MID PENN BANCORP INCMPB
MID PENN BANCORP INC Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
The following table summarizes the changes in goodwill:
| For the Year Ended December 31, | |||||||||||
(In thousands) | 2025 | 2024 | |||||||||
| Goodwill balance, beginning of year | $ | 128,160 | $ | 127,031 | |||||||
| Commonwealth Benefits Group acquisition | — | 1,129 | |||||||||
| William Penn Acquisition | 6,857 | — | |||||||||
| Charis Insurance acquisition | 1,603 | — | |||||||||
| Goodwill balance, end of year | $ | 136,620 | $ | 128,160 | |||||||
On May 12, 2025, Mid Penn acquired the insurance business and related accounts of Charis Insurance Group, Inc., which provides business home and auto insurance throughout central and southern Pennsylvania. Goodwill totaling $1.6 million was booked as a result of the business combination.
On April 30, 2025, Mid Penn completed the acquisition of William Penn which further expands Mid Penn's presence in the Philadelphia region and surrounding counties in Pennsylvania and New Jersey. Goodwill totaling $6.9 million was booked as a result of the business combination.
On July 31, 2024, Mid Penn acquired the insurance business and related accounts of a full-service employee benefits firm that serves mid to large employers across central and eastern Pennsylvania, northern Maryland, and northern Virginia. Goodwill totaling $1.1 million was booked as a result of this business combination.
The following table presents the gross carrying amount and accumulated amortization of core deposit and other intangibles as of December 31:
| (In thousands) | 2025 | 2024 | |||||||||
| Gross carrying amount of core deposit and other intangibles | $ | 17,703 | $ | 8,026 | |||||||
| Less: accumulated amortization | (3,046) | (1,784) | |||||||||
| Core deposit and other intangibles, net | $ | 14,657 | $ | 6,242 | |||||||
The following table summarizes the changes in core deposit intangible:
| For the Year Ended December 31, | |||||||||||||||||
(In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Core deposit intangible balance, beginning of year | $ | 3,382 | $ | 4,649 | $ | 4,964 | |||||||||||
| Brunswick core deposit intangibles | — | — | 999 | ||||||||||||||
| William Penn core deposit intangibles | 9,002 | — | — | ||||||||||||||
| Less: Amortization of core deposit intangibles | (2,126) | (1,267) | (1,314) | ||||||||||||||
| Core deposit intangible balances, end of year | $ | 10,258 | $ | 3,382 | $ | 4,649 | |||||||||||
Core deposit intangibles are amortized using the sum-of-the-years'-digits method over estimated useful lives not to exceed ten years.
The following table shows the amortization expense for future periods:
| (In thousands) | |||||
| 2026 | $ | 2,340 | |||
| 2027 | 1,955 | ||||
| 2028 | 1,570 | ||||
| 2029 | 1,297 | ||||
| 2030 | 1,053 | ||||
| Thereafter | 2,043 | ||||
| Total | $ | 10,258 | |||
Customer List Intangible
As a result of the Commonwealth Benefits Group and Charis Insurance Group acquisitions, Mid Penn recorded a customer list intangible asset included in total intangible assets related to the insurance and wealth management customers assumed in the acquisitions. This intangible is amortized over ten years using the sum-of-the-years’-digits amortization method.
The following table summarizes the changes in the customer list intangible during the years ended December 31:
| For the Year Ended December 31, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Customer list intangible balance, beginning of year | $ | 2,799 | $ | 1,830 | $ | 2,275 | |||||||||||
| Commonwealth Benefits Group acquisition | — | 1,481 | — | ||||||||||||||
| Charis Insurance acquisition | 2,199 | — | — | ||||||||||||||
| Less: Amortization of customer list intangible | (841) | (512) | (445) | ||||||||||||||
| Customer list intangible, end of year | $ | 4,157 | $ | 2,799 | $ | 1,830 | |||||||||||
The following table shows the amortization expense for future periods:
| (In thousands) | |||||
| 2026 | $ | 909 | |||
| 2027 | 793 | ||||
| 2028 | 677 | ||||
| 2029 | 561 | ||||
| 2030 | 445 | ||||
| Thereafter | 772 | ||||
| Total | $ | 4,157 | |||
Noncompete Intangible
As a result of the Commonwealth Benefits Group and Charis Insurance Group acquisitions, Mid Penn recorded a noncompete intangible asset included in total intangible assets related to the insurance and wealth management customers assumed in the acquisitions. This intangible is amortized over five years using the sum-of-the-years’-digits amortization method.
The following table summarizes the changes in the noncompete intangible during the years ended December 31:
| For the Year Ended December 31, | |||||||||||||||||
(In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Noncompete intangible balance, beginning of year | $ | 61 | $ | — | $ | — | |||||||||||
| Commonwealth Benefits Group acquisition | — | 67 | — | ||||||||||||||
| Charis Insurance acquisition | 191 | — | — | ||||||||||||||
| Less: Amortization of noncompete intangible | (51) | (6) | — | ||||||||||||||
| Noncompete intangible, end of year | $ | 201 | $ | 61 | $ | — | |||||||||||
The following table shows the amortization expense for future periods:
| (In thousands) | |||||
| 2026 | $ | 77 | |||
| 2027 | 77 | ||||
| 2028 | 40 | ||||
| 2029 | 7 | ||||
| Total | $ | 201 | |||
The Corporation performed its annual goodwill impairment assessment as of October 31, 2025, and determined that no impairment existed. No goodwill impairment charges were recorded during the years ended December 31, 2025 or 2024.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 16, 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.