Core Deposit Intangible | $ | 7,740 | $ | 7,740 | ||
Favorable Lease |
| 445 |
| 445 | ||
Subtotal |
| 8,185 |
| 8,185 | ||
Accumulated Amortization |
| (1,255) |
| (335) | ||
Totals | $ | 6,930 | $ | 7,850 | ||
Amortization expense of other intangible assets for the years ended December 31, 2025, 2024 and 2023 was $921,000, $78,000 and $100,000, respectively. The core deposit intangible asset is amortized over its estimated useful life of ten years.
The following table presents the estimated future amortization of the core deposit intangible and favorable lease asset for the next five years and thereafter. The projections of amortization expense are based on existing asset balances as of December 31, 2025.
Core Deposit | Favorable | |||||
(dollars in thousands) | Intangible | | Lease | |||
2026 | $ | 871 |
| 34 | ||
2027 |
| 852 |
| 34 | ||
2028 |
| 830 |
| 34 | ||
2029 |
| 803 |
| 18 | ||
2030 |
| 773 |
| — | ||
Thereafter |
| 2,681 |
| — | ||
Totals | $ | 6,810 | $ | 120 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 11, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 14, 2019 | |
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.