LINKBANCORP, Inc. Goodwill & Intangibles Disclosure
7. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The change in goodwill during the years ended December 31, 2025 and 2024 is as follows:
|
|
2025 |
|
|
2024 |
|
||
Beginning of year |
|
$ |
58,806 |
|
|
$ |
56,968 |
|
Acquired Goodwill |
|
|
— |
|
|
|
— |
|
Measurement period adjustment |
|
|
— |
|
|
|
1,838 |
|
Impairment |
|
|
— |
|
|
|
— |
|
End of year |
|
$ |
58,806 |
|
|
$ |
58,806 |
|
Impairment exists when a reporting unit's carrying value of goodwill exceeds its fair value. At December 31, 2025, the Company's reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment of goodwill.
Acquired Intangible Assets
Acquired intangible assets were as follows at year-end:
|
2025 |
|
|
2024 |
|
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|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
||||
Amortized intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
||||
Core deposit intangibles |
$ |
25,612 |
|
|
$ |
10,291 |
|
|
$ |
26,910 |
|
|
$ |
6,061 |
|
Trade name intangibles |
|
348 |
|
|
|
303 |
|
|
|
348 |
|
|
|
242 |
|
Total |
$ |
25,960 |
|
|
$ |
10,594 |
|
|
$ |
27,258 |
|
|
$ |
6,303 |
|
Aggregate amortization expense for the years ended December 31, 2025 and 2024 was $4,291 and $4,778, respectively.
In connection with the New Jersey Branch Sale, core deposit intangibles of $1,298 were written off and included within the gain on sale within the Consolidated Statements of Operations.
Expected aggregate annual amortization expense for the next five years assuming no new acquisitions or impairments is as follows:
(In Thousands) |
|
|
|
2026 |
$ |
3,796 |
|
2027 |
|
3,271 |
|
2028 |
|
2,791 |
|
2029 |
|
2,312 |
|
2030 |
|
1,833 |
|
2031 and thereafter |
|
1,363 |
|
|
$ |
15,366 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 30, 2023 | |
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.