GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill is tested annually, or more often than annually if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Goodwill totaled $1.32 billion at December 31, 2025 and 2024. Goodwill impairment was neither indicated nor recorded in 2025, 2024 or 2023.
Core deposit premiums represent the value of the relationships that acquired banks had with their deposit customers and are amortized over periods ranging from 10 years to 15 years and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Other intangible assets represent the value of other acquired relationships, including relationships with trust and wealth management customers, and are being amortized over various periods ranging from 8 years to 15 years.
Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | |
| (In thousands) | 2025 | | 2024 |
| Core deposit premiums: | | | |
| Balance, beginning of year | $ | 87,575 | | | $ | 101,344 | |
| Amortization | (11,185) | | | (13,769) | |
| Balance, end of year | 76,390 | | | 87,575 | |
| Books of business and other intangibles: | | | |
| Balance, beginning of year | 9,667 | | | 11,301 | |
| Amortization | (1,634) | | | (1,634) | |
| Balance, end of year | 8,033 | | | 9,667 | |
| Total other intangible assets, net | $ | 84,423 | | | $ | 97,242 | |
The carrying basis and accumulated amortization of the Company’s other intangible assets at December 31, 2025 and 2024 were as follows:
| | | | | | | | | | | |
| (In thousands) | 2025 | | 2024 |
| Core deposit premiums: | | | |
| Gross carrying amount | $ | 173,305 | | | $ | 177,624 | |
| Accumulated amortization | (96,915) | | | (90,049) | |
| Core deposit premiums, net | 76,390 | | | 87,575 | |
| Books of business and other intangibles: | | | |
| Gross carrying amount | 22,068 | | | 22,068 | |
| Accumulated amortization | (14,035) | | | (12,401) | |
| Books of business and other intangibles, net | 8,033 | | | 9,667 | |
| Total other intangible assets, net | $ | 84,423 | | | $ | 97,242 | |
Core deposit premium amortization expense recorded for the years ended December 31, 2025, 2024 and 2023 was $11.2 million, $13.8 million and $14.7 million, respectively. Amortization expense recorded for books of business and other intangibles was $1.6 million for each year ended December 31, 2025, 2024 and 2023.
The Company’s estimated remaining amortization expense on other intangible assets as of December 31, 2025 is as follows:
| | | | | |
| Year | (In thousands) |
| 2026 | $ | 12,346 | |
| 2027 | 12,218 | |
| 2028 | 11,312 | |
| 2029 | 8,563 | |
| 2030 | 8,160 | |
| Thereafter | 31,824 | |
| Total | $ | 84,423 | |
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.