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NOTE 10 | | Intangible Assets |
Intangible assets consisted of the following:
| | | | | | | | |
| At December 31 (Dollars in Millions) | 2025 | 2024 |
| Goodwill | $ | 12,635 | | $ | 12,536 | |
| Core deposit benefits | 1,319 | | 1,702 | |
| Mortgage servicing rights | 3,159 | | 3,369 | |
| Other identified intangibles | 426 | | 476 | |
| Total | $ | 17,539 | | $ | 18,083 | |
Aggregate amortization expense consisted of the following:
| | | | | | | | | | | |
| Year Ended December 31 (Dollars in Millions) | 2025 | 2024 | 2023 |
| Core deposit benefits | $ | 383 | | $ | 432 | | $ | 481 | |
| Other identified intangibles | 115 | | 137 | | 155 | |
| Total | $ | 498 | | $ | 569 | | $ | 636 | |
The estimated amortization expense for the next five years is as follows:
| | | | | |
| (Dollars in Millions) | |
| 2026 | $ | 435 | |
| 2027 | 366 | |
| 2028 | 302 | |
| 2029 | 235 | |
| 2030 | 172 | |
The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| (Dollars in Millions) | Wealth, Corporate, Commercial and Institutional Banking | Consumer and Business Banking | Payment Services | Treasury and Corporate Support | Consolidated Company |
| Balance at December 31, 2022 | $ | 4,589 | | $ | 4,465 | | $ | 3,319 | | $ | — | | $ | 12,373 | |
| Goodwill acquired | 235 | | (139) | | — | | — | | 96 | |
| Foreign exchange translation and other | 1 | | — | | 19 | | — | | 20 | |
| Balance at December 31, 2023 | $ | 4,825 | | $ | 4,326 | | $ | 3,338 | | $ | — | | $ | 12,489 | |
| Goodwill acquired | — | | — | | 80 | | — | | 80 | |
| Foreign exchange translation and other | (2) | | — | | (31) | | — | | (33) | |
| Balance at December 31, 2024 | $ | 4,823 | | $ | 4,326 | | $ | 3,387 | | $ | — | | $ | 12,536 | |
| Goodwill acquired | — | | — | | 46 | | — | | 46 | |
| Foreign exchange translation and other | 3 | | — | | 50 | | — | | 53 | |
| Balance at December 31, 2025 | $ | 4,826 | | $ | 4,326 | | $ | 3,483 | | $ | — | | $ | 12,635 | |
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.