First Guaranty Bancshares, Inc.FGBI

First Guaranty Bancshares, Inc. Goodwill & Intangibles Disclosure

10-KFiled Mar 31, 20262 min read
Goodwill and Other Intangible Assets
Goodwill and intangible assets deemed to have indefinite lives are no longer amortized but are subject to impairment testing. First Guaranty is required to conduct testing of goodwill impairment periodically (at least annually) and upon the occurrence of certain triggering events, which are events or circumstances that make it more likely than not that the fair value of its goodwill is below its carrying amount. Goodwill totaled $0 at December 31, 2025 and $12.9 million at December 31, 2024. First Guaranty performed a quantitative impairment test as of September 30, 2025, using a combination of market and income approaches, including the guideline public company method, guideline precedent transaction method, and discounted cash flow analysis, which was triggered by First Guaranty's stock price trading below book value and the recent increase in credit provisions. Based on the results of the test, First Guaranty concluded the goodwill of $12.9 million was impaired; therefore, a one-time non-cash impairment charge was recorded. There were no impairment charges in prior years.

Other intangible assets not subject to amortization totaled $0.1 million at December 31, 2025 and 2024.

The following table summarizes intangible assets subject to amortization.

 December 31, 2025December 31, 2024
(in thousands)Gross
Carrying Amount		Accumulated
Amortization		Net
Carrying Amount		Gross
Carrying Amount		Accumulated
Amortization		Net
Carrying Amount
Core deposit intangibles$16,266 $14,000 $2,266 $16,266 $13,303 $2,963 
Loan servicing assets2,200 1,928 272 2,200 1,789 411 
Total$18,466 $15,928 $2,538 $18,466 $15,092 $3,374 

The core deposits intangible reflect the value of deposit relationships, including the beneficial rates, which arose from acquisitions. The weighted-average amortization period remaining for the core deposit intangibles is 3.3 years.

Amortization expense relating to purchase accounting intangibles totaled $0.7 million for the years ended December 31, 2025 and 2024, respectively.

Amortization expense of the core deposit intangible assets for their remaining life is as follows:

For the Years Ended
Estimated Amortization Expense
(in thousands)
December 31, 2026$696 
December 31, 2027$696 
December 31, 2028$696 
December 31, 2029$177 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 17, 2025
2023Mar 15, 2024
2022Mar 16, 2023
2021Mar 16, 2022
2020Mar 16, 2021
2019Mar 16, 2020
2018Mar 15, 2019
2017Mar 16, 2018
2016Mar 30, 2017
2015Mar 28, 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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