GOODWILL AND OTHER INTANGIBLES

Goodwill represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of fair value

of liabilities assumed. At December 31, 2025 and 2024, the Company had goodwill of $843.3 million from acquisitions

prior to the merger with HomeStreet, Inc. As discussed in Note 2, “Business Combination,” a bargain purchase gain was

recorded as a result of the Merger, therefore, no goodwill was recognized. The Company performed a qualitative

impairment test as of November 30, 2025 and determined goodwill to have no impairment.

Core deposit intangibles assets of $90.8 million were recognized as a result of the Merger. Core deposit intangible assets

values were determined by an analysis of the cost differential between the core deposits inclusive of estimated servicing

costs and alternative funding sources for core deposits acquired through business combinations. The core deposit intangible

assets recorded are amortized on an accelerated basis over a period of 8 years, and the weighted average remaining

amortization period for core deposit intangibles was approximately 8 years as of December 31, 2025. The Company

evaluated the percentage change in core deposits from the respective acquisition date to December 31, 2025, versus the life

to date amortization percentage of the core deposit intangible related to those core deposits. No impairment was recognized

on core deposit intangibles for 2025 and 2024.

Other intangibles acquired of $100.2 million related to a DUS license and business line was recognized related to the

Merger. On December 3, 2025, the Company entered into an agreement to sell the DUS business line. See Note 1,

“Summary of Significant Accounting Policies,” and Note 2, “Business Combination” for further details on the agreement

and the valuation of the DUS license and business line.

Trade name intangibles and DUS license and business line intangibles have an indefinite life and are not amortized. No

impairment was recognized on the trade name intangible for 2025 and 2024 or the DUS license and business line intangible

for 2025.

The following table presents a summary of other intangible assets as of the periods indicated:


(in thousands)	Gross Carrying Value	Accumulated Amortization	Accumulated Impairment	Net Carrying Value
December 31, 2025
Core deposit intangibles	$254,302	$156,706	$861	$96,735
Trade name intangibles	17,060	—	1,460	15,600
Client relationship intangible	2,798	2,798	—	—
DUS license and business line intangible	100,156	—	—	100,156
Total	$374,316	$159,504	$2,321	$212,491

December 31, 2024
Core deposit intangibles	$163,545	$139,540	$861	$23,144
Trade name intangibles	17,060	—	1,460	15,600
Client relationship intangible	2,798	2,798	—	—
Other intangibles	2,580	2,580	—	—
Total	$185,983	$144,918	$2,321	$38,744

Amortization of intangible assets was $17.1 million and $13.4 million for 2025 and 2024, respectively. The following table

presents estimated future amortization expense as of December 31, 2025:


(in thousands)		December 31, 2025
Period ending December 31,

2026		$27,950
2027		22,173
2028		16,397
2029		11,558
2030		8,461
Thereafter		10,196
Total future amortization expense		$96,735

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.

Mechanics Bancorp Goodwill & Intangibles Disclosure

About Goodwill & Intangibles Disclosures

Other Available Disclosures