UNIVEST FINANCIAL CorpUVSP
UNIVEST FINANCIAL Corp Goodwill & Intangibles Disclosure
Goodwill and Other Intangible Assets
The Corporation has goodwill from acquisitions which is deemed to be an indefinite intangible asset and is not amortized. In accordance with ASC Topic 350, goodwill is tested at least annually for impairment at the reporting unit level. The Corporation performs an annual test of goodwill for impairment during the fourth quarter of each year. The Corporation concluded there was no impairment of goodwill during 2023 through 2025.
Changes in the carrying amount of the Corporation's goodwill by business segment for the years ended December 31, 2025 and 2024 were as follows:
| (Dollars in thousands) | Banking | Wealth Management | Insurance | Consolidated | |||||||||||||||||||
| Balance at December 31, 2023 | $ | 138,476 | $ | 15,434 | $ | 21,600 | $ | 175,510 | |||||||||||||||
| Addition to goodwill from acquisitions | — | — | — | — | |||||||||||||||||||
| Balance at December 31, 2024 | 138,476 | 15,434 | 21,600 | 175,510 | |||||||||||||||||||
| Addition to goodwill from acquisitions | — | — | — | — | |||||||||||||||||||
| Balance at December 31, 2025 | $ | 138,476 | $ | 15,434 | $ | 21,600 | $ | 175,510 | |||||||||||||||
The Corporation also has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The Corporation also performs an annual test of core deposit and customer-related intangibles for impairment during the fourth quarter of each year. The Corporation concluded there was no impairment of core deposit and customer-related intangibles during 2023 through 2025.
The amortization of core deposit and customer-related intangibles for the years ended December 31, 2025, 2024 and 2023 was $469 thousand, $648 thousand and $845 thousand, respectively.
The following table reflects the components of intangible assets at the dates indicated:
| At December 31, 2025 | At December 31, 2024 | ||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization (1) | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization (1) | Net Carrying Amount | |||||||||||||||||||||||||||||
| Amortized intangible assets: | |||||||||||||||||||||||||||||||||||
| Core deposit intangibles | $ | 5,268 | $ | 5,220 | $ | 48 | $ | 6,788 | $ | 6,597 | $ | 191 | |||||||||||||||||||||||
| Customer-related intangibles | 2,476 | 1,674 | 802 | 2,476 | 1,348 | 1,128 | |||||||||||||||||||||||||||||
| Servicing rights | 12,985 | 6,507 | 6,478 | 12,274 | 5,284 | 6,990 | |||||||||||||||||||||||||||||
| Total amortized intangible assets | $ | 20,729 | $ | 13,401 | $ | 7,328 | $ | 21,538 | $ | 13,229 | $ | 8,309 | |||||||||||||||||||||||
(1) Included within accumulated amortization is a valuation allowance of $307 thousand and $7 thousand on servicing rights at December 31, 2025 and 2024, respectively.
The estimated aggregate amortization expense for core deposit and customer-related intangibles for each of the five succeeding fiscal years and thereafter follows:
| Year | (Dollars in thousands) | Amount | ||||||
| 2026 | $ | 318 | ||||||
| 2027 | 216 | |||||||
| 2028 | 161 | |||||||
| 2029 | 105 | |||||||
| 2030 | 50 | |||||||
| Total | $ | 850 | ||||||
The aggregate fair value of servicing rights was $10.3 million and $12.7 million at December 31, 2025 and 2024, respectively. The fair value of these rights was determined using a discount rate of 11.3% at December 31, 2025 and 11.0% at December 31, 2024.
Changes in the servicing rights balance are summarized as follows:
| For the Years Ended December 31, | |||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Beginning of period | $ | 6,990 | $ | 8,982 | $ | 8,572 | |||||||||||
| Servicing rights capitalized | 1,613 | 2,724 | 1,946 | ||||||||||||||
| Amortization of servicing rights | (1,825) | (1,341) | (1,443) | ||||||||||||||
| Sold servicing rights | — | (3,466) | — | ||||||||||||||
| Changes in valuation allowance | (300) | 91 | (93) | ||||||||||||||
| End of period | $ | 6,478 | $ | 6,990 | $ | 8,982 | |||||||||||
| Loans serviced for others | $ | 1,069,216 | $ | 1,032,011 | $ | 1,630,032 | |||||||||||
The change in loans serviced for others from December 31, 2023 to December 31, 2024 was primarily related to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024.
Activity in the valuation allowance for servicing rights are summarized as follows:
| For the Years Ended December 31, | |||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Valuation allowance, beginning of period | $ | (7) | $ | (98) | $ | (5) | |||||||||||
| Additions | (300) | — | (93) | ||||||||||||||
| Reductions | — | 91 | — | ||||||||||||||
| Valuation allowance, end of period | $ | (307) | $ | (7) | $ | (98) | |||||||||||
The estimated amortization expense of servicing rights for each of the five succeeding fiscal years and thereafter is as follows:
| Year | (Dollars in thousand) | Amount | ||||||
| 2026 | $ | 1,367 | ||||||
| 2027 | 1,065 | |||||||
| 2028 | 842 | |||||||
| 2029 | 675 | |||||||
| 2030 | 544 | |||||||
| Thereafter | 1,985 | |||||||
| Total | $ | 6,478 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 2016 | |
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.