GOODWILL AND OTHER INTANGIBLES
The following table presents goodwill as of the dates presented:
| | | | | | | | | | | |
| December 31, |
| (dollars in thousands) | 2025 | | 2024 |
| Balance at beginning of year | $ | 373,424 | | | $ | 373,424 | |
| Additions | — | | | — | |
| Balance at End of Year | $ | 373,424 | | | $ | 373,424 | |
Goodwill is reviewed for impairment annually or more frequently if it is determined that a triggering event has occurred. We performed a qualitative assessment for our annual impairment analysis as of October 1, 2025 and concluded that it is not more likely than not that fair value is less than carrying value. Based on this conclusion, a quantitative impairment test was not performed and we concluded that goodwill was not impaired. No events or circumstances since the October 1, 2025 annual impairment test were noted that would indicate goodwill was impaired at December 31, 2025.
The following table presents a summary of intangible assets as of the dates presented:
| | | | | | | | | | | |
| December 31, |
| (dollars in thousands) | 2025 | | 2024 |
| Gross carrying amount at beginning of year | $ | 31,340 | | | $ | 31,340 | |
| Additions | — | | | — | |
| Accumulated amortization | (29,089) | | | (28,285) | |
| Balance at End of Year | $ | 2,251 | | | $ | 3,055 | |
Intangible assets relate to core deposit and wealth management customer relationships resulting from acquisitions. We determined the amount of identifiable intangible assets for our core deposits based upon an independent valuation. Other intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. There were no triggering events requiring an impairment analysis to be completed in 2025.
Amortization expense on finite-lived intangible assets totaled $0.8 million, $1.0 million and $1.3 million for 2025, 2024 and 2023.
The following is a summary of the expected amortization expense for finite-lived intangible assets, assuming no new additions, for each of the five years following December 31, 2025 and thereafter:
| | | | | |
| (dollars in thousands) | Amount |
| 2026 | $ | 711 | |
| 2027 | 603 | |
| 2028 | 521 | |
| 2029 | 413 | |
| 2030 | 3 | |
| Thereafter | — | |
| Total | $ | 2,251 | |
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.