Goodwill and Intangible Assets
Goodwill
The Company’s goodwill balance was $75.7 million as of both December 31, 2025 and 2024. The Company did not record any goodwill impairment expense during the years ended December 31, 2025, 2024 and 2023. Goodwill is not amortized, but is subject to annual impairment tests that are performed in the fourth quarter of each calendar year. For additional detail, see “Note 1. Summary of Significant Accounting Policies.”
Intangible Assets
Intangible assets consist primarily of customer relationships. These intangible assets are amortized on an accelerated basis from ten to fourteen years.
Intangible assets, net of accumulated amortization, are included in “Other assets” on the Balance Sheet. The gross and net carrying values and accumulated amortization were as follows:
| | | | | | | | | | | |
| December 31, | 2025 | | 2024 |
| Gross carrying value | $ | 56,490 | | | $ | 54,500 | |
| Accumulated amortization | (49,071) | | | (45,914) | |
| Net carrying value | $ | 7,419 | | | $ | 8,586 | |
Amortization expense associated with intangible assets for the years ended December 31, 2025, 2024 and 2023 was $3.2 million, $3.5 million and $4.2 million, respectively. There was no impairment loss for the years ended December 31, 2025, 2024 and 2023.
The expected future amortization expense for intangible assets as of December 31, 2025, is as follows:
| | | | | |
| 2026 | $ | 2,636 | |
| 2027 | 1,943 | |
| 2028 | 1,179 | |
| 2029 | 729 | |
| 2030 | 456 | |
| Thereafter | 476 | |
| Total | $ | 7,419 | |
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.