Goodwill and Intangible Assets
Intangible assets at December 31, 2025 and 2024 are summarized as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| (In thousands) |
| | | |
| Goodwill | $ | 110,715 | | | $ | 110,715 | |
| Core deposit intangibles | 6,946 | | | 8,964 | |
| Other intangible assets | 1,248 | | | — | |
| Mortgage servicing rights | 1,393 | | | 1,329 | |
| $ | 120,302 | | | $ | 121,008 | |
Mortgage servicing rights' amortization expense for the years ended December 31, 2025, 2024, and 2023 amounted to $214,000, $241,000, and $239,000, respectively. Core deposit intangible amortization expense for the years ended December 31, 2025, 2024, and 2023 totaled $2.0 million, $2.2 million, and $2.4 million, respectively. Other intangible assets expense for the year ended December 31, 2025 totaled $152,000. During the years ended December 31, 2024 and 2023, there was no other intangible assets expense.
Scheduled amortization of core deposit intangibles for each of the next five years and thereafter is as follows:
| | | | | | | | |
| Year Ended December 31, | | Core Deposit Intangible Amortization |
| | (In thousands) |
| | |
| 2026 | | $ | 1,829 | |
| 2027 | | 1,615 | |
| 2028 | | 1,361 | |
| 2029 | | 994 | |
| 2030 | | 657 | |
| Thereafter | | 490 | |
| Total | | $ | 6,946 | |
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.