Central Bancompany, Inc.CBC

Central Bancompany, Inc. Goodwill & Intangibles Disclosure

10-KFiled Mar 25, 20262 min read
Goodwill and Intangible Assets
Effective for the year ended December 31, 2025, the Company updated its reportable segments. As a result of this change, the Company revised its goodwill disclosure to present goodwill allocated to the Consumer and Commercial reportable segments in accordance with ASC 350‑20‑50‑1. This revision reflects a change in presentation and disclosure only and does not affect the total carrying amount of goodwill or any prior goodwill impairment assessments. Refer to "Note 19, Business Segment Reporting," to our consolidated financial statements for additional details regarding the segment realignment.
Goodwill is now presented for the Company’s three reportable segments—Consumer, Commercial, and Wealth Management—to align with the segment structure used for reporting under ASC Topic 280. The following table summarizes the Company's goodwill and core deposit intangible assets:
December 31,
20252024
Gross carrying amount
Accumulated amortization
Net amount
Gross carrying amount
Accumulated amortization
Net amount
(dollars in thousands)
Amortizable intangible assets:
Core deposit intangible assets$20,498 $(18,304)$2,194 $26,052 $(20,930)$5,122 
Trust customer intangible asset6,100 (4,866)1,233 6,100 (4,569)1,531 
Total amortizable intangible assets$26,598 $(23,170)$3,427 $32,152 $(25,499)$6,653 
Goodwill:
Consumer $126,095 $- $126,095 $126,095 $- $126,095 
Commercial 210,331 - 210,331 210,331 - 210,331 
Wealth Management11,811 - 11,811 11,811 - 11,811 
Total goodwill$348,237 $- $348,237 $348,237 $- $348,237 
Aggregate amortization expense on core deposit and other intangible assets for the years ended December 31, 2025 and 2024 was $3.2 million and $3.4 million, respectively. The following table shows the estimated future amortization expense for the next five years based on existing asset balances and the interest rate environment as of December 31, 2025 (in thousands). The Company’s actual amortization expense in any given period may be different from the estimated amounts depending on the addition of new intangible assets and other market conditions.
2026$2,483 
2027280 
2028271 
2029252 
2030141 
Total$3,427 

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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