COLONY BANKCORP INCCBAN

COLONY BANKCORP INC Goodwill & Intangibles Disclosure

10-KFiled Mar 13, 20261 min read
Goodwill and Intangible Assets
 
Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value.
  
Intangible assets consist of core deposit and customer relationship intangibles acquired in connection with a business combination. The core deposit intangible is initially recognized based on an independent valuation performed as of the acquisition date. The core deposit intangible is amortized by the straight-line method over the average remaining life of the
acquired customer deposits.  The customer relationship intangibles are also initially recognized based on independent valuations performed as of the acquisition date and are amortized by the straight-line method over 10 years.

Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2023Mar 14, 2024
2022Mar 16, 2023
2021Mar 18, 2022
2020Mar 23, 2021
2018Mar 15, 2019
2017Mar 15, 2018
2016Mar 10, 2017
2015Mar 10, 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.

Other Available Disclosures

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