CIVISTA BANCSHARES, INC. Goodwill & Intangibles Disclosure
NOTE 8 - GOODWILL AND INTANGIBLE ASSETS
The balance of goodwill was $130,438 at December 31, 2025 and $125,520 at December 31, 2024. The 2025 increase in goodwill of $4,918 is entirely due to the FSB acquisition that closed in November 2025. See Note 2 for additional details related to the FSB acquisition.
Management performs an evaluation of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2025. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2025.
Acquired intangible assets were as follows as of year-end.
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2025 |
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2024 |
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Gross |
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Accumulated |
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Net |
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Gross |
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Accumulated |
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Net |
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Core deposit intangible assets(1): |
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Core deposit intangibles |
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12,668 |
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8,968 |
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3,700 |
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12,668 |
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7,662 |
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5,006 |
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Intangible assets acquired |
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6,975 |
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258 |
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6,717 |
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— |
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— |
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— |
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Total core deposit intangible assets |
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$ |
19,643 |
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$ |
9,226 |
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$ |
10,417 |
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$ |
12,668 |
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$ |
7,662 |
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$ |
5,006 |
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Aggregate core deposit intangible amortization expense was $1,564, $1,484 and $1,579 for 2025, 2024 and 2023, respectively.
Activity for mortgage servicing rights (MSRs) and the related valuation allowance follows:
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2025 |
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2024 |
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2023 |
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Mortgage Servicing Rights: |
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Beginning of year |
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$ |
2,877 |
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$ |
3,018 |
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$ |
2,689 |
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Additions |
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114 |
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202 |
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|
659 |
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Disposals |
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— |
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— |
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— |
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Amortized to expense |
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308 |
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343 |
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330 |
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Other Charges |
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— |
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— |
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— |
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Change in valuation allowance |
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— |
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— |
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— |
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End of year |
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$ |
2,683 |
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$ |
2,877 |
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$ |
3,018 |
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Valuation allowance: |
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Beginning of year |
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$ |
— |
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$ |
— |
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$ |
— |
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Additions expensed |
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— |
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— |
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— |
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Reductions credited to operations |
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— |
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— |
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— |
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Direct write-offs |
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— |
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— |
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— |
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End of year |
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$ |
— |
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$ |
— |
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$ |
— |
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The unpaid principal balance of mortgage loans serviced for third parties was $390,955 at December 31, 2025, compared to $419,407 at December 31, 2024 and $442,635 at December 31, 2023.
Aggregate mortgage servicing rights (MSRs) amortization was $308, $343 and $330 for the years ended December 31, 2025, 2024 and 2023, respectively.
Custodial escrow balances, which are reported as deposits on the Consolidated Balance Sheets, maintained in connection with serviced loans were $5,846 and $5,748 as of December 31, 2025 and 2024, respectively.
Mortgage loan contractual servicing fees were $1,015, $1,085 and $1,137 for 2025, 2024 and 2023, respectively. Mortgage loan contractual servicing fees are included in Other income on the Consolidated Statements of Operations.
The fair value of servicing rights was $3,313, $3,854 and $3,018 at December 31, 2025, 2024 and 2023, respectively. Fair value at December 31, 2025 was determined using a discount rate range of 4.44% to 8.98% with the average discount rate of 6.41%, weighted average prepayment speed of 13.69%, depending on the stratification of the specific right, and a weighted average default rate of 0.0%. Fair value at December 31, 2024 was determined using a discount rate range of 5.3% to 10.4% with the average discount rate of 6.96%, weighted average prepayment speed of 10.83%, depending on the stratification of the specific right, and a weighted average default rate of 0.0%. Management determined that no valuation allowance was necessary as of December 31, 2025, 2024 and 2023 based on the estimated fair value of servicing rights exceeding the carrying value.
Estimated amortization expense for each of the next five years and thereafter is as follows:
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MSRs |
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Core deposit |
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Total |
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2026 |
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$ |
157 |
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$ |
2,711 |
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$ |
2,868 |
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2027 |
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154 |
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2,395 |
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2,549 |
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2028 |
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149 |
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1,923 |
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2,072 |
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2029 |
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147 |
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1,218 |
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1,365 |
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2030 |
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146 |
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944 |
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1,090 |
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Thereafter |
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1,930 |
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1,226 |
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3,156 |
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$ |
2,683 |
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$ |
10,417 |
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$ |
13,100 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 15, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Mar 15, 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.