Eastern Bankshares, Inc.EBC
Eastern Bankshares, Inc. Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
The table below sets forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization as of the dates indicated below. With regard to the year ended December 31, 2023, the information presented within this Note excludes discontinued operations. Refer to Note 24, “Discontinued Operations” for further discussion regarding discontinued operations.
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Balances not subject to amortization | |||||||||||
| Goodwill | $ | 1,117,148 | $ | 914,957 | |||||||
| Balances subject to amortization | |||||||||||
| Core deposit intangibles | 164,280 | 111,296 | |||||||||
| Customer list intangible | 18,711 | 22,841 | |||||||||
| Trade name intangible | 791 | 1,064 | |||||||||
| Total balances subject to amortization | 183,782 | 135,201 | |||||||||
Total goodwill and other intangible assets (1) | $ | 1,300,930 | $ | 1,050,158 | |||||||
(1)The increase in goodwill and other intangible assets from December 31, 2024 to December 31, 2025 was due to goodwill and a core deposit intangible recorded during the fourth quarter of 2025 in connection with the HarborOne merger. Refer to Note 3, Mergers and Acquisitions for further information regarding the Company’s merger with HarborOne.
The changes in the carrying value of goodwill for the periods indicated were as follows:
| For the Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Balance at beginning of year | $ | 914,957 | $ | 557,635 | |||||||
| Goodwill recorded during the year | 202,191 | 357,322 | |||||||||
| Balance at end of year | $ | 1,117,148 | $ | 914,957 | |||||||
The following table sets forth the carrying amount of the Company’s other intangible assets, net of accumulated amortization, as of the dates indicated below:
| As of December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||||||||
| Core deposit intangibles | $ | 209,393 | $ | (45,113) | $ | 164,280 | $ | 126,633 | $ | (15,337) | $ | 111,296 | |||||||||||||||||||||||
| Customer list intangible | 25,000 | (6,289) | 18,711 | 25,000 | (2,159) | 22,841 | |||||||||||||||||||||||||||||
| Trade name intangible | 1,200 | (409) | 791 | 1,200 | (136) | 1,064 | |||||||||||||||||||||||||||||
| Total | $ | 235,593 | $ | (51,811) | $ | 183,782 | $ | 152,833 | $ | (17,632) | $ | 135,201 | |||||||||||||||||||||||
The Company assesses goodwill for impairment at the reporting unit level on an annual basis or sooner if an event occurs or circumstances change which might indicate that the fair value of a reporting unit is below its carrying amount. The Company has identified and assigned goodwill to one reporting unit - the banking business unit.
In accordance with the accounting guidance codified in ASC 350-20, the Company performs a test of goodwill for impairment at least on an annual basis. An assessment is also required to be performed to the extent relevant events and/or circumstances occur which may indicate it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount.
The Company performed its annual assessment for the banking business as of November 30, 2025. The assessment included a comparison of the banking reporting unit’s carrying value of equity to estimated fair value of equity using the market capitalization method of the market approach. The Company evaluated conditions as of the assessment date and how a market participant would evaluate a control premium for the banking reporting unit. The implied control premium was estimated using the discounted cash flow method of the income approach by evaluating the present value of market participant cost savings and synergies. Based upon the assessment, it was determined there was no impairment of the Company’s goodwill as of November 30, 2025.
The amortization expense of the Company’s other intangible assets was $34.2 million, $14.6 million, and $1.8 million during the years ended December 31, 2025, 2024, and 2023, respectively. The increase in amortization expense for the year ended December 31, 2025 from 2024 was attributable to amortization expense recorded in the fourth quarter of 2025 related to other intangible assets acquired in connection with the Company’s merger with HarborOne and a full year of amortization expense recorded in the year ended December 31, 2025 related to other intangible assets acquired in connection with the Company’s merger with Cambridge compared to a partial year in the year ended December 31, 2024 (following the completion of the merger in the third quarter of 2024).
The weighted average original amortization period and weighted average remaining useful life of the Company’s other intangible assets is 7.5 years and 6.4 years, respectively. Management performs an assessment of the remaining useful lives of the Company’s intangible assets on a quarterly basis to determine if such lives remain appropriate.
The estimated amortization expense for the remaining useful life of the Company’s other intangible assets is as follows:
| Year | (In thousands) | ||||
| 2026 | $ | 46,614 | |||
| 2027 | 36,855 | ||||
| 2028 | 31,186 | ||||
| 2029 | 24,953 | ||||
| 2030 | 21,251 | ||||
| Thereafter | 22,923 | ||||
| Total amortization expense | $ | 183,782 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 29, 2021 | |
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.