Goodwill and Other Intangible Assets
The following table shows the activity in goodwill and other intangible assets for the years ended December 31, 2025, 2024 and 2023.
| | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | Goodwill | | Other
Intangible Assets | | Total |
| January 1, 2023 | | $ | 159,595 | | | $ | 5,975 | | | $ | 165,570 | |
| Amortization | | — | | | 1,323 | | | 1,323 | |
| December 31, 2023 | | $ | 159,595 | | | $ | 4,652 | | | $ | 164,247 | |
| Amortization | | — | | | 1,215 | | | 1,215 | |
| December 31, 2024 | | $ | 159,595 | | | $ | 3,437 | | | $ | 163,032 | |
| Amortization | | — | | | 1,042 | | | 1,042 | |
| December 31, 2025 | | $ | 159,595 | | | $ | 2,395 | | | $ | 161,990 | |
Goodwill
Goodwill impairment exists when a reporting unit's carrying value exceeds its fair value. Park evaluates goodwill for impairment on April 1 of each year, with financial data as of March 31. At April 1, 2025, the Company's reporting unit, PNB, 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.
Acquired Intangible Assets
The following table shows the balance of acquired intangible assets as of December 31, 2025 and 2024.
| | | | | | | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 |
| (In thousands) | Gross Carrying Amount | | Accumulated Amortization | | Gross Carrying Amount | | Accumulated Amortization |
| Other intangible assets: | | | | | | | |
| Core deposit intangibles | $ | 14,456 | | | $ | 12,061 | | | $ | 14,456 | | | $ | 11,019 | |
Core deposit intangibles are being amortized, on an accelerated basis, over a period of ten years. Amortization expense for the core deposit intangibles was $1.0 million, $1.2 million and $1.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following is a schedule of estimated core deposit intangibles amortization expense for each of the next five years:
| | | | | | | | |
| (In thousands) | | Total |
| 2026 | | $ | 887 | |
| 2027 | | 754 | |
| 2028 | | 618 | |
| 2029 | | 136 | |
| 2030 | | — | |
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.