INTERNATIONAL BANCSHARES CORP Goodwill & Intangibles Disclosure
(6) Goodwill and Other Intangible Assets
The majority of our identified intangibles are in the form of amortizable core deposit premium. A small portion of the fully amortized identified intangibles represent identified intangibles in the acquisition of the rights to the insurance agency contracts of InsCorp, Inc., acquired in 2008. Information on our identified intangible assets follows:
Carrying | Accumulated |
| ||||||||
Amount | Amortization | Net |
| |||||||
(Dollars in Thousands) |
| |||||||||
December 31, 2023: |
|
|
|
|
|
| ||||
Core deposit premium | $ | 58,675 | $ | 58,675 | $ | — | ||||
Identified intangible (contract rights) |
| 2,022 |
| 2,022 |
| — | ||||
Total identified intangibles | $ | 60,697 | $ | 60,697 | $ | — | ||||
December 31, 2022: | ||||||||||
Core deposit premium | $ | 58,675 | $ | 58,675 | $ | — | ||||
Identified intangible (contract rights) |
| 2,022 |
| 2,022 |
| — | ||||
Total identified intangibles | $ | 60,697 | $ | 60,697 | $ | — | ||||
Amortization expense of intangible assets was $0, $0 and $0 for the years ended December 31, 2023, 2022, and 2021.
There were no changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 26, 2024 | Showing above |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 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.