CAPITAL CITY BANK GROUP INCCCBG

CAPITAL CITY BANK GROUP INC Goodwill & Intangibles Disclosure

10-KFiled Feb 27, 20262 min read
Note 8
GOODWILL AND OTHER INTANGIBLES
At December 31, 2025 and 2024, the Company had goodwill of $
89.1
 
and $
91.8
 
million, respectively.
 
Goodwill is tested for
impairment on an annual basis, or more often if impairment indicators exist.
 
Testing allows for a qualitative assessment
 
of
goodwill impairment indicators.
 
If the assessment indicates that impairment has more than likely occurred,
 
the Company must
compare the estimated fair value of the reporting unit to its carrying amount.
 
If the carrying amount of the reporting unit exceeds
its estimated fair value, an impairment charge is recorded
 
equal to the excess.
On April 30, 2021, CCSW acquired substantially all of the assets of Strategic Wealth
 
Group, LLC (“SWG”), including advisory,
service, and insurance carrier agreements, and the assignment of all related revenues
 
thereof. Under the terms of the purchase
agreement, SWG principles became officers of CCSW and will
 
continue the operation of their
five
 
offices in South Georgia
offering wealth management services and comprehensive
 
risk management and asset protection services for individuals and
businesses.
CCBG paid $
4.5
 
million in cash consideration and recorded goodwill of $
2.8
 
million and a customer relationship
intangible asset (
10 year
 
life) of $
1.6
 
million.
 
In September 2025, CCSW was sold resulting in $
2.8
 
million and $
0.9
 
million
reduction in goodwill and customer relationship
intangible asset
, respectively.
 
Amortization expense related to the customer
relationship intangible totaled $
0.1
 
million and $
0.2
 
million in 2025 and 2024, respectively.
 
The intangible asset balance as of
December 31, 2024 was $
1.0
 
million.
 
The Company evaluates goodwill for impairment as defined by ASC Topic
 
350. During the fourth quarter of 2025, the Company
performed its annual goodwill impairment testing and determined
 
that
no
 
goodwill impairment existed at December 31, 2025 and
no
 
goodwill impairment existed at December 31, 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 11, 2025
2023Mar 13, 2024
2022Mar 1, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 5, 2020
2018Mar 5, 2019
2016Mar 2, 2017
2015Mar 8, 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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