PEOPLES FINANCIAL SERVICES CORP. Goodwill & Intangibles Disclosure
9. Goodwill and other intangibles:
The following table provides information on the significant components of goodwill and other acquired intangible assets at December 31, 2025, and December 31, 2024
December 31, 2025 | |||||||||||||||
Accumulated | |||||||||||||||
Beginning | Impairment | Accumulated | Ending | ||||||||||||
(Dollars in thousands) | | Balance | | Additions | | Charges | | Amortization(1) | | Balance | |||||
Goodwill | $ | 75,986 | $ | $ | $ | $ | 75,986 | ||||||||
Total goodwill | $ | 75,986 | $ | $ | $ | $ | 75,986 | ||||||||
Core deposit intangible | $ | 33,299 | $ | $ | $ | 6,327 | $ | 26,972 | |||||||
Wealth management customer list intangible | 898 | 170 | 728 | ||||||||||||
Total intangible assets, net | $ | 34,197 | $ | $ | $ | 6,497 | $ | 27,700 | |||||||
December 31, 2024 | |||||||||||||||
Accumulated | |||||||||||||||
Beginning | Impairment | Year-to-Date | Ending | ||||||||||||
(Dollars in thousands) | Balance | Additions | Charges | Amortization(1) | Balance | ||||||||||
Goodwill | $ | 63,370 | $ | 12,616 | $ | $ | $ | 75,986 | |||||||
Total goodwill | $ | 63,370 | $ | 12,616 | $ | $ | $ | 75,986 | |||||||
Core deposit intangible | $ | $ | 36,629 | $ | $ | 3,330 | $ | 33,299 | |||||||
Wealth management customer list intangible | 988 | 90 | 898 | ||||||||||||
Total intangible assets, net | $ | $ | 37,617 | $ | $ | 3,420 | $ | 34,197 | |||||||
| (1) | Core deposit intangible amortization is included in amortization of intangible assets in the consolidated statements of income and comprehensive income. Wealth management customer list intangible amortization is included in wealth management income on the consolidated statements of income and comprehensive income. |
The aggregate amortization expense was $6.5 million, $3.4 million and $0.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
At December 31, 2025, estimated future remaining amortization of the core deposit intangible and wealth management customer list intangible within the years ending December 31, are as follows:
(Dollars in thousands) | | Core Deposit Intangible | Wealth Management Customer List Intangible | Total | |||||
2026 | $ | 5,661 | $ | 153 | $ | 5,814 | |||
2027 |
| 4,995 | 135 |
| 5,130 | ||||
2028 |
| 4,329 |
| 117 |
| 4,446 | |||
2029 |
| 3,663 |
| 99 |
| 3,762 | |||
2030 | 2,997 | 81 | 3,078 | ||||||
Thereafter |
| 5,327 |
| 143 |
| 5,470 | |||
Total amortizing intangible | $ | 26,972 | $ | 728 | $ | 27,700 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 11, 2016 | |
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.