NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

 

The Company’s intangible assets consist of goodwill, core deposit intangible assets arising from acquisitions, and a trademark intangible. At December 31, 2025 and 2024, “Goodwill and other intangible assets, net” in the accompanying consolidated balance sheets totaled $41.2 million and $41.7 million, respectively, and included no accumulated impairment losses.

 

The carrying amount of goodwill at December 31, 2025 and 2024 was $40.1 million. The trademark intangible had a carrying value of $0.1 million at December 31, 2025 and 2024.

 

The Company reviews the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing on October 31, 2025 and determined that there was no impairment to its goodwill or trademark intangible asset.

 

Core deposit intangibles have finite lives and are being amortized on an accelerated basis over their estimated useful lives, which range from 10 to 15 years. The table below shows a summary of the core deposit intangible assets as of the dates presented (dollars in thousands).

 

  

December 31,

 
  

2025

  

2024

 

Gross carrying amount

 $7,486  $7,486 

Accumulated amortization

  (6,490)  (5,978)

Net carrying amount

 $996  $1,508 

 

Amortization expense for the core deposit intangible assets recorded in “Depreciation and amortization in the accompanying consolidated statements of income totaled approximately $0.5 million, $0.6 million, and $0.8 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

The estimated remaining amortization expense for the Company’s core deposit intangible assets is displayed in the table below (dollars in thousands). The weighted average amortization period remaining for core deposit intangibles is 3.8 years.

 

2026

 $398 

2027

  278 

2028

  161 

2029

  85 

2030

  59 

Thereafter

  15 
  $996 

 

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Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 12, 2025
2023Mar 7, 2024
2022Mar 8, 2023
2021Mar 9, 2022
2020Mar 10, 2021
2019Mar 13, 2020
2018Mar 15, 2019
2017Mar 16, 2018
2016Mar 9, 2017
2015Mar 11, 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.