FIRST FINANCIAL CORP /IN/ Goodwill & Intangibles Disclosure
9.GOODWILL AND INTANGIBLE ASSETS:
The Corporation completed its annual impairment testing of goodwill during the fourth quarter of 2025 and 2024. Management does not believe any amount of goodwill is impaired.
Goodwill was as follows at year-end:
| 2025 | | 2024 | | 2023 | ||||
Beginning of year | $ | 100,026 | $ | 86,985 | $ | 86,985 | |||
Acquired goodwill |
| — |
| 13,041 |
| — | |||
Measurement period adjustments | (1,797) | — | — | ||||||
Impairment |
| — |
| — |
| — | |||
End of year | $ | 98,229 | $ | 100,026 | $ | 86,985 | |||
Goodwill related to the acquisition of SimplyBank was decreased by $1.8 million in 2025 due to adjustments to income tax assets related to the filing of the final SimplyBank tax return.
Intangible assets subject to amortization at December 31, 2025 and 2024 are as follows:
| 2025 | | 2024 | |||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||
(Dollar amounts in thousands) | Amount | Amortization | Amount | Amortization | ||||||||
Core deposit intangible | $ | 41,646 | $ | 25,412 | $ | 21,858 | $ | 17,159 | ||||
Acquired core deposit intangible |
| — | — |
| 19,788 |
| 2,942 | |||||
$ | 41,646 | $ | 25,412 | $ | 41,646 | $ | 20,101 | |||||
Aggregate amortization expense was $5.3 million, $3.8 million and $1.1 million for 2025, 2024 and 2023, respectively.
Estimated amortization expense for the next five years is as follows:
| In thousands | ||
2026 | $ | 4,015 | |
2027 |
| 2,995 | |
2028 |
| 2,888 | |
2029 |
| 2,471 | |
2030 |
| 1,046 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 11, 2024 | |
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.