UMB FINANCIAL CORP Goodwill & Intangibles Disclosure
7. GOODWILL AND OTHER INTANGIBLES
Changes in the carrying amount of goodwill for the years ended December 31, 2025 and December 31, 2024 by operating segment are as follows (in thousands):
|
|
Commercial Banking |
|
|
Institutional Banking |
|
|
Personal Banking |
|
|
Total |
|
||||
Balances as of January 1, 2025 |
|
$ |
63,113 |
|
|
$ |
76,492 |
|
|
$ |
67,780 |
|
|
$ |
207,385 |
|
Acquisition of HTLF |
|
|
979,464 |
|
|
|
— |
|
|
|
652,976 |
|
|
|
1,632,440 |
|
Balances as of December 31, 2025 |
|
$ |
1,042,577 |
|
|
$ |
76,492 |
|
|
$ |
720,756 |
|
|
$ |
1,839,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balances as of January 1, 2024 |
|
$ |
63,113 |
|
|
$ |
76,492 |
|
|
$ |
67,780 |
|
|
$ |
207,385 |
|
Balances as of December 31, 2024 |
|
$ |
63,113 |
|
|
$ |
76,492 |
|
|
$ |
67,780 |
|
|
$ |
207,385 |
|
Following are the intangible assets that continue to be subject to amortization as of December 31, 2025 and 2024 (in thousands):
|
As of December 31, 2025 |
|
|||||||||
|
Core Deposit Intangible Assets |
|
|
Customer Relationships |
|
|
Total |
|
|||
Gross carrying amount |
$ |
481,294 |
|
|
$ |
124,085 |
|
|
$ |
605,379 |
|
Accumulated amortization |
|
81,203 |
|
|
|
37,307 |
|
|
|
118,510 |
|
Net carrying amount |
$ |
400,091 |
|
|
$ |
86,778 |
|
|
$ |
486,869 |
|
|
As of December 31, 2024 |
|
|||||||||
|
Core Deposit Intangible Assets |
|
|
Customer Relationships |
|
|
Total |
|
|||
Gross carrying amount |
$ |
2,345 |
|
|
$ |
86,800 |
|
|
$ |
89,145 |
|
Accumulated amortization |
|
1,600 |
|
|
|
23,898 |
|
|
|
25,498 |
|
Net carrying amount |
$ |
745 |
|
|
$ |
62,902 |
|
|
$ |
63,647 |
|
Related to the acquisition of HTLF, the Company recognized $1.6 billion of goodwill, a $474.1 million core deposit intangible asset, wealth customer list of $26.0 million, and purchased credit card relationships of $10.9 million. See Note 20, “Acquisition” for additional information.
On September 2, 2025, the Company acquired a healthcare savings account business, which included $32.5 million of deposits. The purchase resulted in recognition of a $4.8 million core deposit intangible asset.
The weighted average life of core deposit intangible assets and customer relationships acquired during the year ended December 31, 2025 was 10.0 years and 5.8 years, respectively. The weighted average life of all intangible assets acquired during the year ended December 31, 2025 was 9.7 years.
Amortization expense for the years ended December 31, 2025, 2024, and 2023 was $93.5 million, $7.7 million, and $8.6 million, respectively.
The following table discloses the estimated amortization expense of intangible assets in future years (in thousands):
For the year ending December 31, 2026 |
|
$ |
93,120 |
|
For the year ending December 31, 2027 |
|
|
82,528 |
|
For the year ending December 31, 2028 |
|
|
70,461 |
|
For the year ending December 31, 2029 |
|
|
61,515 |
|
For the year ending December 31, 2030 |
|
|
52,901 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
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.