CITY HOLDING COCHCO

CITY HOLDING CO Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20262 min read
GOODWILL AND OTHER INTANGIBLE ASSETS
The Company completed its annual assessment of the carrying value of goodwill during 2025 and concluded that its carrying value was not impaired. The Company's reporting unit had positive equity and a qualitative assessment was completed, indicating that it was not more likely than not that goodwill was impaired. The following table presents a roll forward of the Company's goodwill activity (in thousands):

20252024
Beginning balance$149,762 $149,902 
Goodwill acquired in conjunction with the acquisition of Citizens Commerce — (140)
Ending balance$149,762 $149,762 


The Company believes that the customer relationships with the deposits acquired have an intangible value. In connection with acquisitions, the Company recorded a core deposit intangible, which represented the value that the acquiree had with their deposit customers. The fair value was estimated based on a discounted cash flow methodology that considered the type of deposit, estimated deposit retention, the cost of the deposit base and an alternate cost of funds. The following tables present the details of the Company's core deposit intangibles (in thousands):
20252024
Gross carrying amount$29,462 $29,462 
Accumulated amortization
(21,353)(19,180)
$8,109 $10,282 
Beginning balance$10,282 $12,666 
Amortization expense(2,173)(2,384)
Ending balance$8,109 $10,282 
The core deposit intangibles are being amortized over 10 years. The estimated amortization expense for core deposit intangible assets for each of the next five years is as follows (in thousands):
2026$1,953 
20271,855 
20281,713 
2029674 
2030637 
Thereafter
1,277 
$8,109 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2022Feb 22, 2023
2021Feb 24, 2022
2020Feb 24, 2021
2019Feb 27, 2020
2018Mar 11, 2019
2017Feb 28, 2018
2016Feb 27, 2017
2015Mar 2, 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.

Other Available Disclosures

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