FIRST COMMUNITY CORP /SC/ Goodwill & Intangibles Disclosure
Note 7—GOODWILL, CORE DEPOSIT INTANGIBLE
Intangible assets (excluding goodwill) consisted of the following:
| December 31, | ||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2023 | |||||||||
| Core deposit premiums, gross carrying amount | $ | 3,358 | $ | 3,358 | $ | 3,358 | ||||||
| Other intangibles | 538 | 538 | 538 | |||||||||
| Gross carrying amount | 3,896 | 3,896 | 3,896 | |||||||||
| Accumulated amortization | (3,607 | ) | (3,450 | ) | (3,292 | ) | ||||||
| Net | $ | 289 | $ | 446 | $ | 604 | ||||||
Based on the core deposit and other intangibles as of December 31, 2025, the following table presents the aggregate amortization expense for each of the succeeding years ending December 31:
| (Dollars in thousands) | Amount | |||
| 2026 | $ | 158 | ||
| 2027 | 131 | |||
| Total | $ | 289 | ||
Amortization
of the intangibles amounted to $158 thousand, $158 thousand, and $158 thousand for the years ended December 31, 2025, 2024 and
2023, respectively. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible
and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite
useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might
be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Qualitative
factors are assessed to first determine if it is more likely than not (more than 50%) that the carrying value of goodwill is less
than fair value. During the year ended December 31, 2025, qualitative factors indicated it was more likely than not that the carrying
value of goodwill was less than fair value, there were no indicators of impairment at December 31, 2025 and no quantitative testing
was performed.
The Company’s carrying amount of goodwill at December 31, 2025, December 31, 2024, and changes to the goodwill are summarized as follows:
| December 31, | ||||||||
| (In thousands) | 2025 | 2024 | ||||||
| Balance—beginning of year | $ | 14,637 | $ | 14,637 | ||||
| Acquired Goodwill | ||||||||
| Impairment | ||||||||
| Balance, end of year | $ | 14,637 | $ | 14,637 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 14, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 16, 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.