WESTAMERICA BANCORPORATION Goodwill & Intangibles Disclosure
Note 6: Goodwill and Identifiable Intangible Assets
The Company has recorded goodwill and other identifiable intangibles associated with purchase business combinations. Goodwill is not amortized, but is evaluated for impairment at least annually. The Company did not recognize impairment during the year ended December 31, 2025 and December 31, 2024, as triggering events occurred during such periods. Identifiable intangibles are amortized to their estimated residual values over their expected useful lives. Such lives and residual values are also periodically reassessed to determine if any amortization period adjustments are indicated. During the year ended December 31, 2025 and December 31, 2024, such adjustments were recorded.
The carrying values of goodwill were:
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At December 31, 2025 |
At December 31, 2024 |
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(In thousands) |
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Goodwill |
$ | 121,673 | $ | 121,673 | ||||
The gross carrying amount of identifiable intangible assets and accumulated amortization were:
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At December 31, 2025 |
At December 31, 2024 |
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Gross |
Gross |
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Carrying |
Accumulated |
Carrying |
Accumulated |
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Amount |
Amortization |
Amount |
Amortization |
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(In thousands) |
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Core deposit intangibles |
$ | 56,808 | $ | (56,808 | ) | $ | 56,808 | $ | (56,683 | ) | ||||||
The following table shows the current period amortization expense for identifiable intangible assets which were fully amortized in the year ended December 31, 2025:
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Total |
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Core |
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Deposit |
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Intangibles |
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(In thousands) |
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For the year ended December 31, 2025 (actual) |
$ | 125 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 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.