CATHAY GENERAL BANCORP Goodwill & Intangibles Disclosure
7. Goodwill and Other Intangible Assets
Goodwill. Total goodwill was $375.7 million as of December 31, 2025, and 2024. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Goodwill and Other Intangible Assets. The Company completed its annual goodwill impairment testing and additionally reviewed the macroeconomic conditions on its business performance and market capitalization and concluded that goodwill was impaired as of December 31, 2025, and 2024.
Core Deposit Intangibles.
The following table presents the gross carrying amount and accumulated amortization of core deposits intangible assets as of December 31, 2025, and 2024:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| ($ In thousands) | ||||||||
| Gross balance | $ | 9,260 | $ | 10,562 | ||||
| Accumulated amortization | (5,936 | ) | (6,292 | ) | ||||
| Impairment | (1,324 | ) | (1,324 | ) | ||||
| Net carrying balance | $ | 2,000 | $ | 2,946 | ||||
There was impairment write-down on core deposit intangibles during the year of December 31, 2025. There were $0.1 million and $0.3 million in impairment on core deposit intangibles during the year of December 31, 2024 and 2023, respectively, included in amortization of core deposit intangibles on the Consolidated Statements of Operations and Comprehensive Income.
The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the core deposit intangible assets were $0.9 million, $1.1 million and $1.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
| Amount | ||||
| ($ In thousands) | ||||
| 2026 | $ | 870 | ||
| 2027 | $ | 870 | ||
| 2028 | $ | 260 | ||
| Total | $ | 2,000 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
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.