Pioneer Bancorp, Inc./MD Goodwill & Intangibles Disclosure
8. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in goodwill were as follows (dollars in thousands):
Balance, July 1, 2024 | 10,879 | ||
Acquired | — | ||
Balance, December 31, 2024 | 10,879 | ||
Acquired | 720 | ||
Impairment Charge | (2,000) | ||
Balance, December 31, 2025 | $ | 9,599 |
During the year ended December 31, 2025 a $2.0 million impairment charge was recognized for goodwill related to Pioneer Insurance Agency based on the annual impairment testing performed during the three months ended
December 31, 2025. The fair value of the reporting unit was estimated using the expected present value of future cash flows.
There were no impairment charges on goodwill or intangible assets for the six months ended December 31, 2024 and 2023 and for the fiscal years ended June 30, 2024.
Acquired other intangible assets were as follows (dollars in thousands):
| December 31, | |||||
2025 | 2024 | |||||
Customer relationship intangibles: |
| |
| | ||
Gross carrying amount | $ | 5,523 | $ | 5,042 | ||
Less: accumulated amortization |
| (2,899) |
| (2,455) | ||
Net carrying amount |
| 2,624 |
| 2,587 | ||
Weighted average remaining useful life (in years) | 3.98 | 4.02 | ||||
Core deposit intangibles: |
| |
| | ||
Gross carrying amount | 562 | 562 | ||||
Less: accumulated amortization |
| (475) |
| (444) | ||
Net carrying amount |
| 87 |
| 118 | ||
Weighted average remaining useful life (in years) | 2.06 | 2.39 | ||||
Total other intangible assets: |
| |
| | ||
Gross carrying amount | 6,085 | 5,604 | ||||
Less: accumulated amortization |
| (3,374) |
| (2,899) | ||
Net carrying amount | $ | 2,711 | $ | 2,705 | ||
Estimated amortization expense for the next five years is as follows (dollars in thousands):
Year ending December 31, | | | |
2026 | $ | 477 | |
2027 |
| 426 | |
2028 |
| 375 | |
2029 |
| 325 | |
2030 |
| 274 |
Aggregate amortization expense was $474,000 for the year ended December 31, 2025, $246,000 and $270,000 for the six months ended December 31, 2024 and 2023, respectively, and $534,000 for the fiscal year ended June 30, 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Sep 25, 2024 | |
| 2023 | Sep 26, 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.