COMMUNITY FINANCIAL SYSTEM, INC. Goodwill & Intangibles Disclosure
NOTE F: GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS
The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows:
December 31, 2025 | | December 31, 2024 | ||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
| Carrying | | Accumulated | | Carrying | | Carrying | | Accumulated | | Carrying | |||||||
(000’s omitted) | Amount |
| Amortization |
| Amount |
| Amount |
| Amortization |
| Amount | |||||||
Amortizing intangible assets: | |
| |
| |
| |
| |
| | |||||||
Core deposit intangibles | $ | 89,273 | $ | (74,519) | $ | 14,754 | $ | 77,373 | $ | (72,225) | $ | 5,148 | ||||||
Other intangibles |
| 144,274 |
| (104,287) |
| 39,987 |
| 135,833 |
| (92,735) |
| 43,098 | ||||||
Total amortizing intangibles | $ | 233,547 | $ | (178,806) | $ | 54,741 | $ | 213,206 | $ | (164,960) | $ | 48,246 | ||||||
The estimated aggregate amortization expense of other intangibles for each of the five succeeding fiscal years ended December 31 is as follows (000’s omitted):
(000’s omitted) | |||
2026 | $ | 15,572 | |
2027 | 9,186 | ||
2028 |
| 7,312 | |
2029 |
| 6,052 | |
2030 |
| 4,873 | |
Thereafter |
| 11,746 | |
Total | $ | 54,741 |
Shown below are the components of the Company’s goodwill at December 31, 2025, 2024, and 2023:
(000’s omitted) | December 31, 2023 | Additions/Adjustments | December 31, 2024 | Additions/Adjustments | December 31, 2025 | ||||||||||
Goodwill | $ | 845,396 | $ | 7,829 | $ | 853,225 | $ | 34,750 | $ | 887,975 | |||||
Under certain circumstances, the Company sells consumer residential mortgage loans in the secondary market and typically retains the right to service the loans sold. These mortgage servicing rights were immaterial at December 31, 2025 and 2024. The total principal balance of loans serviced for others was $560.6 million and $538.1 million at December 31, 2025 and 2024, respectively. The total custodial escrow balances maintained in connection with loans serviced for others was $10.8 million and $10.5 million at December 31, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 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.