GOODWILL AND INTANGIBLE ASSETS
The following table presents a summary of goodwill:
| | | | | | | | | | | |
| ($ in thousands) | Years ended December 31, |
| 2025 | | 2024 |
| Goodwill, beginning of year | $ | 365,164 | | | $ | 365,164 | |
| Additions from acquisition | 51,804 | | | — | |
| Goodwill, end of year | $ | 416,968 | | | $ | 365,164 | |
| | | |
The following table presents a summary of other intangible assets:
| | | | | | | | | | | |
| ($ in thousands) | Years ended December 31, |
| 2025 | | 2024 |
| Other intangible assets, net, beginning of year | $ | 8,484 | | | $ | 12,318 | |
| Additions from acquisition | 16,414 | | | — | |
| Amortization | (3,724) | | | (3,834) | |
| Other intangible assets, net, end of year | $ | 21,174 | | | $ | 8,484 | |
| | | |
At December 31, 2025, other intangible assets consist of $20.7 million in core deposit intangibles and $0.5 million in client-related wealth intangibles. Amortization expense on other intangible assets was $3.7 million, $3.8 million, and $4.6 million for the years ended December 31, 2025, 2024, and 2023, respectively. The other intangible assets are being amortized over a 10-year period.
The following table summarizes the amortization schedule for other intangible assets at December 31, 2025:
| | | | | |
| ($ in thousands) | |
| Year | Amount |
| 2026 | $ | 5,180 | |
| 2027 | 4,125 | |
| 2028 | 3,254 | |
| 2029 | 2,407 | |
| 2030 | 1,902 | |
| After 2030 | 4,306 | |
| Total | $ | 21,174 | |
| |
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.