STIFEL FINANCIAL CORP Goodwill & Intangibles Disclosure
NOTE 10 – Goodwill and Intangible Assets
The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):
|
|
December 31, |
|
|
Adjustments |
|
|
Write-off |
|
|
December 31, |
|
||||
Goodwill |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Global Wealth Management |
|
$ |
335,009 |
|
|
$ |
16,699 |
|
|
$ |
— |
|
|
$ |
351,708 |
|
Institutional Group |
|
|
1,060,209 |
|
|
|
51,941 |
|
|
|
— |
|
|
|
1,112,150 |
|
|
|
$ |
1,395,218 |
|
|
$ |
68,640 |
|
|
$ |
— |
|
|
$ |
1,463,858 |
|
|
|
December 31, |
|
|
Adjustments |
|
|
Amortization |
|
|
December 31, |
|
||||
Intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Global Wealth Management |
|
$ |
24,385 |
|
|
$ |
5,807 |
|
|
$ |
(3,905 |
) |
|
$ |
26,287 |
|
Institutional Group |
|
|
89,189 |
|
|
|
22,731 |
|
|
|
(30,162 |
) |
|
|
81,758 |
|
|
|
$ |
113,574 |
|
|
$ |
28,538 |
|
|
$ |
(34,067 |
) |
|
$ |
108,045 |
|
The adjustments to goodwill and intangible assets, included in our Institutional Group segment, during the year ended December 31, 2025, are primarily attributable to the acquisition of a portion of B. Riley on April 7, 2025, and the acquisition of Bryan Garnier on June 2, 2025.
The allocation of the purchase price of these acquisitions is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets as of the respective acquisition dates and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from that reflected herein as a result of future measurement period adjustments and the recording of identified intangible assets. See Note 3 in the notes to our consolidated financial statements for additional information regarding our acquisitions.
The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of each respective business, its employees, and customer base.
Amortizable intangible assets consist of acquired customer relationships, trade names, acquired technology, non-compete agreements, investment banking backlog, and core deposits that are amortized over their contractual or determined useful lives. Intangible assets as of December 31, 2025 and 2024, were as follows (in thousands):
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||||||||||
|
|
Gross |
|
|
Accumulated |
|
|
Gross |
|
|
Accumulated |
|
||||
Customer relationships |
|
$ |
215,249 |
|
|
$ |
128,575 |
|
|
$ |
208,601 |
|
|
$ |
115,919 |
|
Investment banking backlog |
|
|
30,413 |
|
|
|
21,221 |
|
|
|
8,913 |
|
|
|
7,327 |
|
Trade names |
|
|
28,796 |
|
|
|
23,267 |
|
|
|
29,109 |
|
|
|
22,210 |
|
Acquired technology |
|
|
19,903 |
|
|
|
15,141 |
|
|
|
19,903 |
|
|
|
9,158 |
|
Non-compete agreements |
|
|
10,929 |
|
|
|
9,041 |
|
|
|
10,152 |
|
|
|
8,559 |
|
Core deposits |
|
|
8,615 |
|
|
|
8,615 |
|
|
|
8,615 |
|
|
|
8,546 |
|
|
|
$ |
313,905 |
|
|
$ |
205,860 |
|
|
$ |
285,293 |
|
|
$ |
171,719 |
|
Amortization expense related to intangible assets was $34.1 million, $23.6 million, and $20.9 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is included in other operating expenses in the consolidated statements of operations.
The weighted-average remaining lives of the following intangible assets at December 31, 2025, are: customer relationships, 8.6 years; investment banking backlog, 0.3 years; trade names, 5.4 years; acquired technology, 8.1 years; and non-compete agreements, 3.0 years. We have an intangible asset that is not subject to amortization and is, therefore, not included in the table below. As of December 31, 2025, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal year |
|
|
|
|
2026 |
|
$ |
27,198 |
|
2027 |
|
|
14,479 |
|
2028 |
|
|
13,157 |
|
2029 |
|
|
12,383 |
|
2030 |
|
|
10,199 |
|
Thereafter |
|
|
28,511 |
|
|
|
$ |
105,927 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Mar 1, 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.