Goodwill and Core Deposit Intangible
Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposit intangible at December 31, 2025 and 2024, were as follows:
| | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Goodwill | | (In thousands) |
| Balance, beginning of period | | $ | 1,398,253 | | | $ | 1,398,253 | |
| | | | |
| Balance, end of period | | $ | 1,398,253 | | | $ | 1,398,253 | |
| | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Core Deposit Intangible | | (In thousands) |
| Balance, beginning of period | | $ | 40,327 | | | $ | 48,770 | |
| | | | |
| Amortization expense | | (8,034) | | | (8,443) | |
| Balance, end of year | | $ | 32,293 | | | $ | 40,327 | |
The carrying basis and accumulated amortization of core deposits intangibles at December 31, 2025 and 2024 were:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| (In thousands) |
| Gross carrying amount | $ | 128,888 | | | $ | 128,888 | |
| Accumulated amortization | (96,595) | | | (88,561) | |
| Net carrying amount | $ | 32,293 | | | $ | 40,327 | |
Core deposit intangible amortization expense for the years ended December 31, 2025, 2024 and 2023 was approximately $8.0 million, $8.4 million and $9.7 million, respectively. The core deposit intangible is tested annually for impairment during the fourth quarter. During the 2025 review, no impairment was found. Including all of the mergers completed as of December 31, 2025, HBI’s estimated amortization expense of the core deposit intangible for each of the years 2026 through 2030 is approximately: 2026 – $7.8 million; 2027 – $6.6 million; 2028 – $4.2 million; 2029 – $4.2 million and 2030 – $4.2 million.
The carrying amount of the Company’s goodwill was $1.40 billion at both December 31, 2025 and 2024. Goodwill is tested annually for impairment during the fourth quarter or more frequently if changes or circumstances occur. During the 2024 and 2023 reviews, no impairment was found. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.
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.