Goodwill
The carrying amount of goodwill was $155.2 million as of December 31, 2024 and December 31, 2023, respectively. There were no changes in the carrying amount of goodwill for the year ended December 31, 2024 and 2023. Goodwill is assessed for impairment annually, or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.
No goodwill impairment charges were recorded for the year ended December 31, 2024 and 2023. As of December 31, 2024, Horizon elected to perform a qualitative assessment to determine if it was more likely than not that the fair value exceeded its carrying value. The qualitative assessment indicated that it was more likely than not that the fair value exceeded its carrying value, resulting in no impairment.
As a result of acquisitions, the Company has recorded certain amortizable intangible assets related to core deposit intangibles. These core deposit intangibles are being amortized over 7 years to 10 years using an accelerated method and had a weighted average remaining life of 4.14 years and 4.96 years as of December 31, 2024 and December 31, 2023. Amortizable intangible assets are summarized as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2024 | | December 31, 2023 |
| Gross Carrying
Amount | | Accumulated
Amortization | | Gross Carrying
Amount | | Accumulated
Amortization |
| Amortizable intangible assets | | | | | | | |
| Core deposit intangible | $ | 33,633 | | | $ | (23,410) | | | $ | 35,190 | | | $ | (21,564) | |
Amortization expense for intangible assets totaled $3.4 million, $3.6 million and $3.7 million for the years ended December 31, 2024, 2023 and 2022. Estimated amortization for the years ending December 31 is as follows:
| | | | | |
| Year | Amount |
| 2025 | $ | 3,044 | |
| 2026 | 2,566 | |
| 2027 | 2,119 | |
| 2028 | 1,754 | |
| 2029 | 512 | |
| Thereafter | 228 | |
| $ | 10,223 | |
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.