REPUBLIC BANCORP INC /KY/ Goodwill & Intangibles Disclosure
7.GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS
A progression of the balance for goodwill follows:
Years Ended December 31, (in thousands) | | 2025 | | 2024 |
| 2023 | |||
Beginning of period | $ | 40,516 | $ | 40,516 | $ | 16,300 | |||
Acquired goodwill |
| — |
| — |
| 24,216 | |||
Impairment |
| — |
| — |
| — | |||
End of period | $ | 40,516 | $ | 40,516 | $ | 40,516 | |||
The goodwill balance relates entirely to the Company’s Traditional Banking segment and Core Banking operations.
At December 31, 2025, and December 31, 2024, the Company had $41 million in goodwill recorded on its balance sheet. Goodwill of $24 million was attributed to the 2023 CBank acquisition, while goodwill totaling $6 million and $10 million were attributed to the acquisitions of Cornerstone Community Bank and GulfStream Community Bank in 2016 and 2006.
Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. As of December 31, 2025 and 2024, the Company’s Core Banking reporting unit 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 not more-likely-than-not that the carrying value of the reporting unit exceeded its fair value.
The Company recorded a $3 million CDI asset in association with its 2023 CBank acquisition. The gross carrying amount and life-to-date accumulated amortization of the CDI asset follow:
(dollars in thousands) | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | |||
December 31, 2025 | $ | 2,844 | $ | (1,309) | $ | 1,535 | |||
December 31, 2024 | $ | 2,844 | $ | (887) | $ | 1,957 | |||
Changes in the net carrying amount of the CDI asset follow:
Years Ended December 31, (in thousands) | | 2025 | | 2024 | ||
Beginning of period | $ | 1,957 | $ | 2,439 | ||
Added from acquisition |
| — |
| — | ||
Amortized to expense |
| (422) |
| (482) | ||
End of period | $ | 1,535 | $ | 1,957 | ||
Aggregate CDI amortization expense follows:
Years Ended December 31, (in thousands) | | 2025 | | 2024 | | 2023 | |||
Core deposit amortization expense | $ | 422 | $ | 482 | $ | 405 | |||
Future CDI amortization expense is estimated as follows:
Years (dollars in thousands) | | CDI | |
2026 |
| 371 | |
2027 | 320 | ||
2028 | 269 | ||
2029 | 217 | ||
2030 | 166 | ||
2031 | 115 | ||
2032 | 77 | ||
Total future amortization expense | $ | 1,535 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 10, 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.