GOODWILL AND OTHER INTANGIBLES
The Corporation’s goodwill was $712.0 million for the years ended December 31, 2025 and 2024.
During the fourth quarter of 2025 and 2024, the Corporation performed its annual goodwill impairment testing and the fair value exceeded the Corporation’s carrying value. Based on the analysis performed, the Corporation concluded goodwill was not impaired as of December 31, 2025 and 2024. For additional details related to impairment testing, see the “GOODWILL” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.
The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below.
| | | | | | | | | | | |
| 2025 | | 2024 |
| Gross carrying amount | $ | 123,285 | | | $ | 123,285 | |
| | | |
| | | |
| | | |
| Accumulated amortization | (109,485) | | | (103,457) | |
| | | |
| Total core deposit and other intangibles | $ | 13,800 | | | $ | 19,828 | |
The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two to ten years. Amortization expense for the years ended December 31, 2025, 2024 and 2023, was $6.0 million, $7.3 million and $8.7 million, respectively.
Estimated future amortization expense is summarized as follows:
| | | | | |
| Amortization Expense |
| 2026 | $ | 4,910 | |
| 2027 | 3,603 | |
| 2028 | 2,852 | |
| 2029 | 1,137 | |
| 2030 | 806 | |
| After 2030 | 492 | |
| | $ | 13,800 | |
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.